Redfin is a popular discount brokerage that helps you sell for only 1.5%. They also provide a 1% discounted listing fee for buying and selling with them.
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- You pay only 1.5% instead of the traditional 3% listing agent fee
- Buyers can browse through property listings on Redfin's mobile app
- Redfin agents lack incentives to maximize sales
- Agents may not be as resposive because they handle several clients
Redfin is one of the largest discount brokerage companies in the US. They offer sellers a 1.5% listing fee instead of the traditional 2.5% - 3% commission. Redfin also attracts buyers with their compelling rebates at closing.
Redfin has another 1% listing fee alternative. If you sell and buy your home with a Redfin agent, you can avail of this 1% discounted commission.
But these savings come at a cost. Redfin agents handle multiple clients at a time. This can result in a lack of personalized service. Therefore, you might have to manage most of it yourself.
✍️ Editor's Take: We recommend a tech-first discount real estate company like Houzeo over Redfin due to its cost-effective approach. Compare Redfin vs. Houzeo.
Is Redfin Legit?
Yes, Redfin is a licensed discount brokerage. David Eraker, David Selinger, and Michael Dougherty founded the company in 2004. In 2006, Glenn Kelman took over as CEO.
Since 2017, Redfin is a publicly traded company. Therefore, they must comply with additional government regulations and enforce transparent business practices.
However, Redfin is currently operating at a loss. Its enterprise value has decreased from 5.08 billion at the end of 2021 to 2.12 billion in 2023. Furthermore, customers express dissatisfaction with Redfin agents for not offering personalized service.
Does Redfin Serve in Your Area?
Redfin connects home sellers with agents across the United States. Their services are available in over 100 real estate markets, spanning 49 states + Washington DC.
|Northeast||Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont|
|Midwest||Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Ohio, South Dakota, Wisconsin, Nebraska|
|South||Alabama, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia, Arkansas, District of Columbia|
|West||Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, Alaska, Hawaii, Wyoming|
How Does Redfin Work?
Redfin offers buyers and sellers access to useful online tools through their website and mobile app. Moreover, Redfin agents are available to assist you throughout the selling and buying of your home.
At Redfin, you work with a team rather than a dedicated agent. As a result, you may not get the same level of service from a Redfin agent as you might expect. Several Redfin real estate agent reviews raise concerns about the same.
Selling a House With Redfin
When selling your home with Redfin, expect a similar experience to working with a traditional brokerage. A Redfin agent will guide you through the entire process, including:
- Pricing Your Home: Redfin agents will ask about your selling motivation to price your home. Then, they will assist with setting the perfect listing price.
- Comparative Market Analysis: Redfin gives you a comprehensive market analysis, finds selling features of your home, and suggests ways to increase your house value.
- Your Listing Debut: Your Redfin agent will connect you with professionals for landscaping, cleaning, and home staging before presenting your home to potential buyers.
- Professional Photos and 3D Tours: Redfin offers free professional photography and a 3D Walkthrough, allowing buyers to tour your home virtually.
- Open Houses: Redfin agents will host an open house for buyers searching your area.
- Owner Dashboard: Redfin also offers a private owner dashboard to sellers. It allows you to monitor the number of people viewing your property and the progress of the Redfin agent on the sale of your home.
- Accepting an offer: The Redfin agent will guide you through the offer and negotiation process, including any necessary negotiations for home inspections and contingencies.
|✅ Discounted seller broker costs||❌ Lack of support|
|✅ Easy-to-use platform||❌ Premium packages limit savings|
|✅ Agents with high brand recognition||❌ Unreliable agents|
Buying a House With Redfin
Redfin offers buyer rebates on a case-by-case basis. So, we recommend you contact your local Redfin office. Additionally, Redfin agents reduce listing fees from 1.5% to 1% if you buy and sell within 12 months.
Are Redfin Agents Good?
Yes, for the most part, Redfin agents are good and experienced. They hold licenses and undergo comprehensive training.
The main difference between Redfin and full-service agents is their fee structure. While traditional agents work on a commission, Redfin agents receive a fixed salary. Therefore, traditional agents are incentivized to sell your house for a higher price. This may not be true for Redfin agents.
Some other key differences between them include:
- Redfin agents have multiple customers at once.
- Unlike traditional agents, Redfin agents are salaried.
- Technology plays a significant role in Redfin's process.
- The Redfin approach relies on teamwork.
🚨 Important: Redfin might help you save money compared to working with a real estate agent. However, it's vital to consider the potential trade-off of sacrificing quality service and support.
Aside from home sales preparation and mortgage lending services, Redfin offers other in-house services.
Redfin Concierge Service
Redfin offers a Concierge Service that prepares your home for the market. It costs 2.5% and includes professional staging and house cleaning. However, you may find it more economical to choose a 1.5% listing fee and pay for additional services.
