Close your house within 10 days! Or so they say. Redfin Now, the iBuyer arm of Redfin, sells homes for a cash offer. But does it beat its counterparts Offerpad and Opendoor? Read on to find out.
Is RedfinNow Worth your Money?
- Pros: RedfinNow is an excellent option for quick cash offers and quick closing.
- Cons: The high service fees and lack of verified consumer reviews, makes it difficult to trust Redfin Now’s cash offer.
- Our Take: You can escape the uncertainty of cash buyers by listing your home on the MLS and selling it quickly in competitive marketplace. Even if you are not a licensed broker, flat fee MLS services like Houzeo allow you to advertise your property on the open market. View your savings.
What is Redfin Now?
In 2017, Redfin Now joined the Southern California and San Diego real estate markets. You can get a cash offer from Redfin Now in as little as a week. The home is prepped for the market and listed for profit on the parent firm Redfin, a low commission discount broker, once the offer is accepted.
As of 2021, Redfin Now owned 292 homes sold on Redfin. The company is present in over 10 states and is rapidly expanding.
Being an iBuyer offers both advantages and disadvantages. Redfin Now has strong standards and criteria in place in order to sell for a profit. Although a house can be sold in as little as two weeks, it may not be the greatest method to save money. Their costs include a high percentage of service fees and repair bills.
You can additionally reach cash buyers quickly and save money by using MLS listing websites.
At a Glance
|💰 Redfin Now Service Fees||5% – 13%|
|💰 Repairs||0 – 3%|
|💰 Listing Fee||NA|
|💰 Closing Costs||1%|
|⚡Closing time||10 – 90 days|
|⚡Home prep criteria||Sell as is|
|💲 Double Mortgage||NA|
|💲 Seller Discounts||NA|
Is Redfin Now Legit?
Yes, Redfin Now is a legitimate iBuyer that makes an instant cash offer for your home. As of today, Redfin Now is quickly gaining momentum like its counterparts Offerpad and Opendoor, having a presence in over 20 markets.
» Redfin Reviews: Check out its Pros, Cons, and Alternatives
Are You Eligible?
The most significant advantage that iBuyers have over traditional sales is the speed you can sell your home. It eliminates the hassle of home preparation with the highest level of reliability. However, your home must meet the stringent purchase criteria.
✅ You are eligible if:
- If your lot size is under half an acre
- Mentions a clear title
- If the house is valued between $150,000 – 1.5 Million
- Is in good condition with minimal to no repairs
- Is owner-occupied or vacant
- In the case of tenant-occupied properties, they must be vacant before escrow
❌You are not eligible if:
- It is a mobile home
- The property has an outstanding mortgage higher than the market value
- If it has significant damage
- If it has multiple structural issues
- The total lot size is more than an acre
- If it has unpermitted conditions
You can additionally check your eligibility by entering your home address on the Redfin Now website directly.
Redfin Now Locations
They have expanded to multiple cities and over 10 states. Redfin Now actively buys eligible homes for cash in:
How Does Redfin Now Cash Offer Work?
Selling your house on Redfin Now takes anywhere between 10 – 90 days. Their selling process is fairly simple and straightforward.
Request » Cash offer » Inspection » Final offer
Let’s break it down further:
Enter property details on the website
Enter your complete address on Redfin Now’s main page to check your general criteria. Upload photos that detail the property. Answer questions to prove eligibility. If it passes the eligibility criteria, you will receive a preliminary offer from representatives within a few days. This also includes your service fee.
Once the initial offer has been accepted, Redfin Now can organize an inspection. They pay for the inspection, which is completed within a week of the offer being accepted. A full report on the house’s issues will be sent to you. Before making you a final cash offer, it analyses the cost of repairs and the market value of your home. If you disagree with the estimate, you can also cancel the sale.
Redfin Now final cash offer
This final offer comprises a comprehensive market study, the service fee of 5 – 13%, and the cost of repairs anywhere between 0-3%, all of which have been deducted from the original offer. Bear in mind, that you will also be responsible for paying the closing costs of 1%.
After your property ownership is confirmed you will be presented with Redfin Now’s final cash offer. Once you accept, you can sign the sale documents, and pick your closing date between 10 – 90 days. In case of emergencies, Redfin Now offers the flexibility of renting your house for 60 days after successfully closing.
Redfin Now Pricing
Pricing will always be determined by the market and the condition of your home.
Total Fee Breakdown
|Service fee||5- 13%|
|Repair estimate||0 – 3%|
|Closing cost estimate||1%|
|Total||6 – 17%|
Can You Negotiate With Redfin Now?
