Compare Prevu and Offerpad

For Sellers

Listing Rate
1%
Commission
Minimum commissions and other terms may apply. Buyer's Agent Commission (2.5%-3%) is not included, but sellers may be able to negotiate this as well.

For Sellers

Cash Offers
20%
Home Equity
Offerpad does not provide real estate services to home sellers. Instead, Offerpad buys homes directly, repair and resell them to other buyers or companies that rent them to tenants. Typically an offer equal to 80% of home value is expected from this type of sale after any, fees, cost of the repairs and resale markup.

For Buyers

Buyer’s Savings
67%
Commission Rebate
When Prevu represents home buyers, it contributes 67% of its Buyer's Agent Commission (2.5%-3%) to the buyer as a way to financially compete for a buyer’s business. Home buyers do not pay any taxes on the amount, the refund amount is always tax-free.

For Buyers

Not Applicable
0
No Rates
Offerpad does not provide real estate services to home buyers. Instead, local franchisees buy homes directly, repair and resell or rent them to tenants.
Question: What is the difference between Prevu and Offerpad?
Answer: Prevu is a full-service real estate agent that offers savings to homebuyers and home sellers while Offerpad is a direct home cash buyer that buys select homes off-market with cash offers and resells them at a profit to homebuyers
Compare Prevu and Offerpad for home buying and selling. HomeOpenly is an impartial and an open resource focused on trending real estate services, portals and start-ups.

First published: 17 February 2019
Last updated: 25 April 2021

Buying and Selling with Prevu

Prevu is a New York-based real estate broker that offers sellers listing savings and refunds buyer’s part of their commission.

Prevu Pricing

Prevu offers listing savings to sellers (1% listing rate) and buyer’s refunds (67% commission rebate)

Listing Services

  • MLS Listing
  • Zillow, Trulia, etc. Listing
  • Accept and Deliver All Offers and Counteroffers
  • Hold Open Houses
  • Professional Photography
  • Professional Floor Plans
  • Yard Signage Installation
  • Spare Key Lock-box Installation
  • Schedule Inspection Services
  • Schedule Private Showings
  • Closing Duties

Buyer's Agent Services

  • Find the Property
  • Accept and Deliver All Offers and Counteroffers
  • Recommend Other Professionals
  • Attend Inspection Services
  • Schedule Private Showings
  • Negotiate Needed Repairs
  • Closing Duties

Prevu Editor's Review:

Prevu is a consumer-focused real estate agent that successfully represents consumers in New York and offers sizeable savings. Prevu Agents are salaried employees who are not motivated by commission.

Prevu service includes posting home on the MLS and MLS Aggregator services, professional photos and 3D images in addition to all typical services offered by a traditional real estate agent.

For buyers, Prevu offers real-time listing notifications, on-demand home tours and a client web portal for monitoring the purchase process - making it easier to find and buy homes.

Overall, Prevu offers an excellent proposition to buyers and sellers alike.

Where does Prevu operate?

Prevu currently operates in select areas across New York.

Buying and Selling with Offerpad

Offerpad is a direct home buyer that makes cash offers to sellers as it considers the condition of a home, improvements, home's upgrades, and required repairs.

In determining the offer, Offerpad discounts the offer amount from the estimated retail value after it’s fully renovated.

Offerpad Pricing

Offerpad makes money with fees and a difference between buying and selling each home. Offerpad claims service fees vary between 6% to 10%, plus an additional 1% to 3% of the purchase price in closing costs.

Sellers can also expect to receive an offer that has a built-in margin of 5% to 10% between the market price today and what Offerpad plans to flip the home in the open market.

In summation of all these fees, an offer equal to 80% of home value is reasonably expected from this type of sale after fees and cost of the repairs and resale.

Listing Services

  • This Service Does Not Represent Sellers

Buyer's Agent Services

  • This Service Does Not Represent Buyers

Offerpad Editor's Review:

Offerpad will buy a home at a price that is below market value due to necessary repairs, renovation, and other factors. After it buys the home, it renovates and resells it for a profit to another buyer or another company that rents it out to qualified tenants. With low offer price, comes a convenience of an all-cash closing when selling a home. Offerpad typically provides a conditional offer within 24 hours.

Offerpad will perform a free, on-site inspection of your home within 15 days of the signed conditional agreement. If Offerpad finds something it doesn't like and the sellers decline to make any requested repairs or issue a Offerpad credit it demands, Offerpad can then choose to cancel the contract or may determine that it still wants to move forward with the purchase of the home. If Offerpad elects to cancel the contract, there is no penalty to either party.

Offerpad does not make offers for most homes, it will only make offers for single-family residential homes in areas where it operates, including condos and townhomes, built after 1960, with a value of no more than $500,000-$600,000 as well as fair conditions without any major repairs required. Offerpad will not consider homes with significant foundation, structural or other condition issues.

Typically, Offerpad uses the following factors when determining the offer: existing condition of the home including repairs needed, time it will take to finish needed repairs, value of a home compared to other comparable homes in the area, real estate commission required to resell, costs associated with maintaining a home during repairs, including taxes, payments, insurance, utilities and homeowner dues.

The main disadvantage of using Offerpad is high loss in homeowners' equity. Offerpad is a "heavy" model, ready to buy homes in all-cash transactions. As any real estate investor, Offerpad is susceptible to losing money in any given transaction. Offerpad model further suffers from a "double expense" such as paying all the normal transaction costs that come with selling a home—including a commission to a buyer's agent (3%), concessions to buyer, holding costs, maintenance fees, taxes and other costs to list and market the home.

This model is prone to a number of risk factors, high operational costs and a continued need for higher-than-average Return on Investment (ROI) with each flip.

Offerpad is not legally bound to represent consumers, its main legal obligation is to its stakeholders. Moreover, because most homes in the United States are financed, homeowners own only partial net equity in their home.

Banks receive the same amount of the remaining mortgage sum regardless of how any given home is sold, or how much of homeowners' net equity is lost in the transaction with Offerpad.

Today, there are a number of highly qualified real estate agents who offer competitive listing rates and flat fee listings across the United States. Unless a situation absolutely requires a quick sale, HomeOpenly recommends that consumers first consider using a licensed real estate agent working on competitive terms to properly list their homes on the open market before turning to Offerpad option.

Where does Offerpad operate?

Offerpad currently operates in select areas across Atlanta, Charlotte, Las Vegas, Los Angeles, Orlando, Phoenix, Tucson, Tampa, Salt Lake City, and Dallas-Fort Worth..