TL;DR
- Opendoor and Offerpad pay more of retail (~85-92%) but charge a service fee (~5-7%), only buy homes in good condition built after 1960 in specific LA ZIPs, and cannot close as fast on complex situations
- Local cash buyers pay less of retail (~70-80%), charge no fees, buy properties in any condition including probate and rentals, and can close in 7-10 days
- For most owners of older LA homes, multi-family, tenant-occupied, or properties needing work — iBuyers will not buy at all, so the real comparison is local cash buyer vs traditional listing
Side-by-side comparison
| Factor | Opendoor / Offerpad | Local Cash Buyer |
|---|---|---|
| Property age | Usually post-1960 | Any |
| Property condition | Move-in ready, minor repairs only | Any condition |
| Property type | SFR, some townhomes | SFR, condos, 2-4 unit multi, vacant land |
| Tenants in place | Usually not accepted | Accepted |
| Probate | Usually not accepted | Accepted |
| Offer % of retail | 85-92% | 70-80% |
| Service fee | 5-7% | None |
| Repairs deducted | Yes (often materially) | Included in offer |
| Close timeline | 14-60 days | 7-14 days |
| Geographic coverage | Limited LA ZIPs | All of LA County |
| Offer certainty post-inspection | Can be renegotiated | Should stand per written offer |
Net-to-seller example #1 (clean Culver City 3/2)
Property: Culver City 3/2 in good condition, ARV $1.15M.
- Opendoor offer: $1,100,000 − 6% service fee ($66K) − $15K repair deductions (typical) − 1.5% seller closing costs ($16.5K) = Net ~$1,002,500
- Local cash buyer offer: $900,000 − $0 fees (closing costs covered) = Net $900,000
- Retail listing (5.5% commission, $30K repairs, 45 days market + 30 days close): Net ~$1,030,000 but in 75+ days
On this type of property, the iBuyer wins by ~$100K — if the property qualifies.
Net-to-seller example #2 (older tenant-occupied South LA)
Property: South LA 2/1, built 1928, original systems, tenant-occupied, ARV $680K.
- Opendoor: Property does not qualify. No offer.
- Traditional listing: after commissions, concessions, carrying costs, and tenant-relocation, likely nets $520K-$560K in 90-150 days
- Local cash buyer: $475K, close in 7 days, no tenant issues, no repair coordination
On this type of property, the choice is cash buyer vs traditional listing — and whether $50K-$80K is worth 120 days + uncertainty.
Which to choose
- Clean, move-in-ready, post-1960 home in an iBuyer-covered LA ZIP with no tenants and no rush: try the iBuyer first for a comparison quote
- Anything else: local cash buyer or traditional listing
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