Redfin, a Seattle-based company, is one of the most prominent discount real estate brokerages in the U.S. and we’ll look at Redfin reviews today. Redfin caters services to more than 100+ markets.
What is Redfin?
Redfin’s current value is worth nearly $2 billion with over 3000 agents, brokers, and realtors (paid with a salary apart from their commission). It’s a real estate listing portal that operates and earns as a brokerage firm.
Unlike other real estate platforms that make profits from ads and lead generation, Redfin gets earnings when users sell or buy properties with Redfin’s real estate agents. As opposed to paying 3% for a traditional agent, you get to choose a listing fee between 1% and 2.5% depending on the services you pick.
Is Redfin Legitimate?
Yes, Redfin is a legitimate full-service real estate firm based in Seattle, Washington. It was started in 2004. Consequently, in August of 2017, it went public.
Afterward, it swiftly grew to become one of the top discount real estate brokers in the United States, with a presence in over 90 markets. To get the most bang for your buck, keep an eye out for Redfin Pricing, it services to limited and particular markets and charges a minimum fee.
🎯 Key Takeaways
- Redfin is a discount brokerage that benefits both sellers and buyers by offering low listing commissions and rebates.
- Although Redfin advertises a 1% commission, it is only feasible if you also buy from them.
- Redfin provides a home value estimator that you can use to determine the value of your house.
Available in 100+ U.S. markets, Redfin has near-nationwide coverage. However, it may not have agents in rural areas. If you want to compare available options in your area, you can also check out America’s top discount real estate brokers.
How does Redfin Work?
Redfin is the largest real estate brokerage. Its business model offers realtor-like services at discounted rates to attract customers. They offset their low prices by cutting their operating costs with a team of salaried employees besides upselling existing customers on additional services and offering them personalized support.
Redfin agents handle a large volume of customers amongst themselves. Further, Redfin saves on marketing by promoting its real estate agent service using its mobile app and website. So obviously, the critical limitation here is ensuring consistent service quality. A tech-centric approach and a high volume of customers limit the attention and support Redfin agents provide during a sale or a purchase.
💸 Explore More: Will Real Estate Commissions Keep Falling Sharply?
Selling with Redfin
When selling with Redfin, you’ll team up with their in-house agent. It’s their salaried employee that doesn’t get the usual commission incentive. They are paid nevertheless. Unlike a traditional real estate agent who depends on the percentage per sale, a Redfin agent gets paid even if the house is sold below the market value.
Although we can’t be quick to judge, a significant amount of incentive that has been removed from Redfin’s agent earnings. Likewise, that can affect the agent’s performance or their commitment to sell the house. Also, there are several reviews and reports about their agent’s services. These are perhaps due to their high volume of clients, and most of their employees have multiple projects or tasks to attend to.
In a nutshell, it still boils down to the price you’re willing to pay for the kind of service you want. At its best, the Redfin Concierge Service, for example, will surely get things done. You’ll get the full treatment expected from their agents but for a higher price of a 2.5% listing fee. Sellers still unsure about their service, must do some digging and consider the money they are willing to risk.
Selling with Redfin Reviews
✔️ Key benefits of selling with Redfin
- The technology-first approach makes the process transparent.
- Savings on commission with a strong reputation among traditional brokerage agents.
- Customer satisfaction transparency than other discount brokers.
Many Redfin reviews claim that agents kept the process transparent and the mobile app has excellent features.
⚠️ Key risks of selling with Redfin
- Unpredictable service quality due to a high-volume approach.
- The risk of being paired with incompetent or inexperienced agents without supervision.
- Initial offers would be lower since you list with a discount broker.
Several Redfin reviews complained about the service quality and broken promises.
Buying with Redfin
Buying a house through Redfin is straightforward, but expect less attention and support. If buyer reviews are to be believed, they might not be your best option as a buyer.
The Buyer’s commission is created from the seller’s end, so you don’t have to pay anything as a buyer. Redfin’s rebate or refund option gives you a percentage of their commission that goes to your closing costs. If you qualify for the home buyer’s rebate, this only applies to you.
