UpNest Reviews: Everything You Need To Know

UpNest Reviews

UpNest is an innovative real agent marketplace that connects home sellers and buyers with local full-service agents, and we’ll look at UpNest reviews today. There’s no direct cost to using UpNest, but the savings are marginal. Some listing agents will discount their commissions, but you will still be paying both commissions – almost 5%.

Today, we’ll cover:

What is UpNest?

Using technology and market data, UpNest connects you with agents in your area. These agents then compete amongst themselves to earn your business. You get custom quotes from multiple real estate agents near you for comparing fees, expertise, and specialties at a glance. The entire process takes a minimum of 24 hours, but since you have to interview several agents, it can take upwards of a week.

Once you fill in your basic details, you start receiving proposals from local agents. UpNest doesn’t allow agents to view another agent’s proposal which works similar to a blind auction or blink match. That’s the incentive for agents to reduce their commissions to attract home buyers and sellers. UpNest’s network is reliable and quick, but savings aren’t guaranteed since there are no pre-negotiated commissions or buyer rebates on your behalf.

If you are looking for max savings, strong technology, and superb customer service, check out Houzeo.com. Houzeo uses cutting edge technology to give you all the tools agents have to offer. You get the same exposure, but cut the commission in half saving you thousands of dollars!

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

At a Glance: Houzeo vs UpNest

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

Price ComparisonUpNestHouzeo
Listing Agent Commission / Fee12.5% to 3.0%$329
Recommended Buyer Agent Commission2.5% to 3.0%2.5%
💰 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 UpNest

Feature ComparisonHouzeoUpNest
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

Is UpNest Legit?

Yes, UpNest is a legitimate business with over 17K real estate agents and professionals under its hood.

Simon Ru founded UpNest after his work on a real estate company, Less Than 6 Percent. After launching in 2013, the company has built an impressive portfolio in the highly competitive American real estate industry. The company has offices in the San Francisco Bay Area and Indianapolis.

Is UpNest Free?

Nothing is free. UpNest claims it is free. But, it is a paid service. The payment, if you are a buyer or seller, is indirectly made by you. Yes, many Upnest reviews mention this twist. The partner agent UpNest will connect you with will pay UpNest 30% of their commission. If you are a home seller, you are paying for that commission from your proceeds. And if you are a home buyer, you are paying for that commission in the price of the home.

UpNest for Sellers

If you decide to sell via an UpNest agent, you will incur the realtor’s commission, exactly how you would have incurred it finding an agent on your own. UpNest agents decide their commission fees, typically 5-6% of the sale price, half of which goes to your listing agent, and a half to your buyer’s agent. This is where UpNest’s primary motivation, “Agents Compete, You Win.” comes in. Realtors offer compelling commission rates and compete against each other for your business.

UpNest for Buyers

For buyers, UpNest agents offer a commission rebate, also known as “home-buyer’s rebate”. The real estate agent applies a percentage of their commission earnings on the deal with the buyer. This portion of earning is shared with the buyer in form of credits so that they can be spent in limited ways, say, buyer’s closing costs. The agent proposals don’t explicitly mention the buyer rebate rates. Getting the rebate percentage clarified early on should be done to avoid conflicts or confusion later in the process.

💸 Learn More: Best Low Commission Real Estate Companies

How Does UpNest Work?

UpNest is essentially a matchmaker — You sign up with basic information about sale or purchase and get recommendations for the best real estate agents in your area. Signing up is free. There’s no return on wasted time and effort.

#StepDescription
1.Enter your preferencesGive UpNest details about location, property type, estimated value, and timelines.
2.Access Customer DashboardIn this customer dashboard you have the option to compare agents. Most users get instant proposals, while others may take hours or even days.
3.Your UpNest AdvisorYou’ll connect with an UpNest advisor who breaks the ice with you about your agent preferences, and explains what the UpNest journey looks like.
4.Final DecisionAfter comparing received proposals, you can interview these agents and sign with whoever offers you a better deal. If you don’t like any matches, you can request more or walk away from UpNest.

When matching agents with customers, UpNest analyzes thousands of agents’ performance data. After the analysis, UpNest offers the best selection for its users. The agent matching process is automated. The instant proposals lack human oversight. This is where the UpNest advisor comes in. They look at initial matches and may send new ones based on what you need. They check in periodically to keep things running smoothly.

