Redfin vs Broker: What is the difference? (2023)

What You Get With a Redfin Agent - Quick Summary

Redfin agents offer many of the same services as traditional real estate agents for a lower listing fee: 1.5% instead of the traditional 3%. BUT there are compensations,including less dedicated support for home sellers and minimal fees that can offset savings on lower-priced homes.

Many customers are happy with Redfin, but some have reported uneven quality of service and other issues related to Redfin's team-based model. The best agents deal with a higher than average number of customers, who are transferred to different touch points during the buying and selling process.

If you're drawn to Redfin primarily because of its lower real estate commission, be aware that otherlow commission brokersoffer similar savingsmiBest service. We recommend doing your research to find a real estate agent that fits your budget and expectations.

Our #1 Alternative to Redfin

For most people, Clever Real Estate is a better alternative than Redfin. As a leading broker matching service, Clever connects you with the best brokers from big-name brokers like Berkshire Hathaway and Keller Williams.

Unlike Redfin's discount real estate agents, Clever's agents are dedicated, well-rounded agents who have been carefully selected for their experience, local sales history, and customer reviews.

Clever offers the same 1.5% commission rate as Redfin, butwhichshortcuts in the service. You can also get cash back when you buy a home, which Redfin no longer offers.

Interview several agents to get the best deal, or just walk away. Clever's service is free, without obligation.

💰Get a Top-Rated Local Agent and Save Thousands in Listing Fees!

in this guide

We take a look at how a Redfin agent differs from a traditional agent, especially in terms of fees and Redfin's quality of service. We also provide information to help you decide if selling with Redfin is right for you, as well as what alternatives you might consider.

📖 You will find information about:

  • Differences between Redfin and Realtor
  • redfin fees
  • Redfin Quality of Service
  • The quality of Redfin vs. Realtor
  • How to Find the Best Redfin Alternatives

Redfin agents x realtor: main differences

🔎 Main differences between sales with Redfin agents and traditional agents:

  • Redfin agents earn a salary instead of a percentage commission for each sale.
  • Redfin agents do not handle all aspects of your sale. They collaborate with a larger team of specialists, such as marketers and transaction coordinators.

While the services may look the same on paper, theexperienceSelling with a Redfin agent versus a traditional real estate agent is quite different. This is why.

Redfin's fees are lower than traditional real estate agents

By selling with a Redfin agent, you can expect to save 20-30% on real estate agent commission fees.

Oaverage commission ratenational is approximately 5.45%. This total fee is typically split in half between the two agents handling the sale:

  • Listing Fee:Paid to the listing agent for helping the seller list and sell the house
  • Buyer's Agent Fee:Paid to the buyer's agent for taking his client to buy the house

Discount brokers like Redfin offer savings on the listing fee side of this equation, ie Redfin charges sellers 1.5% compared to the typical listing fee of 2.5-3%.

" FURTHER:How much does Redfin cost compared to a traditional real estate agent?

🚨 Beware of Redfin's minimum fees!

While Redfin advertises a 1.5% listing fee, it also has minimal fees on many markets.

For example, if yousee this picture, you'll see that Redfin has a minimum commission of $7,000 in San Francisco and $4,900 in Boston.

You will not necessarily earn the 1.5% commission if you work with Redfin agents in these markets. For homes below a certain price, these minimums can be much higher than 1.5%.

(Video) The Difference Between a Zillow, Redfin & a Traditional Agent | Mint Real Estate

You may still have to cover the buyer's agent's commission.

Redfin encourages sellers to offer a competitive buyer's agent rate to encourage buyer's agents to show the home and attract more offers faster.

Buyer's agent commission rates are negotiable and vary by market, but 2.5-3% is typical nationwide.

See how the total commission rate can be reduced when you sell with Redfin.

Service

Taxa*

Seller's Agent Commission

1,5%

Buyer's Agent Commission

2,5–3%

Total

44,5%

*Minimum fees apply and vary by market. Fountain:red fin

So what does this look like in terms of actual dollar savings?

Use our calculator to see how much you can save by paying Redfin's 1.5% realtor fee compared to the traditional 3% realtor fee.

" FURTHER:The Best Low Commission Companies, Ranked

Same general services, less dedicated support

Redfin agents offer many of the same general services as traditional real estate agents, including help with pricing, marketing, showings, offers, paperwork, and coordinating the closing.