Redfin won’t reveal how much or how much of a rebate you’ll get, but it says the average amount you’ll save is around $1,500. Additionally, the rebate is accompanied by a slew of conditions. So, before getting too enthused about anything, do your homework.
The selling experience offered by Redfin is quite similar to that offered by a traditional real estate brokerage. You will be provided the support you need during each stage of the process by your agent or a Redfin team member. The services and support provided by Redfin are:
- Professional photography, home staging
- 3D walkthrough for virtual tours
- Open houses
- Offer reviews
The only drawback is that you don’t receive the kind of active support usually offered by a traditional agent.
Redfin’s premium listing service, the Concierge Service, helps you to get your home ready for sale. For a standardized listing fee of 2.5%, Redfin provides professional staging and house cleaning. This service is inclusive of everything offered with the standard listing package, as explained above.
- 💰 NOTE: This package does not provide value for money. It may be cheaper for sellers to pay the listing fee of 1.5% and purchase extra services like house cleaning, 3D photography, and staging on an a-la-carte basis.
Redfin Full Service
A local Redfin agent will provide support at every step of the home selling or buying process for a listing fee of 1%. This is nuanced because Redfin’s minimum listing fee differs from area to area. Find the minimum listing fees for different locations here.
With Redfin’s full-service package, you get assigned an agent who supports you in getting your home ready, marketing your home, planning showings, negotiating offers, managing the paperwork, and closing the deal.
What is RedfinNow?
RedfinNow is an iBuyer service that gives sellers a cash offer with no obligation. Redfin pays cash for homes in select markets. Typically, sellers whose top priority is a quick and easy sale find this service lucrative. By accepting a RedfinNow offer, your time-to-close can reduce to ten days. You also won’t have to list your home, manage showings, or negotiate with potential buyers.
- 💰 NOTE: Everything comes at a price. You will be charged a premium fee. This is not charged to cover realtor commission, but is instead a service fee charged by Redfin, which comes to an average of 6-12% of the sale price. Your RedfinNow “selling fees” are variable from 6–12%, based on your home and the housing market in your area, and cover the convenience of an all-cash offer.
How Much Does Redfin Cost?
Redfin Listing service offers a discounted 1.5% listing fee, than the typical 2.5-3%. That means higher dollar savings for higher home prices.
|Selling with Redfin||1.5%|
|Buyer’s Agent Commission||2.5% – 3%|
|Total||4% – 4.5%|
Redfin’s listing fee isn’t the only expense you incur when selling a house via Redfin. In a real estate transaction, the seller pays the buyer’s agent a commission for getting that buyer to purchase the house. Rates vary by the market, typically it’s 2.5%-3% nationwide. As a seller, you can advertise commission rates at your discretion. Too low a buyer’s agent commission rate can lead to more days on the market and eventually paying more.
A competitive buyer’s agent commission will incentivize real estate agents to show your house so that it sells for top dollar instantly. Redfin sellers are not an exception, so you end up paying 4%-4.5% fees in total.
Redfin Hidden Fees
Although there is no hidden fee with Redfin, numerous additional fees, such as state-specific minimum fees and misleading 1% commissions are not disclosed upfront.
Is Redfin 1%?
Redfin intensely advertises a 1% listing fee, even though their standard listing fee is 1.5%. They can market 1% because they offer additional savings for customers who sell and buy with the company within 12 months.
If you qualify, Redfin will reduce your listing fee to 1%. For instance, if you sell first, you will be charged 1.5% as the listing fee. 0.5% of this will be refunded to you once you buy your new home.
Pitching add-on services to existing customers forms a major part of Redfin’s business model. These add-on services are as follows:
- Title Forward: Redfin’s title and settlement company
- Redfin Mortgage: An in-house mortgage broker
- Redfin Open Book: An affiliate network for service providers like contractors, electricians, and landscapers
💸 Learn More: Best Low Commission Real Estate Companies
Redfin Minimum Fees
Redfin claims to offer a flat commission rate but depending on your location, you will be required to pay the minimum fees that range from $2,000 to 7,000. If the sale price of your home is less and you’re trying to sell in an inflated market, the commissions charged by Redfin could adversely affect or completely negate your anticipated savings.
