Redfin is one of the biggest discount brokers in America. They claim to sell your home for top dollar with a low listing commission of 1%.
With Redfin, you get what you pay for – a discounted quality of service. Moreover, Redfin customer reviews also highlight the lack of promised guidance and support by their agents.
Many discount brokerages offer fewer services for a low commission. Is Redfin’s service worth the commission? Let’s find out!
Key Takeaways
- Pros: Redfin is a widely known brand. They have an easy-to-use website that offers all relevant information about the property in one place.
- Cons: Redfin’s agents are salaried employees. Consequently, they aren’t incentivized to do what is best for you. You need to buy and sell a house with them in within a year to qualify for 1% listing.
- Bottomline: We do not recommend Redfin for most home buyers and sellers. Houzeo offers better packages cutting-edge technology, and stellar customer service. Compare Houzeo vs. Redfin.
Is Redfin Really 1%?
No. Redfin charges a listing fee of 1.5% or a market-based minimum fee for their home selling services. Home sellers have to pay an additional 1% if they sell to an unrepresented buyer.
You must SELL AND BUY with Redfin within 365 days to qualify for their 1% discounted listing fee. In this case, they will send you a check for 0.5% of the listing fee after you close on your new house.
This discount scheme is invalid if you list with Redfin’s partner agents.
- 🚩 Deal Breaker: Redfin’s website has no clear explanation on how 1% fee works for minimum service states.
Calculate your Savings: Traditional Agent vs. Redfin vs. Houzeo
What is Redfin?
Redfin is a discount brokerage firm. They offer listing agent services for a lower commission of 1.5% of the sale value. This is less compared to traditional agents, who charge a fee of 3%.
Redfin also offers home-buying services. They allow buyers and buyer agents to search for properties and start offers through their website.
The company also matches home sellers and buyers with local Realtors. You can hire an agent by registering on their website.
BEST TECH-ENABLED BROKERAGE
Redfin.com
- Listing Fee: 1.5% of sale price
- Available in 80+ U.S. Markets
3.3/5
(372 Reviews)
3.3/5
(372 Reviews)Redfin is one of America’s top discount real estate brokerages. This low-commission broker specializes in home buying. Redfin.com’s technology is what sets it apart from all other platforms.
- Redfin Full-Service Agent – 1.5% Commission: This is a full-service package. This includes pricing assistance, listing paperwork, negotiation support, etc.
- Redfin Concierge – 2.5% Commission: The “Concierge” plan includes everything from the Full-Service package. Additionally, it includes services like professional cleaning, home staging, and more.
- Redfin Premier Agent – 1.5% Commission: This package is exclusively for luxury properties and includes everything that comes with the Full-Service package.
👉 Our Take: We recommend Redfin’s concierge service. This service enhances the value of your house with a professionally managed design plan and no upfront fees.
» Selling With Redfin: Is it worth selling with Redfin?
Here are some advantages of choosing Redfin:
- Advanced Technology: Redfin is primarily known for its advanced tech platform and mobile app.
- Full-Service Agents at Low Commission – 1.5%: Redfin’s full-service package is priced at 1.5%. It saves you thousands compared to the traditional 3% listing commission.
- Buyer Rebate – 0.5%: Clients who sell and buy with Redfin within one year get a rebate of 0.5% in the second transaction. However, this offer is available with the Full Service Plan.
- Detailed Paperwork: Redfin provides the necessary paperwork and an elaborate listing agreement with a marketing plan.
- Nationwide Coverage: Redfin covers 80+ markets in the US.
» What is Redfin? Is it truly a smart choice to choose them? Read the comprehensive review to know more!
In our research, we found some red flags of Redfin, that could make your experience less satisfactory.
- Lack of Personalized Services: Customers have often complained that Redfin agents are not able to give personalized service, as they serve a high volume of clients.
- Poor Customer Reviews: Customers have complained that agents are often unreachable and unprofessional.
- Slow Listing Process: According to Redfin’s listing agreement, a Redfin property takes 18 days to list on MLS. Services like Houzeo will list you on the MLS within 24 to 48 hours.