But Redfin agents manage and providethese services differently. If you're wondering if and why Redfin sucks, the biggest drawback might be the spotty intervention service, especially for inexperienced buyers and sellers.

Consider these differences in how Redfin works for sellers compared to a traditional agent.

Redfin agents handle 3 times more transactions than the average real estate agent

Redfin agents are busier, so they may not have time for all your questions, pass them on to another team member, or take longer to return your call or text.

This may not be a problem for confident sellers, but sellers who need security and communication—and there's nothing wrong with that—may not like working with a high-volume agent.

Redfin vs Broker: What is the difference? (1)

Redfin uses a team-based model instead of an individual model

In a conventional sale, you can go to your agentfor all. It generates trust and relationship, and there is a direct responsibility.

At Redfin, you will work with a team of experts. Do you have problems with the way your house is being marketed? You will need to talk to your marketing specialist. If you're having trouble with your open house, you'll have to talk to someone else, and so on.

This model can be more efficient, but it can also be confusing and frustrating if not handled well.

Redfin handles much of the process remotely through its website and app.

Much of the selling or buying process will take place through Redfin's mobile app and online control panel.

Redfin's tech-centric approach may be great for some who prefer to communicate and coordinate this way, but for others, especially the less tech-savvy among us, it can be frustrating or confusing.

Selling or buying a home can be complicated and stressful. Sometimes it is preferable to get answers in real time, in person or by phone.

Hire the individual agent, not the brand!

Every real estate agent will have a mix of great and not so great agents.Redfin is no exception.

Redfin is transparent about this fact. Their "agent locator" tool provides information on each individual Redfin agent, including customer reviews and a map of their past deals.

(Video) Zillow vs Redfin vs Realtor.com. What's the difference? | Bay Area Real Estate Tip #31

With this tool, you can tell at a glance if you're looking at a five-star elite player or a mildly motivated newbie.

Redfin vs Broker: What is the difference? (2)

Of course, some of Redfin's newer real estate agents are major futures producers. Like any survey tool that relies on past performance, Redfin's agent search tool is likely to overvalue certain quantifiable data (like past sales and customer reviews) and undervalue intangibles like a personal connection.

This is important because personal connection and shared priorities are the foundation of a smooth and fulfilling real estate experience.

✍️ What is a Redfin partner agent?

The Redfin Agent Search Tool will also display Redfin partner agents. These are brokers from other brokerages who pay Redfin a referral fee to appear in their searches.

It is important to note that these agents ARE NOT bound by Redfin's terms and prices. Double-check your agent options and be sure to interview a variety of agents to find a good fit.

When comparing Redfin agents to real estate agents, your first goal should be to find an agent that is right for you.

Interview several agents to understand their approach to helping you meet your needs, whether it's the fastest possible sale, the best price, quality of service, or some other term or priority.

Redfin agents may have fewer direct incentives than traditional real estate agents

How motivated are Redfin agents vs real estate agents? The answer may lie in their different incentive structures.

Conventional real estate agents receive a commission based on a percentage at the end of the sale. The higher the final sale price, the more money they make. Your motivations as a seller (a higher price) align perfectly with those of your agent.

💰How Redfin Agents Get Paid

Redfin Agentswork for a salary, with occasional performance bonuses. No matter how much your home sells for (or even if it doesn't!), your Redfin agent will earn the same salary.

That's not to say that Redfin agents won't do everything they can to sell your home. Redfin offers its agents competitive salaries. According to reviews, most Redfin agents take their responsibilities very seriously.

But it is worth thinking about turning off the incentive. There are simply fewer direct incentives for Redfin agents, which may contribute to a lower sales price or slower closing date for you.

Is it a good idea to sell with Redfin?

Redfin offers some real savings, usually around20-30%compared to a conventional real estate transaction.

These savings may come with some risk compared to the experience you'll have with a conventional real estate agent.

Whether Redfin is a good idea for you comes down to your unique needs.

👍Redfin is a good way to sell a house if:

(Video) Rex Vs Redfin vs Best Local Realtor

  • You don't need a lot of personal attention.
  • Are you comfortable with technology?
  • Prioritize lower commissions
    Are you selling a high value home?

👎Selling with Redfin can be a bad option if:

  • You value your agent's individual service and support
  • Are you selling a house for less?
  • You are not comfortable with technology.

Alternatives to Redfin and traditional real estate agents

After comparing Redfin agents to real estate agents, you're probably wondering if there's a middle ground.

