How Selling With Redfin Works (Review of the Good and Bad)
What You Will Read In This Article
Are you feeling nervous about selling your home? Selling a home is one of the most important tasks we undertake in our lifetimes. There is a great deal of work and research required when deciding to sell a home. At times the home selling to-do list may seem endless, especially if you are a first-time seller.
The to-do list for selling a home can seem unnecessarily long and complicated to the uninitiated. A few of the things you will need to do include:
- Choose a listing agent
- Determine your home’s value
- Prepare your home for sale
- Advertise your home
- Show your home
- Receive offers to buy and negotiate
This is not an exhaustive list, but it does give a general idea of the work involved when selling a home. What if we told you that technology could help streamline this process?
With the advent of the internet, we have discovered new ways to sell homes. Redfin is one of the new ways. Redfin harnesses technology to assist you with the home selling process. With Redfin, you will find the tools you need to sell your home in one convenient location.
Selling your home on Redfin is a digital experience. Your first step will be creating an account on Redfin. Redfin makes this process relatively painless. You can use Facebook, Google, or an email address to register. They also give you the option to add the email of a buying or selling partner. This function allows you to share favorites, comments, and saved searches.
Redfin has a network of agents located throughout the country ready to assist you with each step of the home selling process. These agents pride themselves in using Redfin’s technology to achieve results. In this article, we will introduce you to Redfin and review how this discount real estate brokerage works by using technology to change the traditional home selling process.
Do You Want To Sell A Home And Save On Commissions?
Did you know that we can help you save a lot of money when selling your house? Money that you can put towards moving, buying a new house, paying off debt, a much needed vacation or anything else you want. ISoldMyHouse.com has 3 ways for you to sell your house and NOT pay high commissions.
- Sell It Yourself With Our Flat Fee MLS Listings
- Sell With Top Local Agents With Negotiated Discounts on Commissions
- Sell To A Pre-Qualified Cash Buyer
What Is The Difference Between Redfin and Traditional Agents?
Most sellers would like to save money on realtor commissions. Listing a home as “for sale by owner” has always been a popular way to avoid these fees. However, those who have attempted to sell a home themselves know this is often a difficult task. This is where Redfin comes in.
With Redfin, you get the perks of having a traditional agent while saving money. Unlike traditional agents, Redfin agents do not work for commission. When a traditional agent sells a home, they typically take home 3% of the selling price. Redfin agents are paid a base salary. They are paid a bonus based on customer satisfaction, giving them an incentive to offer clients outstanding customer service.
Since Redfin agents don’t receive a commission from your home’s sale, the seller saves money. The typical brokerage commission is 6%, with 3% going to the buyer’s agent and 3% going to the seller’s agent. The seller pays both the buyer and agent fees at closing. Depending on the Redfin service you select, a seller may save significant money on costs when they sell their home using Redfin.
Selling your home on Redfin is a digital experience, unlike with traditional agents. Millions of potential buyers will see your listing on Redfin. The website even has a tool that allows you to track how many views your listing receives. You can also check out how many buyers are looking at homes similar to yours.
If someone is interested in buying your home, their agent will contact your Redfin agent. Your Redfin agent will guide you through the entire selling process. When you have accepted an offer, Redfin will send an inspector to do a structural inspection of the home. You can expect closing to take place pretty quickly thereafter. The entire process typically takes less than a month.
What is Redfin’s Commission Fee?
Discounted commission fees are Redfin’s biggest draw. Redfin’s commission is 1.5%, in several markets such as Washington, DC, the commission drops to 1%. That’s up to one-third less than what most traditional brokerages charge.
Using Redfin, a seller could save as much as $4500 selling a $300,000 home. That’s a substantial savings over selling with a traditional brokerage. According to Redfin, their listings sell quicker and at a higher price than the industry average. Redfin sellers usually still pay a 3% commission to the buyer’s agent.
Free professional photos, a 3D digital walk-through, and a digital marketing campaign are all included in the price.
The question remains, is all of this just a little too good to be true? We’ll cover that in the next section.Learn how to sell a house and save thousands with ISoldMyHouse.com.
Does Redfin Work To Save Sellers Money?
The short answer is a resounding yes, Redfin does work to save sellers money. Redfin significantly reduces the out of cost expenses for sellers by slashing traditional brokerage fees.
As mentioned earlier, a seller pays 6% in total commission to a traditional brokerage. Half of the commission goes to the listing agent and half to the buyer’s agent. In contrast, with Redfin, the total commission is between 4 and 4.5%, depending on the market. Redfin’s listing fee is between 1% and 1.5%, while the buyer’s agent receives a 3% commission.