- Limited Agent Selection: As per customer reviews, Redfin lacks an array of agents. This means you get an agent assigned automatically without having any choice in the matter.
- Agents are Less Incentivized: Unlike traditional agents who work for commission, Redfin agents get a fixed salary. This can demotivate them from offering you additional services.
» Redfin hidden Fees: Check this out to learn more about their hidden fees.
Redfin has an average rating of 3.3 out of 5 stars on Consumer Affairs.
» Redfin Reviews: The Reality of 1% Fees, Pros, Cons, & Alternatives!
» Discount Real Estate Brokers: Find out America’s top 10 discount real estate brokers & brokerages
Redfin Coverage
Redfin offers their services in 100+ real estate markets across the country in 49 states.
Here are some Redfin alternatives you can consider in the other 2 states.
Is Redfin Legit?
Yes, Redfin is a legitimate company established in 2004 by David Eraker, David Selinger, and Michael Dougherty. In 2006, Glenn Kelman was named the CEO of Redfin. The company went public in 2017.
Redfin is a loss-making company. Its enterprise value fell from 5.08 billion at the end of 2021 to 1.79 billion in 2022. Last year they were forced to pull the plug on their iBuyer arm, RedfinNow, as it could not keep up with the slowing real estate market.
How Does Redfin Work?
Redfin offers real estate agent services to home sellers at a low commission rate. They also connect home buyers to local agents. The company is able to offer low commission services by:
- Encouraging a higher number of customers per agent.
- Cutting down operation costs by paying agents a salary instead of a commission.
- Charging a market-based minimum listing fee ranging from $2,000 – $8,500.
- Leveraging technology like the home search app to attract buyers.
- Upselling existing customers by offering personalized support with additional services.
How to Sell With Redfin?
The process of selling with Redfin is quite straightforward. It is as follows:
Step 1: Enter your street address and zip code.
Step 2: Schedule a consultation with a real estate agent. You can choose between a virtual and an in-person consultation.
Step 3: Answer a series of questions about the property and fill in personal details.
A local Redfin agent will get in touch with you for further discussions according to the details and preferences.
How to Buy With Redfin?
Here’s what you need to do to buy a house with Redfin:
Step 1: Enter the area where you plan to buy a house.
Step 2: Browse through the listings on Redfin.
Step 3: If you find a house you like, you can schedule a tour, ask questions, or start an offer.
Step 4: Answer a series of questions about your offer and how you plan to pay.
Step 5: Add personal details to connect with a buyer’s agent to discuss the game plan.
The buyer’s agent will do the required paperwork and negotiate with the seller on your behalf.
What Does Redfin Offer?
Selling and buying with Redfin is similar to working with a traditional brokerage. This means you get the services of a real estate agent to guide you through the transaction. Let’s take a look at all the services Redfin offers.
Redfin Full Service
Redfin Full Service is the basic plan for sellers. Here, you pay a listing fee of 1% -1.5% for the following services:
- MLS listing
- Professional photography
- Digital marketing plan
- 3D virtual tours
- Open house schedule
- Yard signs and fliers
- 💡 Remember: Redfin’s listing fee is subject to market-based minimums. Check the Redfin agent commission in your area before making a decision.
Redfin Concierge Service
Redfin Concierge is an add-on service to renovate your home. Redfin’s in-house team draws a design plan and manages the project to completion.
However, you must pay a staggering 10% of the renovation cost with a minimum fee of $1,500 as fee. This service is only available in select markets across the country.
Redfin Premier
This plan is for luxury properties priced more than $1 million. Redfin guarantees the best of their experienced agents in this plan. They also offer additional services like targeted marketing, home staging, and drone photography.
Redfin Premier is priced similarly to the Redfin Full Service plan.
Redfin Partner Agent
They connect you with a partner agent in areas that fall out of their direct coverage. Redfin’s partner agents are not salaried employees and do not work exclusively with them. They may charge a commission higher than 1.5%.
You may also get assigned to a partner agent if:
- Redfin is experiencing a shortage of in-house agents, or
- Your home is below Redfin’s minimum price
- 🚩 Deal Breaker: You cannot avail Redfin’s reduced 1% commission if you work with Redfin’s partner agent.