Redfin Premier is available for homes worth over $1 million in select markets. This package comprises all the services of Redfin's Concierge Service at the regular 1.5% listing fee.
RedfinNow, an iBuyer service that offered cash for homes in select markets, is no longer operational. The company has officially announced the closure of this subsidiary, via a company memo dated November 9, 2022.
Redfin Full Service
Redfin Full Service is the basic plan for sellers. In this case, you pay a 1% listing fee when you sell and buy. However, Redfin's listing fee is subject to market-based minimums.
Redfin Partner Agent
Redfin connects you with a partner agent in areas that don't come under their direct coverage. Their partner agents are not salaried employees and do not work exclusively with them. Therefore, they may charge a commission higher than 1.5%.
How Do You Save With Redfin?
When you sell your house with Redfin, you can expect to pay a total commission of around 4% to 4.5%. This is lower than the 5-6% commission that traditional agents charge. Therefore, for a $500,000 sale, that’s $22,500 off your profit.
The seller's fee is discounted and doesn't include the buyer's agent fee. If the buyer's agent fee is 2.5%, the seller paying a 1.5% listing fee will pay a 4% total fee. The listing fee may increase by 1% of the sale price if the buyer is unrepresented.
Even after a discounted price you are still paying a 4% commission and doing the majority of work. Instead, list with Houzeo's $399 package, where you will only pay the buyer's agent commission at closing.
How Does Redfin Compare With Houzeo?
For most home sellers, Houzeo offers far better value with no nickel and dime. Like Redfin, Houzeo also provides nationwide coverage but you save more in commission.
|100% Online Process||✅||❌|
|Offers Sent Directly to you||✅||❌|
|Countering an Offer||✅||❌|
|Request the Highest & Best Offer||✅||❌|
|Quick Listing Changes||✅||❌|
|Buyer Property Search Feature||✅||✅|
Most positive Redfin reviews praise the agents and their user-friendly website. However, the complaints and negative Redfin reviews highlight the company's inconsistent quality of service. These make working with Redfin seem like a hit-or-a-miss situation.
Redfin Positive Reviews
✅ Rosalind compliments the customer service provided by Redfin. According to her, Redfin made the property search easy for her.
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 praised Redfin’s team for their exceptional work in making the selling process effortless. He said the agent assigned to him was dependable and legitimate.
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
Redfin Negative Reviews
❌ Liz was disappointed with the unprofessional conduct of her assigned Redfin real estate agent. According to her, the agent caused a delay in the sale of her home.
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.
❌ Philip’s experience with the Redfin agent was horrific. The agent he received was unprofessional and lacked market knowledge.
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 Pros and Cons
It’s vital to weigh the advantages and disadvantages before selling your home with Redfin. Here are the pros and cons to see if they are the ideal choice for you:
👍 Redfin: Pros
Here are some advantages of choosing Redfin:
- Advanced Technology: The main focus of Redfin is their state-of-the-art technology and mobile application.
- Agents at Low Commission: Redfin offers a full-service package for a 1.5% commission. You can save thousands of dollars compared to the standard 3% listing commission.
- Buyer Rebate: 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 only 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.
👎 Redfin: Cons
Redfin has some drawbacks that could adversely affect your experience.
- 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.
- 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 has a limited number of agents on its roster. You will be automatically assigned an agent without the option to choose.
- Lack of Personalized Services: Customers express dissatisfaction with Redfin agents due to their inability to offer personalized service.
- Poor Customer Reviews: Customers have complained that agents are often unreachable and unprofessional.
Redfin vs. Competitors
Redfin vs. Zillow
Redfin is a good choice for low commissions. Their easy-to-use interface and in-house agents are an ideal choice for first-time sellers. However, some Redfin reviews highlight poor customer service and a delayed listing process.
On the other hand, Zillow offers good visibility, but sellers have no say in the selling process. Moreover, free FSBO listings get less exposure, and buyer leads only go to member agents.
» Redfin vs. Zillow: Check out which real estate website has the best reviews.
Redfin vs. Houwzer
Houwzer shares a similarity with Redfin by employing a team-based approach to generate savings for you. However, if you prefer a dedicated real estate agent, Houwzer and Redfin may not be your top choices.
Houwzer boasts a lower rate of just 1% surpassing Redfin's 1.5% commission. Howzer does provide better value than Redfin. However, it is only available in select markets on the east coast.
Redfin vs. SimpleShowing
SimpleShowing offers a comparable experience to Redfin at a lower cost. The company provides a 1% commission for Florida, Georgia, and Texas sellers instead of Redfin's 1.5%. However, SimpleShowing has a minimum fee of $5,000.