Stellar service with a lower commission rate? A la carte options for advanced home sellers? We've got you covered with these Redfin agent alternatives.

Get low pre-negotiated rates with traditional real estate agents

If you want to save on commissions but want to avoid customer service trade-offs, consider working with a discount company that negotiates low rates with traditional real estate agents on your behalf, such asSmart Real Estate.

Clever only works with major local brokerages like Berkshire Hathaway and RE/MAX. Because Clever connects your partner agents to you at zero upfront cost, you can pass the savings on to you.

This means you'll get the same service and support you'd expect from a traditional real estate agent, but you'll pay a fraction of the normal price.

Compare Redfin with other discount brokers

Redfin is just one of a growing number of discount brokers out there.

There are a number of national, regional, and local brands to choose from, each offering a wide range of prices, service models, and pros and cons.

Generally speaking, most will come with some sort of variation on the same basic catch:

You can save a lot in fees, but you'll likely trade something (or take some kind of risk) in return, usually customer service.

We recommend shopping and comparing Redfin with one or two discount brands, along with one or two traditional agents, to get the best possible value to suit your needs.

" FURTHER:The Ultimate Guide For Discount Brokers

Sell ​​For Sale By Owner (FSBO)

🏆 Benefits of selling FSBO:

  • FSBO sellers do not pay a listing commission.
  • The entire sales process is under the control of the seller.
  • Using a flat fee MLS service makes your listing just as visible as agent listings.

⚠️ Risks of selling FSBO:

  • FSBO sellers are still required to offer a buyer's agent commission of around 3% to attract potential buyers.
  • Overseeing a sale from start to finish can be challenging for a non-professional.
  • Data shows that FSBO sales have lower average sales prices than agent listings.*

"For Sale By Owner" is exactly what it sounds like:

A sale made entirely by the property owner, without the assistance of a listing agent.

Since the main challenge is visibility with buyers, many FSBO sellers use aflat fee MLS listing service. These services charge a flat fee to place your listing on the local MLS, but generally do not provide any additional services.

👍 FSBO can make sense if:

  • Have a hot property in a hot market
  • Without any schedule (FSBO properties tend to sell slowly)
  • Have professional experience that can help you sell a home
  • Place a very high value on independence and autonomy.
  • They are okay with not getting the highest possible price

" FURTHER:How to sell your home for sale by owner

Selling to a 'we buy houses for cash' company

🏆 Benefits of selling to a cash buyer:

  • A cash buyer will buy houses even if they are in poor condition, sometimes even buying vacant lots.
  • Sellers can receive a cash offer in a matter of days, sometimes hours.
  • Sellers generally have more flexibility in choosing departure and closing dates.

⚠️ Risks of selling to a cash buyer:

  • Offers are often well below market value, sometimes by as much as 50%.
  • Subsequent personal inspections may result in bid deductions for repair costs.
  • Spot buyers follow them very aggressively, sometimes for years, even after sellers reject their services.

"We Buy Homes for Cash" companies have been known to buy nearly all homes, regardless of location or condition, for cash.

👍 Good for sellers who:

  • Not worried about getting the highest price
  • I need to sell as soon as possible
  • Inherited property that they have no interest in keeping
  • You do not have the capital or motivation to perform pre-sale repairs

👎 Bad for sellers who:

  • You want a fair price
  • There are houses that could be sold conventionally as they are
  • They are not under pressure to part with the property.

" FURTHER:The truth about companies that buy houses with cash

Sell ​​to an iBuyer

🏆 Benefits of selling to an iBuyer:

  • iBuyers can extend cash offers within days or even hours of contact.
  • They tend to bid much closer to fair market value than other types of cash buyers.
  • Many offer new arrangements, such as home exchanges.

⚠️ Risks of selling to an iBuyer:

  • Because they pay fair prices, they rely on service fees to make money.
  • Sellers can almost always make more money with a conventional sale.
  • iBuyers are very selective and prefer new homes in good condition.
(Video) How Accurate is Redfin's Estimate?

iBuyers are big tech companies that make quick cash offers on houses, often without being seen. Please note that many of these companies have a limited geographic reach, so they may not be available in your area.

👍An iBuyer may be a good fit if you:

  • Owning a home that meets an iBuyer's typically strict buying criteria
  • Value convenience and speed over getting the highest possible price
  • You want to avoid the stress and uncertainty of listing on the open market
  • You need maximum flexibility and control over your closing hours

Redfin vs real estate agent: frequently asked questions

Redfin isn't inherently bad, but it does have drawbacks. Although Redfin agents are cheaper compared to a traditional agent, Redfin agents handle many more clients than traditional agents. Then you will earn a lot.less individualized supportfrom Redfin than from a traditional agent.

