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Cash offer listing platform Offerpad is aiming to further reward agents it works with by offering as traditional a carrot as possible — more money.
The company announced the formation of two new tiers of agent collaboration, Offerpad PRO and Offerpad MAX, the latter being an invite-only network for high performers aiming to become long-term referral partners, according to a Jan. 29 press release. Offerpad PRO allows listing agents to work with the company after their seller moves on to sell the home a second time.
“Since our inception, our primary mission has been to streamline the home buying and selling journey for consumers,” said Kyle Rush, senior vice president of growth, in the press release. “This dedication is the very reason our company was founded. Sellers opting for representation by an agent can still enjoy the advantages of receiving cash offers from us, as we continue to prioritize this foundational focus. Agents who partner with Offerpad can not only expect to increase their earnings substantially but also gain access to an extensive suite of tools to diversify their consumer offerings.”
Offerpad provides sellers a unique way to transact by providing a fast, tech-enabled cash offer, along with a number of additional benefits, such as a post-closing stay-over period, a free local relocation and the ability to choose a closing date. If the cash offer isn’t to the seller’s liking, Offerpad can list it for them on the open market, a service that may include simple pre-list home cleaning and light maintenance, as well as more extensive work, such as repainting, carpets, flooring and mid-grade cosmetic projects.
Any agent representing a seller who sells directly to Offerpad receives a 3 percent referral fee, and the relationship is typically closed. However, under the new PRO initiative, the listing agent is eligible to sell the home on behalf of Offerpad, earning an additional 1 percent.
The company does the majority of the heavy lifting in terms of marketing while the agent fields leads and facilitates the sale. Agents can also become Offerpad certified, according to the release, by completing a training program on its brand, communication tactics and marketing tools. The agent can also leverage Offerpad’s renovation services and promote its ancillary services.
Offerpad MAX offers the same “sell then list” incentive, but buoys it with the advantage of exclusive location-based access to Offerpad-owned listings and leads. The “zone” program is considered for top producers, and not all who apply will be approved. Agents can purchase a region and in exchange, be given the chance to pitch sellers Offerpad’s model can’t serve.
“They’ll also secure listing opportunities for Offerpad-owned homes in their designated zones, along with exclusive access to one of the most sought-after programs, Offerpad’s “Start with Sold” – a backup cash offer for sellers choosing to list their home,” the release stated.
According to Offerpad, zones in which the MAX plan was beta tested sold out quickly. Agents in Las Vegas, Indianapolis, Jacksonville and Phoenix will be able to access each plan in mid-February, with more markets being added throughout Q1.
Offerpad continues to maintain a space in the industry despite hard sledding for its category, best defined as iBuyer. However, Q3 of 2023 was good for the company; the Arizona-based company earned $234.2 million in revenue, slimming net losses to $20 million “despite a continued difficult macro environment” that tanked several major competitors including Zillow Offers, RedfinNow and Anywhere’s RealSure, Inman reported.
The company acquired 930 homes (-50 percent yoy) and sold 703 (-69 percent yoy), as it rightsized the company in the face of delisting on the New York Stock Exchange. Even with lower revenues and transaction activity, Offerpad slimmed net losses 75 percent to $20 million.
In October of last year, Offerpad initiated a collaboration with Anywhere Real Estate whereby agents within the Anywhere Leads Network will serve Offerpad sellers outside of the iBuyer’s coverage. It currently operates in 14 states and over 1,000 cities.
