As competition in the industry heats up, the tech-enabled, all-cash homebuying and re-selling startup Offerpad is not sitting idly by: the company is expanding into two new markets: Dallas, Texas, by November 1 and Tucson, Arizona, by December 3.
“We’ve always had serious plans to open business in Tucson,” said Offerpad CEO Brian Bair in a statement. “Now is the opportune time, as year-over-year existing home sales, home value and appreciation, and employment are all up. Apart from statistics, Tucson is our neighboring metro area. Arizona is our home and we’re proud to broaden our footprint across the most heavily populated part of the state.”
Offerpad is headquartered in Gilbert, Arizona, though it recently announced plans to move to nearby Chandler. The company is already operational in Phoenix, Atlanta, Tampa, Las Vegas, and Charlotte, according to its website.
Launched quietly in 2015 but making its public debut in 2017, Offerpad is one of a number of companies vying to re-invent the homebuying and selling experience online. Like other so-called “iBuyers,” Offerpad lets prospective homesellers visit its website, enter in information about their property, and obtain an all-cash offer on their home within days — less a service fee. It was founded co-founded by Bair, a top-selling real estate agent in the U.S., and Jerry Coleman, a former co-founder of Invitation Homes, the Blackstone offshoot that has become the nation’s largest rental company.
In a blog post, Offerpad points out that John Burns Real Estate Consulting has found Tucson is home to growing home sales, employment and prices. “On a year-over-year basis through August, existing home sales have climbed 2.7%; average home value is up 7.6%; and employment has risen 2.6%. Additionally, median household income is projected to steadily increase over at least the next four years,” it read.
For agents in Tucson, Offerpad wants to continue being a tool in their toolbox when trying to sell customers’ homes, says spokeswoman Cortney Read.
“As we continue to grow and we expand into more cities, we’re definitely gaining more market share,” said Read in a phone call with Inman. “But agents still have a vast majority of that. And we want to be a tool for them just like we are for our customers.
In July, Bair became the sole CEO of Offerpad after Coleman stepped down to “focus on capital raising and high-level initiatives and relationships,” according to a release at the time.
Earlier this year, Offerpad also unveiled a major redesign and hired a new chief tech officer. But it faces stiff competition from other iBuyers including Opendoor, Knock, Zillow, and now more traditional companies including Realogy and Keller Williams that are launching their own fast-cash offer services.
Read said that while Offerpad is not prepared to announce exact details yet, to stay tuned for more expansion news.