This translates into sellers saving thousands of dollars with Redfin.
Is Selling with Redfin a Good Idea?
Whether selling with Redfin is a good idea or not depends on the seller’s personal preferences. A highly autonomous seller would do well selling property on Redfin. Although sellers are partnered with a Redfin agent when selling their home, they don’t always receive the personalized attention that traditional agents bring to the table.
A seller who wants to establish a personal connection with a highly incentivized agent would probably be more comfortable going the traditional agent route. The impersonal nature of the Redfin experience may be a put off to sellers looking for a customized experience.
The decision to list your home with Redfin comes down to personal taste. For many home sellers, selling with Redfin would, without a doubt, be a good idea.
Do Realtors Avoid Showing Homes Listed by Redfin?
In theory, realtors could try to avoid showing homes listed by Redfin. However, given the digital landscape, this would be an uphill battle. Most potential homebuyers do online research when buying a home, including searching online listings.
Homes listed by Redfin exclusively aren’t listed on Redfin’s website. These homes are also found on websites such as Zillow and Trulia. Real estate agents are legally bound to act in their client’s best interests and place their interests before their own. Part of this obligation includes showing clients the properties that best meet their needs.
Not all agents act ethically, but generally, agents don’t avoid showing homes listed by Redfin.Learn how to sell a house and save thousands with ISoldMyHouse.com.
Alternatives to Redfin and Traditional Realtors
Redfin and traditional realtors certainly aren’t the only game in town. Technology is quickly changing the landscape of buying and selling homes. Many startups are trying to break into this new territory as traditional realtors adapt to buyers’ and sellers’ latest wants and needs.
Redfin is still one of the best-known discount real estate brokerages directly competing with traditional realtors. There are many alternatives to Redfin. We will look at some of those in the section.
An iBuyer is a real estate company that buys houses outright, directly from the owner. The “i” in iBuyer stands for instant. These companies specialize in selling homes quickly. The home seller doesn’t have to list the home, pay an agent, stage the home, market it, or even show it to prospective buyers.
iBuyers calculate a home’s value based on an algorithm using data points such as the home’s age, condition, and zip code. The iBuyer then makes a cash offer on a home that the seller can accept or reject. If they accept the offer, the cash arrives within a few days, sometimes in as little as 24 hours.
For Sale By Owner
Most of us have seen a for sale by owner, aka FSBO (pronounced fizz-bow) sign while driving around a residential neighborhood. However, many of us have never stopped to consider how selling a home FSBO works.
An FSBO is a home sold directly by the seller without the assistance of a listing agent. Sellers sell their homes FSBO to avoid paying agent commissions. Homes sold FSBO save the seller between 3% and 6% in commissions. However, the seller is on the hook for all the work involved in selling their home.
This can add up to substantial savings. For example, the seller of a property worth $500,000 would typically pay $30,000 of the sale in commission to the seller’s and the buyer’s agent. If that home is sold FSBO, the seller keeps all of the money. This is the biggest reason people decide to sell their homes FSBO.
Flat Fee MLS
A potential alternative for those who don’t want to pay the standard 6% real estate agent commission, a flat fee multiple listing service (MLS), allows sellers to pay a flat fee for their services.
In exchange, the agent then lists your property in the multiple listing services database. On occasion, in addition to the flat-fee MLS, agents offer other services such as professional photos, showings, and open houses.
We put together the video below for you to watch that shows you everything you need to know about how to use flat fee MLS to list your house without a Realtor.
Discount Real Estate Agents
As the name suggests, you get a discount when working with discount real estate agents. These agents charge less than the typical 3% paid when selling a home through traditional agents.
Discount agents make up for the profits lost from decreased commissions with high selling volume. These reduced commissions can add up to significant savings.
There are several types of discount real estate agents. Here are a few:
- Low-commission listing agents: Offer full-service for a reduced commission such as 1%
- A-la-carte services: Contracted for one-off services
- Refund a portion of their commission: once your house sells, they return part of the commission
- 2 for 1: You agree to buy and sell your house with the agent, they agree to sell yours without commission.
We Negotiated Lower Realtor Fees For You
ISoldMyHouse.com has negotiated significantly lower commissions with some of the best real estate brokers so you don’t have to. We will match you with a top local agent in your area that will sell your house (without sacrificing service) for a much lower fee!