Let’s look at a few markets with minimum fees and savings return, assuming your home is worth $200,000.
Are Redfin Agents Good?
Redfin hires its salaried agents and creates savings by having those agents handle more customers at once than a typical realtor. Multiple people are involved in closing one deal. So that each client gets expertise, selling advice, and relevant support during the house sale or purchase. When an agent joins Redfin, they are given in-house training to maintain the quality of service.
Redfin agents are paid a salary, so they have no incentive to get you the highest price for your home. Traditional agents work on a percentage-based commission rate creating the potential for getting the highest price.
Owing to Redfin’s business model, their agents handle more customers than traditional realtors, which means you are competing with 3 more customers for your agent’s timely support and attention. This can hamper the house sale due to a lack of personalized support during crucial phases of the sale.
Redfin has a mixed bag of reviews. Using Redfin certainly offers more advantages than traditional realtors but it’s necessary to consider the pros and cons before deciding. On Consumer Affairs, Yelp, and Google, they averaged 3.2 out of 5 stars.
Pros and cons
✅ Discounted Rates, Commission Savings
Selling via Redfin promotes cost savings because the Listing Agent’s Commission is reduced from 3% to 1%. This can vary depending on your area, but, say, you sold your home at $500,000. You can potentially save $10,000 selling through a Redfin agent. If the buyer doesn’t have an agent representing them, you save another 3% ($15,000), which is $25000 in your pocket!
Redfin’s low fees make it a seller favorite. And a consistent review given by sellers, who have sold with them, is that these savings are genuine.
✅ Intuitive, User-friendly Technology
Redfin is a technology-first company and offers a far better platform than other real estate discount brokers. For home searching, Redfin’s app has received popularity amongst buyers and sellers, with millions of downloads. The dashboard is very intuitive and creates a pleasant home browsing experience. Along with standard filters, such as square footage, bedrooms, and property type, you can filter for more specific details, like setting the exact number of stories or parking spaces you want a property to offer.
For the visually inclined, you can search properties with 3D walkthroughs and virtual tours. And filter by GreatSchools rating and include local schools on the map view. Results can be browsed in list view or map view, and you can create custom map lines to narrow your search to just your preferred area.
You can also keep track of past tours and upcoming houses in Redfin’s mobile app. Reviews state that this is a useful feature. The in-app calendar eliminates the need for maintaining a schedule elsewhere, making this a user-friendly experience.
✅ Safer than Other Discount Brokers
There are service quality compromises everywhere, but with Redfin, the chances are reduced as you are working with a branded discount broker. Risks are less likely to occur with them because agents undergo intensive training in the housing market. They follow a team-based approach, involving multiple stakeholders in one deal so that there is enough supervision and ample expertise.
Why Redfin is Bad
⚠️ Limited Visibility
Houzeo’s basic listing – the Bronze package – is free in many states or costs $99 only. It gives you exposure to 12,000+ potential home buyers monthly. It also gives you access to all their tools like the online offer, an MLS listing, ShowingTime, etc.
Redfin does not provide a free listing. The cheapest option, Redfin Full Service, provides the help of a Redfin listing agent and comes with a 1% listing fee. Redfin Concierge service is even more expensive, charging you a 2.5% listing fee with the option of getting 0.5% back if you use Redfin to buy your next home. Plenty of Redfin reviews also mention this is an inconvenience because other competitors in the space offer free listings, including Houzeo.
⛔ Unpredictable Agent Quality
Because they handle a large volume of customers compared to traditional realtors, some clients may not get the necessary attention and support available to a conventional brokerage. The Redfin Agent finder tool is helpful to select an agent based on their experience and profile, but nobody can guarantee a seamless home selling journey.
This is where customer support teams come into the picture. When you know that help exists, you feel empowered in your home selling process. Houzeo staff is available at every step of the way, and having a 100% online platform has facilitated us to assist instantaneously. With Houzeo’s mobile app, you can browse properties, manage paperwork and get support on time at your fingertips!
