Offerpad

iBuying raised $1.5B and SPAC'd at $3B — mortgage rates rose 3%→7% in 2022, per-home losses averaged $20K+ in Q3 2022, 70% staff layoffs November 2022, stock fell 98% from SPAC valuation

Years-long decline before final shutdown · Fatal mistake: Offerpad built iBuying — buying homes directly, renovating, reselling. $1.5B raised. SPAC IPO at $3B valuation 2021. Competing with Opendoor. 2022: mortgage rates rose from 3% to 7%. Home values fell in most markets. Homes purchased at 2021 prices had to be sold at losses. Offerpad's per-home loss averaged $20,000+ in Q3 2022. Laid off 70% of staff in November 2022. Revenue and volume collapsed. Stock fell 98% from SPAC valuation by 2023.