How does UpNest Make Money?

When you buy or sell properties via UpNest’s partner agent, UpNest takes a share of that agent’s commission. Also called a referral fee, this is how all agent-matching services make money.

UpNest also generates income through its home loan services. However, it is better to conduct independent research about different financing options before signing up with UpNest simply because you like your UpNest agent.

Why do Agents work with Agent-matching Services like UpNest?

Real estate agents spend a lot of time and money on marketing to attract business. Not every deal closes, so the return on investment for these efforts is not certain. Additionally, it takes time away from the realtor’s primary goal, which is to close more deals.

Signing up with an agent-matching service like UpNest delivers a steady stream of new prospects to the agents at no upfront cost. Compared to other marketing tactics and advertising, joining the UpNest agent network and paying referrals after a successful sale is a cost-effective way for realtors.

All in all, UpNest makes creates a lead-generating engine for agents to save on marketing time and efforts just by agreeing to a referral fee that’s paid when they close deals via UpNest.

UpNest Reviews

UpNest scores 4.3 out of 5, with commendable reviews. We assume this is because of an intuitive customer dashboard, and highly-specialized agent network. Folks have raised concerns about inconsistent and marginal savings compared to similar services in the market.

UpNest Pros and Cons

✅ No Obligation Service

UpNest delivers agent-matching services at zero commitment. Within 24 hours timeline after signing up, UpNest will then send you multiple agents you can choose from. You also receive commission quotes in your area and can compare the rates, services, and reviews from the said referred agents.

You can check the agent’s proposal and other details, without having the obligation to hire any of the referred agents. It’s your decision if you want to continue hiring or find another option. If nothing fits, you can simply walk away.

✅ High-quality Agent Network

UpNest partners with thousands of top agents from leading national brokerages and boutique agencies across the U.S. They don’t charge agents advertising, or membership fees to join their network, so all agent matches remain unbiased, purely based on your criteria and preferences.

UpNest’s selective nature in recruiting partner agents is a key factor in them having highly-qualified realtors and specialists of the industry. Screening and evaluation of partner agents are enforced rigorously. UpNest agents must meet performance criteria, such as:

  • Current real estate license
  • Having three years’ industry experience
  • Being in top 5% in terms of sale in local area
  • Minimum six transactions in the past 12 months

✅ User-friendly Customer Dashboard

UpNest’s customer dashboard is intuitive and makes it easy to compare agent matches. While selecting an agent for selling your home, you’ll have to evaluate important information like:

  • Commission rates
  • Total sales in your area
  • Customer reviews
  • Years of experience
  • Services offered by agent, such as home staging, landscaping, etc.

The proposals you receive from agents are comprehensive, and every little detail helps in streamlining the agent shopping process. This single-screen facilitates comparison shopping and lets you can evaluate the matched agents based on different criteria.

The user-friendly customer dashboard also features options to contact the matched agents, or your UpNest Advisor, simply with a click, unlike others like Ideal Agent, who provide this information via phone or text.

⛔ Marginal or Zero Savings

UpNest was created with the hope of transparently matching agents while keeping the process simple. But, systems are meant to fail and evolve. Although UpNest’s marketplace model should’ve created huge savings, past sellers have claimed that nothing is guaranteed.

This could be because the commission rates aren’t pre-negotiated. The lowest listing fee is ~2%, compared to 2.5-3%. In theory, agents compete for your property, which encourages them to offer lower rates. However, agents submit proposals without having any idea about other agents’ rates, so they can’t lower their rates too much, since that’s a loss for them.

While UpNest’s model is innovative, the negotiation ultimately relies on you, since they pre-negotiate rates and commissions. In other words, you may end up paying more commission, or rebate rates won’t go low as you expected. This is a huge downside considering you’re here for a better deal.

Since nothing is guaranteed, savings can be thousands of dollars or effectively zero.

💸 Learn More: America’s Top Real Estate Brokers (2021 Rankings)

⛔ Inconsistent Customer Service

Spotty customer service is unattractive, and UpNest is yet to tighten the harness on their support team. From the Upnest reviews we’ve seen, it’s evident that some representatives are extremely helpful and knowledgeable, while others struggled to answer simple questions.

Say you run into an issue with your UpNest agent, and facing a contract dispute, you would want your UpNest Advisor to come in and clear the air. The complexity of real estate makes it essential to ensure that your customer service teams are above their game.