⛔ Offline, Manual Process
Control over their sale is the #2 priority of home sellers in 2021. Saving money on commissions is still the #1 priority. Houzeo has digitized change requests, so you can request changes online yourself. Contracts are automatically generated based on the change you request, and you sign them instantly. No waiting on your agent to create a contract for you.
With Redfin, you’ll have to call your Redfin agent, who’ll then generate a contract when they get to it. They’ll then ask you to sign it. Once you sign, they can make listing edits – when they get to it. This offline, manual process increases the turnaround time.
⛔ Costly Partner Agents
Agents working for other brokerages who team up with Redfin to reach more clients. Since Partner Agents aren’t employed by Redfin, they are liable to a 1%-1.5% listing fee or offer a Redfin refund. You get paired with Redfin’s Partner Agent if your home is outside their direct service area or below their minimum price. It is also possible when Redfin agents are experiencing a high volume of customers and need to offload some.
Houzeo Mobile App
- View your listing
- Review and compare offers
- Counter an offer
- NEW! Buyers can now search your property and save it in “Favorites”
Redfin vs. Traditional Agents
The fundamental difference between the two business models is how Redfin and the traditional agents earn their living. Redfin’s agents usually earn through their salary and bonuses based on their client’s feedback. This may sound good for the agents, but they often abuse this and don’t work hard to help their clients— why do your best if you’ll get paid anyway?
Yet let’s not surmise ahead of how Redfin agents can’t do their work well. The Concierge Service, for instance, offers the real estate service experience with online tools and additional help from experts—but for a higher price.
Working with a traditional agent is like teaming up with a business partner. You both want what’s best for your home. But buying and selling with Redfin seems questionable since their commitment depends on the price.
💸 Explore More: America’s Top Discount Real Estate Brokers (2022 Updates)
Redfin vs. Houzeo
Houzeo is a 100% online FSBO website. You can list on MLS within 12 business hours. Houzeo’s advanced tech helps you manage your listing, offers, showings, inspections, and closings. It has a 4.9 out of 5 ratings.
Houzeo offers affordable FSBO MLS listing packages:
- Bronze – $329+: This package offers Houzeo listing only for 6 months with maximum photos.
- Silver – $399+: This plan includes everything offered in the Bronze package. Additionally, you can make unlimited listing changes, get a custom yard sign, and access Houzeo Showings and Houzeo Offers.
- Gold – $379+ 0.5% at Closing: This plan includes everything offered in the Silver plan. You also get federal and state disclosures, a personal concierge, call forwarding, and more. It is Houzeo’s most advanced package.
- Platinum – $349+ 1% at Closing: This is the ultimate plan with a 1-year listing term and virtual full-service from a licensed broker who’ll help you until closing.
👉 Our Recommendation: We recommend the GOLD plan. You’ll have access to Houzeo tech, making managing showings and offer negotiations easy! Confirm all prices on the state’s pricing page before you list.
Houzeo is the best For Sale By Owner website in the U.S., and here’s why:
- 100% Online: Houzeo is tech-centric. For you, this means easy listings, fast changes, online showings, and online offers. Houzeo Mobile App is also very powerful.
- Maximum Exposure: Your listing gets syndicated to 100+ real estate websites like Zillow and Trulia. This ensures maximum visibility for your FSBO property.
- Maximum Savings: With Houzeo, you save at least 3% on listing agent commissions. The company discloses all costs upfront, so there are no Houzeo hidden fees.
- Stellar Customer Review: Houzeo is rated “Excellent” with a 4.9 out of 5-star rating by 5,112 home sellers on Google Reviews and Trustpilot!
- Nationwide Coverage: Houzeo covers 47 states and DC.
Houzeo’s services are limited in Wyoming, South Dakota, and West Virginia. This means your listings may not get updated in 12 hours and may not get maximum exposure.
» Houzeo Complaints: Find out if there are any serious complaints about Houzeo.
Houzeo is not your ordinary flat fee MLS and FSBO service provider. It’s one of the most advanced For Sale by Owner websites available. Once you’ve decided to list your home, the overall process runs smoothly—all essential documents and listing paperwork, all online! There are no hidden costs at closing and no listing agent commission.
