Losses at Offerpad Solutions Inc. mounted in the final quarter of 2024 as the iBuyer bought and sold fewer homes than it did in Q3 — and made a smaller profit on each home sold — the company reported Monday.
Offerpad reported a $17.3 million Q4 2024 net loss Monday, up 28 percent from the previous quarter, as homes acquired dipped 9 percent to 384, and homes sold fell 18 percent to 503.
The gross profit on each home sold was also down 24 percent to $21,100.
Offerpad CEO Brian Bair put a positive spin on the year as a whole, highlighting Offerpad’s growing Renovate business, which generated $18 million in 2024 revenue, and improved advertising efficiencies as nearly one-third of acquisitions came through the company’s Agent Partnership Program.
Offerpad launched its “Powered by Offerpad” portal in Q2 for agents and agent teams who are part of the company’s Pro and Max agent programs. Offerpad pays agents a 3 percent referral fee on Offerpad cash sales and a listing fee of up to 1 percent on Offerpad-owned homes. Integration with Realtor.com allows homeowners in select markets to request an instant estimated cash offer through Realtor.com’s Seller’s Marketplace.
Brian Bair
“We’ve made tremendous product improvements as we’ve remained focused on delivering real estate solutions for consumers and partners while making progress toward building a long-term, sustainable business,” Bair said in a statement.
At $62.2 million, Offerpad’s 2024 net loss was down 47 percent from the year before, when the company finished $117 million in the red.
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But executives at Tempe, Arizona-based Offerpad say they’ve “taken big steps toward profitability” and are preparing for an expected increase in market activity by strategically expanding Offerpad’s “buy box” in order to acquire pricier homes in selected markets.
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