Redfin Reviews: The Reality of 1% Fees, Pros & Alternatives

Redfin reviews

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 for more than 90+ markets.

Today, we’ll look at:

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 get 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 can get to choose a listing fee between 1% and 2.5% depending on the services you pick.

At a Glance: Houzeo vs Redfin

Using cutting-edge technology, Houzeo has created a 100% online platform and reduced manual efforts substantially. With Redfin, you only get matched with an agent, the remaining process still stays offline. Both Houzeo and Redfin are still better alternatives compared to the traditional model of home selling and paying the full 6% commission fees.

Price ComparisonHouzeoRedfin
Listing Agent Commission / Fee1$3291% - 2.5%
Recommended Buyer Agent Commission2.5%2.5% - 3.0%
💰 With Houzeo, you save $12,000 more on an average U.S. home >> LIST NOW! <<

Let’s take a look at other features of Houzeo and Redfin, and then look at Redfin reviews.

Feature ComparisonHouzeoRedfin
Nationwide coverage
100% Online
Mobile App For Customers
Offers Directly to You2
Counter an Offer3
Request Highest & Best Offer3
Showing Management4
Expedited Listing5
Fast Listing Changes
Buyer Property Search Feature

Notes:
1 Houzeo’s tech-centric broker partners charge just the upfront flat fee, and no commission for all DIY plans (except in minimum service states)
2 Offers typically are routed to the brokers. Houzeo’s Offers Platform allows your broker to present the offer to you instantly
3 Houzeo Offers Platform allows sellers to Counter an Offer and Request Highest & Best Offers online
4 Houzeo Showings is available both on Houzeo’s website and on the Houzeo mobile app (learn more)
5 Available only on weekdays up to 1 pm, and only in select MLS’. After you’ve purchased the Gold or Platinum plans, email support@houzeo.com with the subject line “Expedited Listing Request: “. Service is free for Gold and Platinum plans customers

💡 Explore More: Learn Why Houzeo is America’s Best For Sale By Owner Website

Is Redfin Legit?

Yes, Redfin is a legitimate full-service real estate brokerage founded in Seattle, WA in 2004. It went public in August 2017.

Redfin Locations

Redfin is available in 90+ U.S. markets, giving it near-nationwide coverage. However, it may not have agents available in rural areas.

Is Redfin in Your Area?

If you want to compare available options in your area, you can also check out America’s low commission real estate companies.

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 reducing operating costs with a salaried team and upselling current customers on add-on services and premium support.

Redfin agents handle a large volume of customers amongst themselves. Redfin saves on marketing by promoting its real estate agent service using its mobile app and website. The critical limitation is here is ensuring consistent service quality. A tech-centric approach and high volume of customers limits the amount of attention and support Redfin agents will be able to provide during a sale or a purchase.

💸 Explore More: Will Real Estate Commissions Keep Falling Sharply?

Selling with Redfin

When selling with Redfin, you’re going to 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 otherwise even if the house is sold below the market value.

Although we can’t be quick to judge, there’s a significant amount of incentive that has been removed from Redfin’s agent earning. And 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’s Concierge Service, for example, will surely get the things done. You’ll get the full treatment expected from their agents, but for a higher price of a 2.5% listing fee. For sellers who are still unsure to try their service, you have to do some little digging and also need to consider the amount of money you are willing to risk.

Selling with Redfin Reviews

✔️ Key benefits of selling with Redfin

  1. Technology first approach makes the process transparent
  2. Savings on commission with a strong reputation among traditional brokerage agents
  3. Customer satisfaction transparency than other discount brokers

Many Redfin reviews claim that agents kept the process transparent and the mobile app has excellent features.

Redfin Reviews - Consumer Affairs - Linda

⚠️ Key risks of selling with Redfin

  1. Unpredictable service quality due to high-volume approach
  2. Risk of being paired with incompetent or inexperienced agents without supervision
  3. Initial offers would be lower since you list with a discount broker

Several Redfin reviews complained about the low service quality and broken promises.

Redfin Reviews - Consumer Affairs - Amit

Redfin Services

Redfin’s selling experience should be comparable to selling with a traditional brokerage. Your agent — or another Redfin member — will provide the support you need during each stage of the process, from deciding on a list price to signing your closing papers.

Along the way, they’ll provide services and support like:

  • Pricing
  • Professional photography, home staging
  • 3D walkthrough for virtual tours
  • Open houses, offer reviews
  • Negotiating with buyers

The biggest concern is that you may get less hands-on support with Redfin compared to a traditional agent.

Redfin Concierge

Redfin’s Concierge Service is a premium listing package that supports you to get your home market-ready. For a standardized listing fee of 2.5%, Redfin provides professional staging and house cleaning. It also includes the services included in its standard listing package, as explained above.

This package seems a bit expensive for what it includes. Sellers will most likely find it much cheaper to opt for the 1.5% listing fee and pay a la carte for extra services like house cleaning, 3D photography, staging.

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. You can find the minimum listing fees for different areas 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.

RedfinNow

RedfinNow is an iBuyer service that gives sellers a cash offer with no obligation on their end. Redfin pays cash for homes in select markets. Typically, sellers whose top priority is a quick and easy sale find this service lucrative. If you accept a RedfinNow offer, you can close in as few as ten days. And you’ll avoid the hassle of listing your home, navigating showings, and negotiating with buyers.

However, everything comes at a price. You will be charged a premium fee. Not to cover realtor commission, but Redfin charges a service fee that averages about 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.

