Offerpad trying to feast on Denver’s hot real estate market

Another “iBuyer” wants to take advantage of Denver’s sizzling real estate market.

Phoenix-based Offerpad has added about 165 ZIP codes throughout the greater Denver area.

It becomes the sixth iBuying option in the area. Opendoor and Zillow Offers opened shop in Denver in 2018, followed by RedfinNow and Boulder-based 8z Real Estate in 2019. In 2020, New York-based Orchard joined the scene.

Like its competitors, the business model of Offerpad revolves around purchasing homes in a process easy for sellers. Cash offers are delivered to sellers within 24 hours, and customers can select their own closing date. Offerpad then quickly relists the homes for sale — making at most minor improvements.

Offerpad charges sellers a fee that ranges from 6% to 10% of their offer, according to the company. Then the company can potentially also make money on the resale.

“While market expansion is important, Offerpad prioritizes increasing our reach within the markets where we are available,” an Offerpad spokesperson said in an email. “We usually have the largest footprint of other pureplay ‘iBuyers’ in any of our markets.”

From Denver proper, Offerpad’s footprint extends north and south along 1-25 from Fort Collins down to Colorado Springs. The company launched in 2015.

Offerpad originally targeted homes ranging from $150,000 to $500,000, but “now, we’ve expanded beyond that because we can either buy directly or offer home bids worth over a million dollars,” the spokesperson said.

Offerpad also launches in the Nashville, Tenn., area on Monday, adding the city and its suburbs to the 830 locations where the company is already active. The company said it plans to add two more markets in the second quarter of this year.