RedfinNow
RedfinNow was an ‘as-is’ iBuyer service that made instant cash offers. As mentioned above, Redfin shut down RedfinNow on November 9, 2022.
» iBuyer Reviews: Need to sell your house quickly? These home-buying companies extend instant cash offers.
Selling With Redfin
You must be prepared to pay a commission of up to 2.5% of the sale price if you opt to sell with Redfin. While this is less than traditional brokerage fee, is Redfin good for sellers? Let’s dive deeper into the pros and cons of selling with Redfin before we draw a conclusion.
✅ Pros
- You Pay Low Listing Commission: Redfin helps list your house on the MLS for a commission of 1% – 1.5% of the sale price. This is low compared to the 3% charged by traditional listing agents.
⛔ Cons
- Redfin Agents Do Not Have any Incentive to Sell Your House: Redfin agents are paid a fixed amount even if the house gets sold below the market value. This may impact their performance and commitment to selling your house. Redfin Concierge comparatively guarantees better services, but it comes with higher service costs.
- You May Get Inconsistent Service Quality: Redfin agents usually work with a team that helps them coordinate with different stakeholders. While this may sound like a good way to fine-tune efficiency, the involvement of multiple people may lead to mistakes, communication lapses, and delays.
- Your Experience Depends on the Agent You Work With: Depending on your location, Redfin assigns you in-house or partner agents. So, your experience depends on the agent you work with. You can switch agents if you are unsatisfied. However, you may lose time starting with a new agent from scratch.
- You May Not Get the Required Agent Support: Redfin’s business model entails the engagement of a high volume of clients per agent. Agent support may be subject to their availability.
Is Redfin Good for Sellers?
No. Sellers usually opt for discount real estate brokers when they require agent support but don’t want to pay a 6% commission. According to customer reviews of Redfin, the experience of selling with them completely depends on the agent you get assigned. The risk of getting stranded is a high price to pay for a low listing commission.
Buying With Redfin
Redfin acquired Bay Equity in April 2022, in an attempt to mold Redfin into a one-stop shop for real estate needs. Redfin offers 0.25% off on the standard interest if you finance with Bay Equity to eligible buyers. However, the conditions for eligibility are unclear.
Buyers do not have to worry about agent commission as sellers are responsible for it. But, is Redfin good for buyers? Let’s look at the pros and cons to find an answer.
✅ Pros
- You Can Browse Properties on Their Mobile App: Buyers can use Redfin’s mobile app to browse properties for sale and rent. They can also book property tours.
⛔ Cons
- Redfin Agents May Be Unresponsive: According to Redfin customer reviews, their agents may be unresponsive.
Redfin Refund
This was Redfin’s buyer rebate program that offered eligible buyers a rebate of 0.2% (on average) as closing cost credits. Redfin began phasing out its rebate program in July 2022 and has reportedly completely stopped offering it.
Is Redfin Good for Buyers?
Yes. With Redfin’s user-friendly website and mobile app, buyers can browse properties from the comfort of their homes. This also helps inexperienced buyers figure out what they are looking for.
How Much is Redfin’s Fee?
When selling with Redfin, apart from the 1.5% listing fee, you also have to pay a 2.5% to 3% buyer’s agent fee. This brings up the total commission to 4% to 4.5% of the sales price.
Offering a competitive buyer agent commission serves as an incentive and could attract more offers for your home. Here’s Redfin’s commission split:
| Redfin Listing Fee | 1.5% |
| Buyer Agent Commission | 2.5% – 3% |
| Total | 4% – 4.5% |
Redfin Hidden Fees
There are no hidden Redfin fees.
However, Redfin also does not disclose its minimum fee policy upfront. Moreover, according to an investor report, Redfin has started advertising its “1%” commission to move-up customers.
Redfin Minimum Commission
Most people don’t know that Redfin charges a minimum fee to its clients. This means that if the 1.5% commission is less than the minimum fee, you will end up paying a higher commission.