Redfin Listing Fees: How Much does Redfin Cost?

Redfin offers a discounted 1.5% listing fee, than the typical 2.5-3%. That means higher dollar savings for higher home prices.

ServiceFee
Selling with Redfin1.5%
Buyer’s Agent Commission2.5% – 3%
Total4% – 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 buyer’s agent commission rate can lead to more days on 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 actually end up paying 4%-4.5% fees in total.

Is Redfin Really 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 both sell and buy with the company within 12 months. 

If you qualify, Redfin will reduce your listing fee to 1%. Assuming you sell first, this means Redfin will charge you a 1.5% listing fee, then refund the 0.5% difference once you purchase your new home. Many Redfin reviews claim that they’ve received

Redfin’s business model also relies in part on persuading existing customers to use other in-house services. These include:

  • 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 advertises a flat commission rate, but its discounts are dependent on the minimum fees that vary from $2,000-7,000 depending on your location. If you’re selling a less expensive home in a pricier market, Redfin’s commission could reduce or eliminate your potential savings.

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 which creates more potential for getting the highest price.

Owing to Redfin’s business model, Redfin 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 Reviews

Redfin has a mixed bag of reviews. Using Redfin certainly offers more advantages than traditional realtors but it’s important to look at the pros and cons before deciding. On Consumer Affairs, Yelp, and Google averaged out to 3.2 out of 5 stars.

Pros and cons

✅ Discounted Rates, Commission Savings

Selling via Redfin offers promotes cost savings because the Listing Agent’s Commission is reduced from the standard 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 when selling through a Redfin agent. If the buyer doesn’t have an agent representing them, then you save another 3% ($15,000) then that’s $25000 in your pocket!

Sellers choose Redfin for its low fees. And a consistent theme among many selling with Redfin reviews is that those savings are genuine.

Redfin Reviews - Yelp - Peter

✅ 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 also 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 choose to only search properties with 3D walkthrough and virtual tours. And you can even 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 the past tours and upcoming houses in Redfin’s mobile app, and many Redfin reviews state that this is a very useful feature. The in-app calendar eliminates the need for maintaining a schedule elsewhere, making this a holistic user-friendly experience.

Redfin Reviews - Consumer Affairs - Mehdi

✅ 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 Redfin 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 on the table.

⚠️ 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 our tools including 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 for getting 0.5% back if you use Redfin to buy your next home. Plenty 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 which would be available with a traditional brokerage. The Redfin Agent finder tool is useful to select an agent based on their experience and profile, but nobody can guarantee a seamless home selling journey.

Redfin Reviews - Consumer Affairs - Thomas

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 the required support on time at your fingertips!

Introducing the 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”

Start Your FREE Listing NOW!

⛔ 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 then make the listing edits, again – when they get to it. This offline, manual process increases the turnaround time, and further adds more days on market.

⛔ 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 not liable to a 1%-1.5% listing fee or offer 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.

Redfin Alternatives

Redfin vs Traditional Agents

The key 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. Although these may sound good for them, agents also tend to abuse and don’t work hard to fully satisfy their clients— why do your best if you’ll get paid anyway?   

Yet let’s not surmise ahead how Redfin agents can’t do their work well. The Concierge Service, for instance, offers the full 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 may seem questionable since the level of their commitment depends on the price you pay.

💸 Explore More: America’s Top Discount Real Estate Brokers (2022 Updates)

Redfin vs 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! What’s more, there are no hidden costs at closing and no listing agent commission.

A standard flat fee MLS charges a listing fee then just 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 a lot of 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

As one of the best real estate websites, Zillow shares some same 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, is 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 who have extensive experience and can 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. You need to weigh the possible pitfalls and benefits before choosing the tool to market your home. We looked at a bunch of Redfin reviews and realized that the in-house agents are both a blessing and curse. Although they also receive some great feedback, some clients are not happy—and it mostly pinpoints to the area of communication or responsiveness.  

So, is selling on Redfin a good idea? Well, it depends. If you’re fully 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 that.

Houzeo is the most advanced FSBO platform built on cutting-edge technology to minimize time and efforts of home selling and create a seamless journey. At a flat fee, you get access to tools only realtors can access, and avoid a hole in your pocket. Just list your property on MLS with us, sit back and relax.

Frequently Asked Questions

Is Redfin a reliable company?

Redfin is a totally legitimate company that has helped thousands of people buy and sell homes. So yes, it is a reliable company, but your experience will depend on which market your property lists on, and whether you get connected with Redfin's in-house agent or partner agent.

Is it a mistake to sell with Redfin?

Redfin's estimates aren't perfect, but they are relatively accurate. According to Redfin's in-house study, 64% of homes sold within 3% of Redfin's predicted price with an approximately 2% margin of error.

Is Redfin really cheaper?

When you sell with a Redfin Agent, you can expect to save between 20-30% in realtor commission fees. The average commission rate nationwide is approximately 5.45%. Buyer's agent fee: paid to the buyer's agent for bringing their client to purchase the home.

Are realtor fees negotiable?

No matter what you hear from real estate agents, commission rates are always negotiable. You don't HAVE to pay 6% when selling. The Department of Justice even promotes competition in real estate by offering rebates and adjusted commissions.

What is the difference between Redfin and Zillow?

Redfin is a discount brokerage, while Zillow is a marketplace. The latter also allows sellers to make offers directly rather than working with an agent.

Discount Brokers Flat Fee MLS For Sale By Owner How-to Listing & Marketing Sellers Guide

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