Cash Offer vs. iBuyer (Opendoor and Offerpad): Which One Fits Your Home?

What each one actually is

These are two different business models, even though both promise a fast sale without listing on the open market.

• A direct cash buyer is a company that buys your house with its own funds, fixes it up, and resells it. The price it offers already accounts for the work the home needs. There is no agent, no financing contingency, and no commission.
• An iBuyer (short for "instant buyer") is a tech company such as Opendoor or Offerpad that uses market data and comparable sales to make a quick offer online, then buys the home, prepares it, and resells it. The model works best with homes that are already in good, predictable condition.

The core trade-off: an iBuyer starts from a market-based number and then takes its costs out line by line, while a direct cash buyer builds every cost into one as-is number with nothing deducted later.

The offer: what you actually keep

Neither Opendoor nor Offerpad publishes a fixed percentage of market value that it pays. Opendoor says its estimate is based on local market data, recent comparable sales and the details of your property, and its own help center admits that selling to Opendoor may bring a different price than listing on the open market. Offerpad says offer prices depend on your home's location, condition and the local market.

Direct cash buyers typically pay further below market value because they take on homes that need real work and carry more resale risk. At Sterling the offer usually lands around 65% to 80% of the after-repair value, depending on condition. The right way to compare is not the headline number but your net proceeds: the dollars that actually reach you after every fee and deduction. Opendoor's own advice says the same thing: look at net proceeds, the amount you actually take home after all costs.

Fees: the biggest difference

This is where the two models split most clearly.

• Opendoor charges a service charge for buying, holding and reselling your home. It does not publish a fixed percentage; the amount varies by market and home and is shown as its own line in your offer breakdown. Repair costs (the "condition adjustment") and estimated closing costs are deducted on top of it.
• Offerpad posts its service charge and its closing-cost estimate on its own website, so you can see the rate before you ask for an offer. If repairs are needed after its walkthrough, Offerpad takes them as a credit adjustment from the price instead of asking you to fix anything.
• A direct cash buyer like Sterling Home Offer charges the seller no commissions and no fees, and covers standard closing costs. The number you accept is the number you build your plans around.

With an iBuyer, the offer you first see and the amount you finally net can differ meaningfully once fees and the assessment are applied. Always read the full breakdown.

A worked example: two offers on the same house

Say an iBuyer offers $300,000 for your home, and its service charge and closing costs together come to 6% of the price. That takes $18,000 off and leaves $282,000. If its walkthrough then finds $12,000 of repairs, the deduction brings you to $270,000. These are round numbers to show the math, not a real quote: use the figures in your own offer breakdown.

Now say a direct cash buyer offers $268,000 as-is with no fees and closing costs paid. The two offers look $32,000 apart on paper, but the money that reaches you differs by about $2,000. On a house that needs more work than the walkthrough expects, or one the iBuyer won't take at all, the cash offer can come out ahead. Run this math with your own numbers before you decide.

Condition requirements: who qualifies

iBuyers are selective about which homes they will buy, because their model depends on a quick, low-risk resale.

• Opendoor buys single-family homes, townhomes and some condos. It does not buy mobile or manufactured homes (even on permanent foundations). Homes with major structural damage or serious foundation issues may not qualify. Homes with fire damage, severe water damage or mold throughout may not qualify either. Homes on large acreage are not eligible, very old homes (pre-1930 in some markets) may not qualify, and a tenant-occupied home generally has to be vacant at closing.
• Offerpad says it buys homes as-is and handles needed repairs through a credit adjustment after its walkthrough, but it also notes that eligibility and prices vary, and it only buys in the markets on its locations list.
• A direct cash buyer buys houses as-is, in any condition, including older homes, properties needing major repairs, fire or water damage, homes with tenants, and difficult title situations. No repairs, cleaning, or staging are required.

If your home is older, damaged, occupied, or otherwise outside an iBuyer's box, a direct cash buyer is often the only fast path.

From our deals: the kitchen in this photo is from a house we bought for cash, exactly as it stood. It had been neglected for years: knee-high grass, broken kitchen cabinets, holes in the walls and ceilings, torn porch screens and junk everywhere. A home in that state sits outside the standard-condition box described above, and nobody asked the seller to repair, clean or clear anything before closing.