Let’s look at an example. Assuming that your selling price is $200,000, here’s a breakdown of Redfin’s minimum fees in different markets:
| Market | Property Value | Redfin Minimum Fee | How Much You Pay Extra? | Actual Listing Commission | Total Commission (+ 2.5% Buyer Agent ) |
|---|---|---|---|---|---|
| New York | $200,000 | $4,500 | $1,500 | 2.25% | 4.75% |
| Orange County | $200,000 | $5,500 | $2,500 | 2.75% | 5.25% |
| Boston | $200,000 | $4,500 | $1,500 | 2.25% | 4.75% |
The minimum fee range between $2,000 to $8,500 based on location.
Houzeo vs. Redfin
For most home sellers, Houzeo offers far better value. Houzeo plans are designed to suit sellers with different levels of experience. Unlike Redfin, Houzeo’s model is based on a flat fee structure, which proves to be more pocket-friendly. So, you get the promised services at the promised price.
Moreover, Houzeo does not charge any additional fee if you sell to an unrepresented buyer.
Plus, Houzeo mobile app and web technology will make your listing and sale a pleasant experience!
| Feature Comparison | Houzeo | Redfin |
|---|---|---|
| Nationwide coverage | ✅ | ✅ |
| 100% Online Process | ✅ | ❌ |
| Mobile App | ✅ | ✅ |
| Offers sent directly to you | ✅ | ❌ |
| Countering an offer | ✅ | ❌ |
| Request the highest & best offer | ✅ | ❌ |
| Showing management | ✅ | ❌ |
| Expedited listing | ✅ | ❌ |
| Quick listing changes | ✅ | ❌ |
| Buyer property search feature | ✅ | ✅ |
Redfin Reviews: Is Redfin Worth it?
Overall, Redfin has a mixed bag of reviews. They have an average rating of 3.3 out of 5 across various websites like Consumer Affairs, Yelp, BBB, and Google.
Most positive Redfin reviews praise the real estate agent and their user-friendly websites. However, Redfin complaints and negative reviews highlight the inconsistency in the quality of service and unprofessionalism. These make working with Redfin seem like a hit-or-a-miss situation.
✅ Rosalind was pleased to find all relevant property details readily available on the website.
Easy website, usually have great homes and latest updates, thorough information of location, description, aerial maps, distances to your job, property details, public facts, schools, estimate, flood risk, sale & tax history.
Source: Consumer Affairs
✅ Xingmei was happy to have found a knowledgeable agent who supported him.
My wife & I recently sold our condo…We had such a great experience with ****! He was very professional, courteous, knowledgable and reverent. He was more like a friend helping us than an agent. We really respected his determination to be honest and legitimate with the buyer.
Simply put…Our experience with Redfin was so positive.
Source: Consumer Affairs
❌ Liz was unhappy with the unprofessional behavior of the assigned Redfin real estate agent that delayed the sale of her house.
I booked an appointment with an Agent last week, who had to cancel…I contacted her to re-book. She agreed and we set a time…She texts me and says she needs to cancel…Then she had the nerve to tell me how booked and busy she is as she cried on the phone, saying how her co-workers didn’t support her…should have checked the reviews, prior to using Redfin…Waste of time, Waste of energy.
Source: BBB
❌ Philip was disappointed with the lack of knowledge and experience of the real estate agent he was assigned.
Unprofessional firm…they have no understanding of market…they sent a notification to have my listing by stating my house is worth around $460,000 despite…recent comparables showing it’s closer to $900,000. In support of their lowball contention they showed a comp…recently sold for $960,000…which was smaller and older…they sent me another notice…they might be able to get $457,000.
Source: Consumer Affairs
Redfin Alternatives
Here are some alternatives to consider before you opt for a Redfin Realtor:
1. Houzeo
Houzeo offers the best combination of maximum savings, advanced technology, 5-star customer support, and listing exposure. It is a 100% online MLS listing website with thousands of customer reviews. Houzeo covers 47 states and DC, offering near-nationwide coverage.
Its services are consistent in terms of both quality service and pricing as compared to Redfin.
