Why Offerpad is getting more selective on home buys

Heading into the second half of 2026, Offerpad was laser-focused on “turning its buying engine back on,” however, housing market headwinds caused by rapidly rising mortgage rates and continued affordability challenges, have led the iBuyer to increase the intentionality behind its strategy. In a call with investors and analysts to discuss the company’s third quarter 2026 earnings, Offerpad executives said that with homes taking longer to sell, the firm adjusted its acquisition criteria to require higher expected returns on a property. In addition, they said the company has become more selective about new purchases and that it adjusted its underwriting to build wider expected margins into each purchase. Instead of providing home sellers with a direct cash offer, executives said Offerpad was looking to serve more sellers through its Cash Offer Marketplace and Brokerage Services offerings. During the quarter, Offerpad recorded 324 total transactions, up from 295 transactions a quarter prior, but down 32% annually. Executives attributed the lower-than-anticipated number of transactions for the quarter to the overall slower housing market. “We’ve operated with mortgage rates above 7% bef...