After closing, the work was ours: we opened the kitchen wall into a peninsula with new cabinets and quartz, put in new floors, paint and lighting, rebuilt the bathroom, rescreened the porch, cleared the yard and painted the outside. That is the cost a direct cash offer builds in up front, instead of deducting it after an inspection. You can see this house and others on our projects page.

Speed: how fast you close

Both models move faster than a traditional listing, where showings, negotiation and the buyer's loan approval can add weeks or months.

• Opendoor first assesses the home through self-assessment photos or an in-person walkthrough, then lets you choose your closing date. Its final offer can differ from the preliminary one once that assessment is done.
• Offerpad also lets you pick your closing date, after its walkthrough and any repair credit.
• A direct cash buyer can move quickly: Sterling can close in as little as ~14 days, with 14 to 30 days typical, and can also slow down to wait through probate or your moving timeline. Because there is no financing and no post-inspection renegotiation, the offer is more stable.

Moving help and staying after closing

The perks matter when you compare. Offerpad advertises free moving services and a short stay after closing; check the current limits on its site. Sterling offers a free local move (we pay the movers for a move up to 50 miles, for homes up to 2,800 sq ft) or a free cleanout if you'd rather leave things behind, and you can stay up to 14 days after closing where the deal allows, subject to qualification. Ask any buyer to put these terms in writing.

Do Opendoor and Offerpad buy in your part of Florida?

Coverage is the first filter. Opendoor's help center lists Orlando, Tampa and Jacksonville among its Florida metros and tells you to enter your address to confirm. Offerpad only buys in the cities on its locations page, so check that your city is listed before you count on an Offerpad offer. A local cash buyer that works your county doesn't depend on an algorithm's market list.

What the FTC found about iBuyer offers

In August 2022 the Federal Trade Commission took action against Opendoor over misleading claims about its home-buying service. Opendoor's charts almost always showed sellers making thousands of dollars more by selling to it. The FTC complaint stated that, in fact, the vast majority of consumers who sold to Opendoor lost thousands of dollars compared with a traditional sale, because its offers had been below market value on average and its costs higher than a typical realtor's. Under a proposed FTC order, Opendoor would pay $62 million and stop its deceptive tactics. That is not a reason to avoid iBuyers, but it is a good reason to compare the final net on paper, whoever you sell to.

Questions to ask before you sign

• What is my net amount after every fee, closing cost and repair deduction?
• Can the price change after the inspection or walkthrough, and by how much?
• Who pays closing costs, and are they in the number you quoted?
• Can I pick or move the closing date, and can I stay a few days after?
• Do you buy homes like mine (age, condition, tenants, title issues) in my county?

A buyer that answers all five in writing is one you can compare fairly.

Side-by-side comparison

Factor	Direct cash buyer	iBuyer (Opendoor / Offerpad)
Typical offer	Below market, all costs built in (Sterling about 65% to 80% of after-repair value by condition)	Market-based estimate; no fixed published percentage; fees and deductions reduce the net
Seller fees	None	Service charge (varies, shown in your offer breakdown) plus closing costs
Repair deductions	None after offer	Condition adjustment or repair credit after the assessment
Condition accepted	Any condition, as-is	Standard condition; major damage may not qualify
Eligible homes	Most homes, including distressed, occupied, problem title	Single-family, townhomes, some condos; no mobile or manufactured homes; tenants out by closing
Florida coverage	The counties the buyer works	Opendoor: Orlando, Tampa, Jacksonville and more; Offerpad: only cities on its locations list
Speed	About 14 to 30 days; can wait if needed	You pick the date, after an assessment that can change the offer

Nothing is binding with a reputable cash buyer until you sign a written purchase agreement, so you can compare offers without obligation.

Who each option suits

An iBuyer may fit you if your home is relatively new, in good condition, in a metro the iBuyer serves, and you are comfortable trading a service charge for a market-based offer and a self-scheduled closing.

A direct cash buyer may fit you if your home needs repairs, is older or damaged, is inherited or in probate, is vacant, has tenants, or you are behind on payments or facing a deadline. It also fits when you simply want one clean, fee-free number with no post-inspection surprises.

The best move is to get both kinds of offers and compare net proceeds, not headline price.