HomeLight Reviews: Pros, Cons, and Alternatives

9 mins read Nov 26, 2024
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Editor
Edited By

Megha Mulchandani

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Editor
Edited By

Megha Mulchandani

Editor, Houzeo
About

Megha M. is an adept content editor well-versed in the intricacies of American market dynamics and economic trends. In her free time, she excels as a versatile theatre artist and public speaker.

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HomeLight is a real estate company based in Scottsdale, Arizona. They help connect both home sellers and buyers with top real estate agents through their agent-matching services.

Editor’s Rating

4.6

User Rating

1.6

(7 Reviews)

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Pros

  • HomeLight has an extensive network of top real estate agents.
  • They recommend agents within minutes after you submit the information.
  • You’re free to choose other agents if the recommendation doesn’t work for you.

Cons

  • 33% of what you pay to your agent goes to HomeLight as a referral fee.
  • There’s no scope for commission savings.

HomeLight is a real estate company that offers a wide range of services. They are most commonly known for their agent-matching service. They use a referral algorithm to pair you with potential agents. Moreover, HomeLight also helps you buy a new home before you sell your existing one.

However, HomeLight doesn’t have strict eligibility criteria for their agents. Any agent with a brokerage license can join their network. Besides this, they don’t offer savings on real estate commissions.

Houzeo can help you get on the MLS for a nominal flat fee. In addition, selling the FSBO way also allows you save thousands on commission.

    ✍️ Editor’s Take: We recommend selling your home with Houzeo instead of HomeLight. Houzeo’s stellar customer service helps you at every step of home-selling. Compare HomeLight vs. Houzeo.

Is HomeLight a Legitimate Company?

Yes, HomeLight is a legitimate real estate company founded by Drew Uher in 2012. According to their website, they have partnered with more than 30,000 agents and lenders, and have served 1M+ clients.

How Does HomeLight Work?

You can find a real estate agent on HomeLight’s platform with ease. You just need to select “I’m selling” on their homepage and fill out a form to get personalized agent recommendations.

  • Provide Information: Enter your property details such as address, size, type, and built year, along with your contact information.
  • Get Recommendations: At first, you will get 3 agent recommendations. If these agents don’t meet your expectations, you can ask for more matches.
  • Talk to Agents: You can have a call with the agents to understand their expertise and choose the best match for your needs.
  • Sign the Listing Agreement: Once you’ve selected an agent, you’ll need to sign a listing agreement to move forward.

After the paperwork, the agent will list your home on the MLS. They also help you find prospective buyers and negotiate with them.

HomeLight Services

» Jump to: HomeLight Simple Sale | HomeLight Home Loan | HomeLight Buy Before You Sell

HomeLight Simple Sale

HomeLight Simple Sale, earlier known as HomeLight cash offer connects you with cash buyers who help you sell your house as is. You can expect a quick cash offer after you sign up and close the deal in as few as 10 days after you accept the offer.

However, most cash buyers do not offer a fair market value for your house. So, you may have to settle with a lowball offer for a quick sale.

» What’s My Home’s ValueYou can know your home’s market value with Houzeo’s free Home Worth Estimator. It helps you estimate the amount you will get upon sale.

HomeLight Home Loan

This service makes mortgage pre-approval easy for home buyers. They help you get pre-approved within one day of mortgage application.

HomeLight Buy Before You Sell

It is also known as the HomeLight Trade-in program. In this service, HomeLight evaluates the equity of your home and uses this equity to purchase a new one. Once you move out, HomeLight helps you sell your old home.

HomeLight Coverage

HomeLight covers all 50 states and D.C.

How Much Does HomeLight Charge?

HomeLight’s agent matching services are free for both sellers and buyers. However, HomeLight charges your agent a referral fee. This fee is around 33% of your agent’s commission. This accounts for roughly 1% of the listing agent commission.

For instance, if your home’s value is $300,000, your agent will charge you $9,000. Out of this, HomeLight will keep around $3,000.

    🚩 To add to this, HomeOpenly, another real estate platform, had once accused HomeLight of price fixing and false advertising. Watch the video to uncover the truth about the HomeLight vs. HomeOpenly case.

HomeLight Reviews

HomeLight has secured a 4.6 out of 5-star rating based on 537 reviews on Google. Moreover, the company has a 4.1 out of 5-star rating on Better Business Bureau based on 105 reviews.

HomeLight Positive Reviews:

✅ Rishi had a great experience with HomeLight. He also praised the agent he was matched with.

Rishi MashelkarUSASubmitted 2022

Utilizing HomeLight made it simple to track down the top expert realtor local to us. The entire process was so fast and simple. Our real estate met us and came up with a plan quickly. They were exceptionally knowledgeable about the local market and the bigger housing trends. They helped us price the house accurately leading to a fast sale!

Source: Google

✅ Simon was delighted with HomeLight’s customer service. He was also happy with the agent he hired through HomeLight.

Simon TangUSASubmitted 2022

The HomeLight experience was great and easy to use. The website was intuitive and connected us with a great agent that provided us with a set of options. We ended using him as the sellers agent for the retail listing, and his team moved the process along fairly smoothly He was communicative and provided regular updates on the markets included detailed reports. We would highly recommend HomeLight to others!

Source: Google

HomeLight Negative Reviews:

❌ Ryan S. was frustrated that HomeLight shared his contact information with realtors despite his request for no agent involvement.

Ryan S.USASubmitted 2024

I request an Offer for their Simple Sale cash buy option, and specifically stated that I did not want to be contacted by an agent… After entering my information they immediately said no investors were available in my area and sent my contact info out to several realtors. They are not to be trusted with your information. This is just a bait and switch referral operation.

Source: Better Business Bureau

❌ Christopher S. was disappointed that HomeLight’s quick appraisal promise led to spam texts.