Redfin and SimpleShowing use technology to simplify the sales process. However, SimpleShowing has fewer agents than Redfin, which mean fewer options for you. Also, be aware that the 1% advertised fee may vary based on the value of your home.
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: 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 list and sell a house yourself, saving thousands in agent commissions. Many FSBO websites will also help you with the paperwork.
Is Redfin a Good Option For You?
Redfin is one of the largest online discount real estate brokerage companies in the United States. Along with their low commission fees, the map-based home search tool is also quite practical.
Most sellers who choose discount brokers seek dedicated agent support. Despite Redfin's reasonable 1.5% agent fee, a lack of support is glaring in their reviews.
If you want a more affordable way to sell your house, we recommend Houzeo.com. As a tech company, Houzeo provides an unbeatable combination of maximum savings, cutting-edge technology, and top-notch customer support.
We suggest considering Houzeo's Platinum Package. It includes everything you need to make your home-selling experience effortless.
» Houzeo Reviews: Check out why more than 3,500 home sellers have rated Houzeo 4.9 stars out of 5 on Google Reviews and Trustpilot
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.
What is Houzeo?
An overview of what the platform is all about
Frequently Asked Questions
1. What is Redfin?
Redfin is a real estate brokerage and online platform that offers tools and services for buying and selling homes. It provides users access to property listings, market data, and virtual home tours, along with connecting them to local real estate agents. Redfin aims to streamline the real estate process by combining technology and expert assistance.
2. Does Redfin really offer a 1% fee?
Yes, Redfin offers a 1% listing fee for sellers in some markets where eligible. This fee covers the services of a Redfin agent to assist with the home-selling process. However, it's important to note that additional fees, such as buyer's agent commission and other costs, may apply. Check out how Redfin works.
3. Does Redfin really save me money?
Yes, Redfin's lower fees and online tools can save you money compared to traditional real estate methods. However, actual savings depend on various factors. Check out how Redfin saves you money.
4. Are Redfin reviews good or bad?
Redfin reviews range from positive to negative, reflecting diverse experiences with their services. If you use Redfin's services, read reviews and consider your priorities and preferences. Check out Redfin reviews.
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After receiving a reply from the owner's attorney via the Attorney General's office, we now know definitively that Jenny Dedrick and Refin were responsible for us losing the house that we HAD A PURCHASE AGREEMENT ON. As per their attorney, we were to have signed paperwork on or prior to 1/4/2023. This paperwork was never presented to us, therefore, it was never signed. Since this paperwork was not signed, the owners cancelled our purchase agreement and moved forward with another buyer. After Jenny Dedrick found out about the other offer, she asked us if we would amend the price of our house so our buyer could be non-contingent. This was on 1/10/2023. It was already too late, but we didn't know that. We agreed to amend the price from $345,000 to $340,000 netting us a loss of $5,000 on the sale of our home that we ALREADY HAD A PURCHASE AGREEMENT ON. The inspection on the purchased property had already been done and paid for. Jenny assured us for over a week that we would not be losing the house, and that we did not need to sign the cancellation agreement. The stress during this time was incredible. We looked for our "perfect retirement home" for a year and a half and it looked like we could be losing it. We had ZERO intention of moving until we found the perfect home! After all was said and done, we had sold our home and had no home to move into. We were dividing our belongings into 3 parts. One part that could go into a POD for storage (things that could freeze), one part that had to go into a heated storage unit, and things that we would have to bring with us into our temporary housing while we started a new home search. This was another highly stressful situation; looking for places to store all our things, pricing it, figuring out how to move it and not knowing how long we'd be without a home. We found a home, but it is NOT the home we would have chosen if we did not need a house immediately. Because we already had a deadline to be out of our home, we did not have time to get an inspection on the new home. Redfin reduced some closing fees by $2500. We are still out $3000 (house reduction price and inspection). We asked Redfin to pay us the $3,000 that we lost due to their realtor's error. We also asked Redfin pay for an inspection on the home that we had to buy so we would have somewhere to live. We are particularly concerned about radon since this home has a well and a basement. We have gotten NO responses to our requests to get our lost money returned! This was a gross error on her part and we are still in shock that we are in a home that isn't the perfect home for us simply because we needed a place to live. It is unconscionable that we could lose a home and our hard-earned money through absolutely no fault of our own, but due to a professional's error. We are still heartbroken every time we look out a window and see a neighbor instead of the 4 acres of woods and the river that we had originally purchased. User's recommendation: Do NOT use Redfin, especially Jenny Dedrick
Pat was very thorough and communicated nicely. Overall great experience!
Michael promised the same service for even less commission. I can only tell you that he lied. If my experience was typical of Michael’s sales work, he’s never ‘sold’ anything, he’s an order taker. After that interview and after signing the listing agreement, I never saw him again. No one from Redf
Great acumen and communication. Highly recommended!
Efficient and attentive.