Congratulations on deciding to sell your home the easy way with Offerpad! You’ve already done the hard part. Now that you’ve accepted our cash offer and signed your sales agreement (which wasn’t hard at all, was it? 😉), it’s time to close.
Here’s what happens next so you can hang that “SOLD” sign!
What’s Offerpad’s closing process?
Closing on your home is the final stage of selling it. It’s when ownership of your home is officially transferred from you, the seller, to Offerpad, the buyer. On average, from the time you sign your sales agreement until your closing date — which you choose! — it usually takes us about 40 days to close on the sale of your home.
As in any traditional home closing, there are several steps and certain costs involved, but Offerpad has streamlined the process for you so you’ll be in your next home before you know it. (We even move you there for free!*)
Meet your Success Manager
The first step toward closing is a virtual meet and greet with your personal Offerpad Success Manager. 👋(We promise; they’re a real live person, not an AI bot). They’ll be your single-point-of-contact (or ‘go-to’ person, confidant, lifesaver, sanity check; you get the idea) until the sale of your home is complete.
Your Success Manager is the subject matter expert on everything related to signing your purchase agreement to the closing of escrow. They’re the glue that keeps everything moving to ensure your closing goes without a hitch and you close on time. Your Success Manager:
- Schedules, manages and reviews all home inspections
- Handles any addendums to your contract, such as adjusting your closing date, extended stays if you need to stay in your home after we close (you can, BTW, for up to three days – no charge!), credits & repairs, etc.
- Coordinates and processes all the necessary paperwork needed to complete your closing documents
- Sets up your free local move (if applicable) after the sale
- Is here to hold your hand and answer all your questions along the way
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Keep up with every step during closing, check your to-do lists and see what’s happening next in the Offerpad app. Download it for free here.
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Home inspection
We hire a licensed, third-party property inspector (not an Offerpad employee) to perform a free, on-site inspection of your home within 15 days after you sign our sales agreement. This allows us to verify its size (square footage, lot size, number of bed and bathrooms) and condition, and to identify any repairs that may need to be taken care of before closing. The focus of the inspection is only on issues that may impact the value of your home. (Minor honey-do items you never got around to taking care of are cool with us.)
After the initial inspection of your home, the inspector’s report goes directly to your Success Manager who reviews it with you. Based on the report, we may need to work with other independent licensed contractors for additional input. Your Success Manager will work with you to coordinate scheduling any additional inspections, if needed.
Repairs
If any repairs are needed, you can choose to:
- Provide us with a credit for the repairs. This means no money out of pocket for you. Just sign an addendum to your sales contract for the credit, and we’ll have all the repairs done for you and adjust our sales price accordingly. (Tip: This is our most popular, no-hassle option if repairs are needed.)
- Make the repairs before closing. You hire a licensed contractor to complete any repairs to ensure they’re up to current building codes. You give us your contractor’s name and license number, before and after pictures, and receipts. We then inspect and approve the repairs during the final walk-through. (More on that later.)
- Decline to make any requested repairs or issue a credit. If you don’t want to make any repairs or give us a credit to make them, as the buyer, Offerpad can cancel our contract or decide if we still want to purchase your home. If we cancel the contract, there is no penalty to either you or us. (Keep in mind, though, these repairs will most likely have to be made whether you sell to us or decide to list your home. A traditional buyer will typically want these same issues fixed or credited before they agree to purchase your home.)
Note: In cases where repairs needed are so significant that they require substantial funds to complete or additional expertise to manage, we offer the option of a credit only.
Getting cleared to close
When you sell your home to us, you have the freedom to pick your own closing date (also referred to as the close of escrow) from up to 90 days after accepting our offer. (If you need to close beyond that, we may be able to work with you on a case-by-case basis.) Need to close quick? You can check the minimum timeframes to close by state here.
What if you need to change your closing date? No problem. We can adjust it at any point during the selling process, as long as it’s still within the 90 days after you’ve signed the sales contract. If you need to change it, let your Success Manager know and we’ll send you an addendum to the sales contract.
Closing costs and fees
As with any traditional home sale, sellers who sell to Offerpad are also responsible for certain closing costs, which are outlined in your purchase contract. These may include title insurance, escrow fees, HOA transfer fees, taxes, document transfers, attorney and other customary fees. Such fees differ based on your market and can range from 1% to 3% of the purchase price we pay for your home.
Closing costs, as well as any repair credits you may have provided, are deducted from the final sales price of your home. Before closing, your Success Manager will help you estimate your net proceeds so you know what you can expect to receive at closing.
Offerpad’s just-reduced 5% service fee is also deducted from the final sales price. This fee helps us cover the normal transaction costs that come with listing and selling your home again after we buy it. Those costs include a commission to a buyer’s agent, buyer concessions, holding costs, maintenance fees, insurance, taxes and other expenses we incur listing the home on the open market — costs you were able to avoid by selling to us for cash!
Final walk-through
For your closing to occur as scheduled, your home must be sold to us in the same condition as when we entered our contract. That includes landscaping and pool maintenance.
We typically do a final walk-through of your home after you’ve moved out to ensure nothing has changed (don’t worry; you don’t need to be there) and to confirm all personal property and any trash has been removed. We’ll also check to make sure any repairs needed to close were made during the walk-through.
Signing on the dotted line
Before closing, the title companies and services we use ensure the title to your home is legitimate and issue title insurance so we can complete the sale. In addition, they maintain the escrow account for the sale of your home and handle the earnest money deposit from Offerpad, payoffs to mortgage companies, HOA dues and any other transaction funds.
Your Success Manager will let you know as soon as the title company notifies us that we’re cleared to close and help you set up a convenient time to sign the final documents. “Closing” may take place at their office (or your attorney’s if you’re using one) or you may ask for a mobile notary to come to you. You can also e-sign documents remotely to make closing even easier and more convenient.
On your closing date, the sale is recorded on public record and funds are distributed. The timing of this varies depending upon the state you live in and the time of day you sign your documents. The title company or attorney’s office handling your sale will send the final payoff payment to your lender (if applicable). Any remaining funds (less closing costs) will be wired directly to your bank account.
Congratulations! You’re sold! 🎉
In closing …
Any questions about closing on your home? Reach out to your Offerpad Success Manager. Any other questions about selling your home with us? Find answers here or give us a call. We can do literally (almost) everything to help with your real estate needs.
*Terms and conditions apply. Visit www.offerpad.com/move-for-free for details.