We Buy Houses for Cash Companies
These companies target sellers who want to sell their homes quickly. Depending on where you live, it could take over a year to sell your home. Many people can’t afford to wait that long to sell their home. That’s where houses for cash companies come in.
You won’t get a top price when selling your home this way, but you will get cash quickly, and you won’t be responsible for paying agent commissions, scheduling open houses, or paying for repairs. Depending on your circumstances, using a houses for cash company may be a good option.
Houses for cash companies usually fall into the following categories:
Top FAQs for People Considering Redfin vs. a Traditional Realtor
This section will examine the most common selling questions people have before embarking on a relationship with Redfin versus a traditional realtor.
1. Are Redfin Agents Licensed?
Yes. Redfin employs licensed real estate agents, brokers, and realtors. They provide the same services as traditional realtors. The key difference is that Redfin’s agents are salaried employees who earn bonuses. They don’t work solely for commission. Their bonuses depend on customer reviews and the price of the home.
2. Can you List FSBO on Redfin?
Yes and No. There is no way to directly upload an FSBO property to Redfin’s website. However, if an FSBO is listed on Fizber.com or FSBO.com, it will be added to Refin’s active listings. These listings take about 48 hours to appear on the Redfin website.
3. Does Redfin Have all MLS Listings?
Yes. Being a real estate brokerage, Redfin has the same access to information as real estate agents, including updates when a new property is listed. Redfin updates new listings every ten minutes. The information is available on its website and app.
4. How do I Find a Redfin Agent?
Go to https://www.redfin.com/ and click on “real estate agents” in the screen’s upper right-hand corner. The link will take you to a page where you can enter your city, neighborhood, or zip code to find agents in your area.
5. Why are Zillow and Redfin Estimates Different?
Zillow and Redfin estimates differ because they use different algorithms to calculate a home’s value. Zillow uses something called a Zestimate. The Zestimate calculates a home’s value based on public and user-submitted information. Redfin uses a property’s list price to calculate its estimate of a home’s worth.
6. Are Redfin Estimates Accurate?
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.
Redfin updates its data every five minutes throughout the day, making its data some of the most up-to-date in the industry.
7. Which Real Estate Site is the Most Accurate?
The answer is subjective and depends on who you ask. The Balance and WashingtonPost have crowned Redfin the most accurate. According to Investopedia, realestate.com has the most accurate website. It’s always a good idea to research multiple websites to ensure you’re getting a comprehensive view of the market.Learn how to sell a house and save thousands with ISoldMyHouse.com.
Overall, buyers report a positive experience selling their homes on Redfin. One reviewer on Quora was impressed by the transparency of the home selling process with Redfin praising her agent for making all the right decisions when putting her house on the market. Her house sold the first day of its open house. Unsurprisingly, traditional agents didn’t have a lot of praise for Redfin.
The comments from users on Reddit who used Redfin to sell their homes were generally very positive. The worst review on Reddit was a lukewarm opinion by someone who described the process of selling his home with Redfin as “decent,” saying the agent was “ok.” Other Reddit users praised Redfin’s efficiency, its agents’ professionalism, how quickly their homes sold, and the ease of the process.
The reviews on G2.com also leaned towards the positive, with users praising the website’s tools and the overall user experience. There weren’t any comments from people who had used Redfin to sell their home.
The majority of negative reviews came from the ConsumerAffairs website with users complaining about a lack of attention and passivity from agents. Some said their houses sat on the market for months, and Redfin agents didn’t respond to their issues promptly.
Selling a home is often intimidating. There are many options available, making it difficult to know where to begin. Redfin digitalizes the home seller’s experience while also allowing them to benefit from an agent guiding them throughout the home selling process.
Redfin offers powerful digital tools to help you market your home; free professional photos are also part of the package. As a bonus, selling your home on Redfin will save you thousands of dollars over working with a traditional agent.
Everyone’s needs are different. Redfin may not be the best option for you. However, it is worth a closer look. This discount real estate brokerage is changing how we sell and buy homes and forcing its competitors to adapt.
About the Author: Kris Lippi is the owner of ISoldMyHouse.com, the broker of Get LISTED Realty and an official member of the Forbes Real Estate Council. He actively writes about real estate related topics such as buying and selling homes, how-to guides for around the house and home product recommendations. He has been featured in Inman, Readers Digest, Fox News, American Express, Fit Small Business, Policy Genius, Lending Tree, GoDaddy, Manta as well as other major websites. Read more about us here.