January 25, 2017
Image it’s 5:00 o’clock and the realtor calls to say she has a seller who is interested in your home and wants to see it within the hour. Obviously, panic sets in. Between the dirty dishes in the sink, the kids’ toys are scattered around the living room, and the dog’s late night decision to run through your hallway with enough mud run the heartiest of rugs, your house isn’t what you would call “presentable.”
Because selling a home is one of the most dreaded events for a family, startups have responded to the way people manage real estate transactions and created a stress-free way to do so.
OfferPad is an premium online platform that helps homeowners sell their home with a few clicks of a button. Once a seller submits a request for a price, their team evaluates the request and emails a cash offer. Upon accepting the offer, the homeowner picks a close date between 5 to 90 days out, sign and done. Yes, it’s that easy.
Founders and real estate industry leaders Brian Bair and Jerry Coleman founded the company and have acquired 100,000 homes across the country. They have been able to raise cash and thrive even during the worst downturn of the market. They decided that the needs of homeowners have evolved while the traditional way of selling a home has stayed status quo.
The Arizona-based company announced a $260 million investment of combined equity and debt from private funds managed by Philadelphia-based LL Funds, LLC.
“OfferPad is already providing a revolutionary solution in the single-family home industry. With the support of LL Funds, we can now continue to scale the business, offering a better option to tens of thousands of additional homeowners this year, and we’re just getting started,” said Coleman.
OfferPad has completed 1,000 transactions since their launch and is currently servicing Phoenix, Las Vegas, Salt Lake city, Tampa Bay, and Orlando with plans to expand into Los Angeles this month and nationwide in the coming years.
“One of the most important things for a company to consider at any stage, but especially when developing a new platform or technology, is the value you are bringing to your customers,” said Marc Chesley, president of OfferPad. “Our entire business model is oriented around improving the home selling experience based on what homeowners want, not just what we think they need. People are more technologically savvy and want convenience, but selling a home is a big deal – they don’t want it to be impersonal and cold, or feel like they are not getting a thoroughly vetted offer.”
OfferPad shares the real estate space with other tech startups such as Silicon Valley-based OpenDoor, where people can buy and sell a home with a few clicks of the mouse. OpenDoor recently raised $210 million in a Series D from Norwest Ventures, with former investors such as Khosla Ventures, GGV Capital, and more. The company has raised $320 million in capital to date with a valuation that could exceed $1 billion.
“We believe this market will grow dramatically in the next five years and OfferPad is leveraging our industry knowledge to best support homeowners,” said Bair.
With consumers responding to this new way of buying and selling homes, OfferPad has been growing at a rapid pace and is looking to expand their operations and create jobs.
“I’m excited to be a part of such a fast-growth Arizona company. We will be providing hundreds of jobs over the next year, and Arizona is a great place to put down our roots,” said Chesley.
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