Christopher S.USASubmitted 2024

Typical deceptive clickbait website. Advertises an appraisal estimate in as little as 2 minutes. I entered in my information only to receive spam texts that wont give an estimate without having them match with local real estate agents. The site doesnt generate the information advertised.

Source: Better Business Bureau

HomeLight Reviews: Pros and Cons

Here are some major benefits and limitations of working with HomeLight to help you make an informed decision.

✅ Pros

  • Wide Network of Brokers: HomeLight Inc. has a network of over 30,000 agents.
  • Quick Suggestions: HomeLight instantly gives you an agent recommendation after you fill out an online form.
  • No Obligation to Hire Agents: HomeLight doesn’t oblige you to hire the agent through them. If you don’t find a desirable match, you can walk away.
  • Coverage in Smaller Towns: HomeLight has a good network in smaller towns as compared to some of their competitors.

❌ Cons

  • No Scope to Negotiate Commissions: The agents of HomeLight have to pay a referral fee. This eliminates your scope to negotiate the commission.
  • No Savings: HomeLight doesn’t offer any savings through their service, unlike other real estate companies.
  • Unreliability of Services: Your experience entirely depends on the agents you collaborate with.

HomeLight Competitors

» Jump to: HomeLight vs. Houzeo | HomeLight vs. UpNest | HomeLight vs. Opendoor

1. HomeLight vs. Houzeo

HomeLight connects you with real estate agents who typically charge you 2.5 to 3% commission. While you benefit from expert guidance and support, the agent commission is a significant cost to consider when selling a house.

On the other hand, Houzeo eliminates the need for agent commission and offers Flat Fee MLS listing service. You can manage the home sale process yourself, save on hefty commissions, and gain exposure to potential buyers.

HomeLightHouzeo
Listing Fee33% referral fee$399
Customer Rating4.6 stars (537 reviews)4.9 stars (10,092 reviews)
CoverageNationwide47 states + Washington D.C.
Mobile App
Showings Management Platform
Offer Management Platform
Counter an Offer
Request Highest and Best Offer
Home Inspection Dashboard

2. HomeLight vs. UpNest

HomeLight connects you with top real estate agents, but takes 33% of the agent’s commission as a referral fee. This helps match you with qualified agents for your home sale.

UpNest is a marketplace where agents compete for your listing and offer discounted services. The company charges a 30% referral fee on the agent’s commission after the sale.

3. HomeLight vs. Opendoor

With HomeLight Simple Sale, you can sell your home for a competitive price in as few as 10 days. Additionally, you won’t have to pay any extra fees or commissions.

On the other hand, Opendoor, the largest iBuyer in America, offers cash but at prices lower than your home’s fair market value. They also charge a 5% fee on every home they purchase.

Other Options You Should Consider

  • Sell to an iBuyer: iBuyers purchase homes needing minimal repairs in as-is condition. They can be a great option if you want to sell your house fast.
  • Sell to Cash Home Buyers: Individual cash home buyers make all-cash offers, usually within 24 to 48 hours. They also let you skip listing on the MLS.
  • Sell For Sale By Owner: FSBO websites help you sell your house yourself, saving thousands in agent commissions. Many FSBO websites will also help you with the paperwork.

Is HomeLight a Good Option For You?

Yes, HomeLight is ideal if you want professional agent recommendations, though it comes with a 3% commission fee. While HomeLight reviews highlight their reliable service, the commission cost may be a downside for some sellers.

In contrast, Houzeo provides a Flat Fee MLS listing, helping you avoid high commission fees. With excellent customer support and positive feedback, Houzeo is a great choice for sellers who prefer a more cost-effective approach.

Frequently Asked Questions

What does HomeLight do?

HomeLight is a real estate technology company that connects buyers and sellers with top real estate agents. Learn more about the HomeLight services.

Who is the owner of HomeLight?

Drew Uher is the owner of HomeLight. He established this company in 2012 to simplify the agent search process. Learn more about how HomeLight works in the real estate market.

What is HomeLight's referral fee?

HomeLight charges a referral fee to the agents partnered with them. This is 33% of their commission, or usually 1% of your home's sale price.

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Reviews

1.6

(7 Reviews)

  • James

    Verified Reviewer

    Homelite was a nightmare from the very beginning. Twice, we received leads from a different source. Homelite then sent over their lead on the same address. We declined. They still tried to sue us after they closed

  • Brenden

    Verified Reviewer

    Not at all, just another place to waste your money as a realtor

  • Alison Bessette

    Verified Reviewer

    This is an absolute scam just to get your info and give it to a bunch of realtors that charge to help sell your home the link I actually thought i was signing up for was to get an all cash offer on my house which you never even get one and I was extremely upfront when I stated that in no way was I interested in having realtors contact me but guess what now they are and since I the text message where I clearly state to not give my information to anyone and they still did I will be filing a complaint with first my states attorney and then anyone else who may handle regulating this kind of blatant disregard for a consumer.

  • Mark Wright

    Verified Reviewer

    worst experience representing buyer than ever. Seller had no support and had no idea of how the process worked. Home was not listed correctly. Unless you REALLY know all the ins and outs of real estate. Stay away from this. it will cost you.

  • Leslie Carver

    Verified Reviewer

    Homelight has been a terrific resource for me!

  • Charles Kimball

    Verified Reviewer

    18th Jan 2024

    I keep receiving calls and text messages wanting to buy my house and/or help find an agent. I have repeatedly told them that I am not interested in selling my home and to quit contacting me. If HomeLight continues to contact me, I will contact TREC.

  • Anonymous

    Verified Reviewer

    3rd Mar 2024

    DO NOT WASTE YOUR TIME WITH HOMELIGHT. BIG SCAM!

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