A standard flat fee MLS charges a listing fee and leaves you at the market alone. But at Houzeo, packages are tailored to suit your home-selling needs, from basic to full service. You’ll be listed on big online platforms like Realtor.com, Zillow, Trulia, and 100s more other websites.
Besides, Redfin’s 1% listing fee may seem not appealing compared to Houzeo’s pricing package—only $199 to start listing. It’s even less than Redfin’s 1% listing agent commission. Also, listing your property with Redfin may be subject to limitations, and some states aren’t even available.
Though Redfin has online tools and gives you a dashboard, Houzeo also offers IntelliList Listing Management System. In a way, it helps manage your listing details, signs your Listing Agreement online, and tracks listing progress. So basically, it does the same thing with Redfin’s feature but for a lesser price.
If you’re looking for the most advanced Flat Fee MLS/FSBO platform that offers limitless leverage and cutting-edge technology, visit Houzeo and list your home.
- ✅ 100% automation, most of the procedure is done on the Houzeo website, in this way it saves you a great deal of time and helps you find the best deals for your house.
- ✅ IntelliList Listing Management System auto-fills your listing details
- ✅ Multiple services are available on an a-la-carte basis
- ✅ Lists your home on many other websites like Zillow, Trulia, Redfin, Realtor.com, and others.
- ✅ Excellent customer support, you can verify their ratings and reviews on Trustpilot
- ✅ Houzeo has launched its mobile app that facilitates you to browse homes, list, review and compare offers.
💸 Learn More: Houzeo Reviews: All You Need to Know About Houzeo
Redfin vs. Zillow
Zillow is one of the best sites for property search. It is a vast database.
💼 Offerings: Zillow is a buyer-oriented website, but it also provides a unique experience to sellers, financers, and home renters. It allows the buyers to search for homes from a big pool of listings. It assists them in the complex process of home-buying and makes it simpler.
🔑 Key features: You will find Zillow like websites, but the comfort of being here will always remain different. Zillow provides fantastic features to buyers to make them comfortable with the home-buying process. Zillow assists the buyers throughout the process, from home search to closing the deal.
💁♀️ Suitability: If you are looking for home search websites and want to have a lot of options to choose from, Zillow is suitable for you. This big real-estate website is good enough for everyone who wants to buy a home on rentals, or permanently both ways. Also advisable for the sellers who wish to sell their homes fast.
💡 Queens Advice: Know a bit more about Zillow
- The interface is user-friendly
- It has millions of home listings
- Poor customer service
- Not accurate in calculating costs for buyers
On a trustworthy source Consumer Affairs, Zillow has 3.7 stars out of 5, based on 351 reviews.
Zillow has nationwide coverage.
As one of the best real estate websites, Zillow shares some features as Redfin, especially the property listings and home value estimates (Zestimate). Still, while both platforms use data analytics to get home estimates, the methods and factors are distinct. But what makes them distinguishable is their agents.
Zillow doesn’t get their agents from their own company. That means most of the agents on the site paid Zillow to be on the site—others paid more to get more visibility to clients. While Redfin, a full-service real estate brokerage, employs a real estate agent who is getting paid a salary. In other words, they are in-house employees who belong to the Redfin company.
However, it doesn’t mean Zillow’s agents are unprofessional. They are highly-trained agents with extensive experience and help you increase your home value and get the home sale done.
Bottom line: Is Selling on Redfin a Good Idea?
Selling on Redfin has its pros and cons. Weigh the possible pitfalls and benefits before choosing the tool to market your home. We looked at reviews on Redfin and realized that the in-house agents are both a blessing and a curse. Although they also receive some great feedback, some clients aren’t happy—and it mostly pinpoints the area of communication or responsiveness.
So, is selling on Redfin a good idea? Well, it depends. If you’re you’re prepared to sell your home and have done some research, then Redfin can be a great platform to increase your visibility. But if you want a full-service or customized home-selling with little or zero commission, a Flat fee company or FSBO can do both.
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