2. Zillow
Zillow is one of America’s top real estate websites, with over 200 million monthly visits. They are not a discount brokerage like Redfin. Instead, they offer agent matching services that help sellers find local traditional agents.
FSBO sellers can list their homes on Zillow by creating an account on their website. Please note that listing on Zillow is not the same as listing on the MLS. They also have a home value estimator, Zestimate, which is similar to Redfin Estimate.
» Redfin vs. Zillow: Check out which real estate website has the best reviews
3. Traditional Agent
Most real estate brokers are not salaried employees like Redfin. They earn through the commission they make from selling or buying a house for you. Specifically, this implies that such agents have your best interest in mind.
On the other hand, Redfin agents handle multiple clients at a time and work for a fixed income. This can be a reason for their inconsistent service quality.
» Top Real Estate Agents: Find out America’s top 10 real estate agents
Discount Real Estate Brokers Near Me
Looking for more options? We’ve compiled a list of the best discount real estate brokers in each state. Click on your state to check them out!
Other Options You Should Consider
- Sell to an iBuyer: Many iBuyers, like Opendoor and Offerpad, purchase hundreds of homes available in the market. iBuyers can be a great option if you’re wondering how to sell your house fast.
- Sell to Cash Home Buyers: Individual companies that buy houses for cash make all-cash offers, usually within 24 to 48 hours. Cash buyers let you skip the hassle of listing on the MLS, inspection, appraisal, etc.
- Sell For Sale By Owner: For Sale By Owner websites will help you list and sell a house by owner and save thousands in listing agent commission. Many FSBO websites will also get you listed on the MLS and help you with FSBO paperwork.
Bottom Line: Is Redfin Worth it?
We do not recommend Redfin for real estate transactions.
Most sellers who opt for discount brokers are looking for agent support at a lower commission. While Redfin’s 1.5% listing agent fee sounds good, it is a hefty price to pay if you are not paired with a suitable agent.
Buying and selling a house are complicated processes. The question is, are you willing to risk being paired with an agent who can cost you your dream house?
If you are looking for a cheaper way to sell your house, try Houzeo! Houzeo.com, a tech company, provides an unbeatable combination of maximum savings, cutting-edge technology, and 5-star customer support. We recommend Houzeo’s Platinum Package. This Virtual Full Service Package includes everything you need to make your home-selling experience a breeze!
Eager to Know How Houzeo Works?
We’ve got you covered. Check out the following video to understand how Houzeo works and why it is one of the best For Sale By Owner websites in the U.S.
» NEED MORE CLARITY? Read these exclusive Houzeo reviews and learn why it is one of the best FSBO sites in America.
Frequently Asked Questions
1) How accurate is Redfin estimate?
Close to accuracy, but not as good as Zillow's tool, Zestimate. Redfin estimate is a home value estimator tool, that helps you fix a selling price for your home by conducting a comparative market analysis.
2) Does Redfin buy homes?
No. Redfin used to buy homes through its iBuyer arm, RedfinNow. However, they were forced to shut down the operation in November 2022 due to losses.
3) How much do Redfin agents make?
Redfin agents are salaried employees, as opposed to the majority of agents who work for a commission. Hence, Redfin agents make monthly salaries like any other corporate employee.
4) Why is Redfin bad?
Redfin is bad because of its inconsistent quality of service. Although they advertise a 1% listing fee, it really is 1.5% unless you also buy a house with them within 365 days. Redfin also has a market-based minimum fee structure in place, due to which sellers may have to pay more than 1.5% listing fee.
5) How does Redfin work for sellers?
Sellers who sell with Redfin have to pay a lower commission of 1.5% as opposed to the standard 3%. You get assigned to a Redfin agent after you register on the website. Although Redfin offers full-service agents for low commission rates, Redfin's agent services are highly inconsistent across different markets. You may get assigned to a professional, expert Realtor or also get an unresponsive agent.
6) How much does Redfin charge to sell a house?
For first-time clients, Redfin charges a commission of 1.5% out of a home's listing price. For people who buy and sell a home through Redfin property services within a year get a discount rate of 1% only.
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