Also, UpNest Advisors don’t own licenses, so they aren’t equipped with unlimited knowledge of the real estate industry. With limited support hours and website chatbots that don’t respond promptly, UpNest has a negligent customer service process.

UpNest Buyer and Seller Reviews

The Better Business Bureau gives UpNest a 4.8 average from their 128 customer reviews. Some UpNest reviews laud fast connection with real estate agents, and even found the realtor the best fit for them. Others are not happy with the commission negotiations and complained about the mediocre services they received. Here are some positive and negative reviews.

So, there you have it.

The above reviews show what people have experienced when they did business with UpNest. You can tell that UpNest has its disadvantages when you try their service. If you want to save more and sell your house fast, Houzeo can help you get the cost-saving you expect, all the while having your freedom to partner with a qualified top agent in your area.

💡 Explore More: All you need to know about selling your house

UpNest and other Alternatives

UpNest vs Houzeo

Houzeo is a great alternative for selling or buying a home. It’s considered as America’s #1 For Sale by Owner and Flat Fee MLS platform that makes the home-selling process seamless and easier. UpNest offers limited agents, while Houzeo gives you the freedom to choose your own agent and enjoy your custom-made package services.

Most of the documents and paperwork are automated and digitized to remove the burden of filling more and more papers. UpNest has speedy referrals and their own agents, and Houzeo has real savings with no hidden costs at all. You can list your home for sale by owner starting at only $199, the basic package. If the buyer has no agent, you don’t have to pay any commission.

💸 Learn More: Houzeo Reviews: The Reviews You NEED to See

UpNest vs Redfin

Unlike UpNest that refers their own agent, Redfin is more of like a support team in which they guide you throughout the process. Redfin is a real estate brokerage platform that offers a local support team and agents who will work with you from finding homes to closing the deal. It provides discounted fees for its available services. They’ll help refer you to several professionals—home appraisals, real estate attorneys, etc.— to get your property fixed, upgraded, or landscaped properly.

Redfin provides services similar to a traditional full-service realtor yet with a low-cost commission. The downside with choosing Redfin is you can’t work with your agent on a personal level. A group of individuals will assist you so they can’t personalize your experience. Redfin seems only to have agents in some states, and is not currently available in Louisiana, Alaska, Montana, North Dakota, South Dakota, and Wyoming.

In a nutshell, Redfin works like a traditional realtor. But, with its own Redfin agents and support team. In which case, other people may find displeasing. People get the feeling that they’re not part of the overall process.

💸 Learn More: Redfin Reviews: Is it TRULY 1% Commission Fee?

Bottom-line: Should You Choose UpNest?

There seems to have no upfront cost or fee using their service. But, no. UpNest charges a referral fee. This fee is for their agents. If you’re selling with UpNest, you have to pay the commission fee for your agent and the buyer’s agent. In terms of cost savings, there’s no assurance you’ll save money since most of the pricing and fee depend entirely on the agents.

If you’re looking for guaranteed savings, Houzeo makes it possible for you. Our basic and premium package provides more value than other real estate platforms. With a user-friendly interface and digitized documents, the process is faster and easier.

Frequently Asked Questions

Which For Sale By Owner (FSBO) Website is the best?

These are the best FSBO websites based on reliability and credibility:

  1. Houzeo
  2. FSBO.com
  3. Fizber
  4. Zillow & Trulia
  5. For Sale By Owner
  6. Craigslist
  7. Facebook Marketplace
  8. Homefinder
  9. Beycome

Does UpNest charge a fee?

Not directly. UpNest is free for home buyers and sellers, however, for every successful sale or purchase done via the platform, UpNest receives a hefty 30% referral fee. This is calculated based on the commission that the UpNest agent receives from the buyer or the seller.

Why do realtors get 6 percent commission?

Since the 1950s, the National Association of Realtors has used a “suggested” commission rate for realtors, i.e. 6% of the home's selling price. They never reconsidered changing that rate, but you can save the listing agent's commission (3%) by listing your home at a flat fee with Houzeo.

Can you negotiate realtor fees?

There's no law stopping you from negotiating realtor fees, so you can attempt it. Offering too low commission can cause realtors to refuse your property, and back out as your listing agent, further delaying the sale of your property.

Flat Fee MLS For Sale By Owner Reviews