National Builder Teaming up with Offerpad.... Sign of the Future? (agents, commissions)

[Sunshine Rules]

I work in FL and received a rather interesting promotional email from Taylor Morrison yesterday in which the builder is announcing they have teamed up with Offerpad for those buying new construction homes from TM that also need to sell a current home.


From the email:

Buy confidently, and sell quickly this summer.

Seller worries be gone. Now you can buy your Taylor Morrison home comfortably without the stress of selling your current one. Here are a few reasons why accepting an offer from Offerpad is the move to make for your next move.

Benefits of selling your home through Offerpad:

Receive a competitive cash offer within about 60 minutes

Align closing dates of existing and new home up to 9 months out and maintain flexibility; change the date as needed

Reduced service fees (4%) for customers using Taylor Morrison/Offerpad partner portal

No need to rush or move twice; stay up to 5 days after closing with extended stay

Free local move paid by Offerpad (restrictions may apply)*



Have other agents received similar builder notifications in your area? I wonder how many potential sellers realize how Offerpad actually works and that additional service fees are involved?

[MikeJaquish]

Lennar did this a couple of years ago with OpenDoor.
https://www.opendoor.com/w/builder/lennar

The goal is to discourage the consumer from having legit professional representation by tossing out a glitzy package.
The bonus is partnering up for a sure closing at below market pricing while not paying commissions.

[MikePRU]

Originally Posted by MikeJaquish

Lennar did this a couple of years ago with OpenDoor.
https://www.opendoor.com/w/builder/lennar

The goal is to discourage the consumer from having legit professional representation by tossing out a glitzy package.
The bonus is partnering up for a sure closing at below market pricing while not paying commissions.

What this guy said.

Clearly, this is a great arrangement for the developer but the consumer gets the short end of the stick. Sadly, there will be people who sign up for this not knowing that they are leaving a lot of money on the table and are being taken advantage of.

[GoPhils]

Originally Posted by MikeJaquish

Lennar did this a couple of years ago with OpenDoor.
https://www.opendoor.com/w/builder/lennar

The goal is to discourage the consumer from having legit professional representation by tossing out a glitzy package.
The bonus is partnering up for a sure closing at below market pricing while not paying commissions.

Does this combo prevent buyers from using an agent on the buy side?

Yes they’re usually leaving money on the table on the selling side, but buying new construction is one scenario where there could be some advantage to selling to an i-buyer.

Will be interesting to see how the i-buyers do in general if the market cools though…

[MikeJaquish]

Originally Posted by GoPhils

Does this combo prevent buyers from using an agent on the buy side?

Yes they’re usually leaving money on the table on the selling side, but buying new construction is one scenario where there could be some advantage to selling to an i-buyer.

Will be interesting to see how the i-buyers do in general if the market cools though…

"...prevent..."
No. But the parties certainly will not encourage buyers to use an agent, and certainly will make it difficult.

Considering how completely inept and unethical OpenDoor is, and how many national builders actively discourage buyers from having representation, and you have the opportunity for buyers to get even a shorter end of the stick.