No, you cannot negotiate. If you find an error in their estimate, you can request an updated offer. You will get five days to finalize and proceed.
Calculate Your Savings: Traditional Agent vs. RedfinNow vs. Houzeo
Redfin Now Reviews
|Simplicity||Many Redfin Now reviews expressly mention how simple the selling process is, from requesting an offer to close.|
|Reliability||Once you agree with the estimate, you will instantly receive a reliable cash offer|
|Quick closing||You can pick your closing days and successfully close the sale within 2 weeks.|
Positive Customer Redfin Now Reviews
|Strict criteria||The eligibility criteria for Redfin Now are strict and do not approve houses quickly.|
|Unreliable Cash Offer Estimate||Redfin Now is not upfront about the service fee of the market. There is no way of knowing if you are paying higher or lower|
|Negative Consumer Redfin Now Reviews||Many Redfin Now reviews online mention the lack of promptness at receiving a preliminary offer and payments unless personally contacted or involved by an outside party.|
Negative Customer Redfin Now Reviews
There you go! Redfin Now has had a consistent reputation for adding unnecessary service fees that defeat the purpose of the cash offer completely.
Redfin Now Alternatives: How Do They Compare?
Redfin Now vs Opendoor vs Offerpad
|Average rating on Trustpilot||2.8||3.6||4.6|
|Service Fee||6 – 12%||5%||5%|
|Repair costs||0 – 3%||Varies||Varies|
|Cancellation charges||None||None||1% (4 days after|
Finding cash buyers on the MLS
Listing on the MLS is cost-effective, quick, and reaches all licensed agents in the state. Although Redfin Now provides a quick closing, you will incur thousands of dollars in service and repair costs. The MLS, like the real estate market, is competitive. As a seller, you will frequently receive multiple bids in the form of instant cash offers. So why not opt for the option with a one-time flat fee?
Houzeo vs Redfin Now
Let’s have a look at some of their features:
|FEATURE COMPARISON||HOUZEO||REDFIN NOW|
|100% online process||✅||❌|
|Offers sent directly to you||✅||✅|
|Counter an offer||✅||❌|
|Request the highest & best offer||✅||❌|
|No Closing Fees||✅||❌|
Introducing the Houzeo Mobile App!
- View your listing
- Manage your showings online
- Review and compare offers
- Counter an offer
- NEW! Buyers can now search your property and save it in “Favorites”
Redfin Now vs Opendoor
The services they offer are similar but their function is completely different. Both have strict criteria with Opendoor having a lower acceptance rate. Redfin Now also charges a high service fee percentage and lacks reliability. In terms of markets serviced, Opendoor serves a wider audience as compared to Redfin Now.
Redfin Now vs Offerpad
Offerpad, like Redfin Now, is a newcomer to the market. However, they serve a smaller number of locations than Redfin Now, which has a 31-market reach. However, Offerpad charges a significantly lower service fee and provides seller concessions, whereas Redfin Now does not. They are also both free of cancellation fees.
Is This iBuyer Worth Your Time?
No. It is not the case. Because of the high service fees and lack of verified consumer reviews, it is difficult to trust Redfin Now’s cash offer. There are many other iBuyers with lower fees and a better reputation. Redfin Now primarily operates in markets where consumers want to sell their homes in a matter of days. Fortunately, selling for cash isn’t the only way to get a quick sale.
You can always choose listing services such as Houzeo, which has digitized and revolutionized real estate transactions. The website is user-friendly for beginners because it is entirely online. Get your listing today and choose the agent you want to work with!
Prices can always be compared so that you can make an informed decision. Not to mention, Houzeo saves you over $15,000 in listing fees alone!
Frequently Asked Questions
Does Redfin Now charge fees?
Yes. Redfin Now charges between 6- 17% in service, repair, and closing fees.
How does Redfin Now work?
Give your home details, receive a no obligation offer, have a home inspection, receive a final offer, and close in 10 to 90 days.
What are the alternatives to RedfinNow
Right now, there are some major players in the market who offer an upfront cash offer. The top five are as follows: 1)Opendoor 2) We Buy Ugly Houses 3) Offerpad 4) We buy houses and 5) MarketPro HomeBuyers. More information can be found in our review of the 13 best cash-paying companies in 2022!
What is included in the home inspection?
The first inspection is carried out by a third-party inspector. It takes three hours to check and test all of the house's systems and conditions. To create a comprehensive repair addendum, structural and compliance issues are reviewed. Depending on the findings, you may be subjected to additional inspections, after which you will be given the repair costs and inspection report.
Is Redfin Now a brokerage?
Redfin Now is a subsidiary of Redfin. Agents do not represent sellers, but Redfin Now.