Redfin does not allow you to post homes for sale by owner (FSBO) directly on their platform. However, Redfin's home search portal pulls listings directly from local MLS's across the country. If you are listing the FSBO and pay aflat rate company MLSTo publish your listing on your local MLS, it must be listed on Redfin.com.Read our full guide to selling FSBOs.

Yes. Redfin is a fully licensed real estate broker with MLS access in each market in which it operates. All MLS listings must appear on the Redfin website and app. However, Redfin will not have MLS listings for locations outside of its service area.Find other real estate buying sites like Redfin.

Visit Redfin.com, add your city or zip code in the search bar, and search. Clicking on "Real Estate Agents" in the upper right corner will open a list of agents in your area. You can view individual agent customer reviews and deal history.See how Redfin agents compare to a traditional real estate agent.

Redfin's listing fees are generally quite transparent, although Redfin does have minimal commissions in some markets. These minimums can sometimes exceed the quoted commission rate of 1.5% for homes below a certain price.See how Redfin stacks up against other low commission companies.

Related Posts

(Video) The Real Reason Redfin is Killing Real Estate Agents

FAQs

Why do people choose Redfin? ›

When you sell with a Redfin Agent, you get full service at every step and better technology for less than the usual listing fee. On average, homes listed with Redfin sell for $1,600 more and sell 5 days faster than comparable homes listed by other brokerages.

How accurate are Redfin estimates? ›

The Redfin Estimate is highly accurate, with a current median error rate of just 2.11% for homes that are for sale, and 6.44% for off market homes. This means that when a home that is currently on the market sells, the Redfin Estimate will be within 2.11% of the sales price half of the time.

Is there a huge difference between Zillow and Redfin? ›

Redfin is more accurate when valuing homes.

Both Zillow and Redfin give homes an approximate value, but the Zestimate provided by Zillow has proven slightly less accurate than Redfin's estimate. Final numbers depend significantly on the local market and demand for a property in your particular location.

Can you negotiate on Redfin? ›

Redfin bases its prices on what it believes is an accurate offer based on the market. The company's streamlined process doesn't leave room for much negotiation, but Redfin says it may consider an updated offer if the market has changed since the initial offer or if they missed something important during the inspection.

Is Redfin really only 1%? ›

Does Redfin really offer a 1% fee? Redfin claims to offer a 1% listing fee, but this only factors in the cost for the seller's agent. Remember that you still need to pay a commission to the buyer's agent, which is a standard 3% fee. Most sellers can expect to pay 4% in total Realtor fees if they use Redfin.

What is the Redfin controversy? ›

The lawsuit was brought in 2020 by the National Fair Housing Alliance, along with nine other fair housing organizations nationwide. NFHA alleged that communities of color received fewer services and discounts from Redfin than home buyers or sellers in predominantly white areas due to a “digital redlining” practice.

What is the most accurate home value estimator? ›

1. Redfin. The most accurate home value estimator is Redfin as it uses historical pricing data and also considers real-time demand and market trends. Redfin estimates are more accurate than Zillow, and the interface is intuitive, making it easy to find exactly what you're looking for.

Why are Redfin estimates so low? ›

What Can Cause Errors in a Redfin or Zillow Home Value Estimate? A common reason for inaccurate estimates is outdated information. For example, if you have made major additions or renovations that don't show up in the data that Redfin or Zillow have collected on your home, then their estimates may be too low.

Why is Zillow estimate so much higher than Redfin? ›

Most of the time, Zillow and Redfin have different estimates for your house because they have slightly different approaches to calculating home values. However, if there's a big gap between your Zestimate and Redfin Estimate, it may mean that one company has inaccurate information about your home.

Why is Zillow so much higher than realtor? ›

Is Realtor.com or Zillow more Accurate? This is another frequently asked question from home sellers and buyers. The main difference between Realtor.com home values and Zillow Zestimates is that Zillow uses its own program to create a Zestimate, while Realtor.com uses several 3rd parties to provide multiple home values.

Is Redfin the same as MLS? ›

Since Redfin is a brokerage, our website and mobile apps are powered by the MLS, so you'll get access to the same information as real estate agents, including notifications when new homes hit the market. New listings are updated every 10 minutes on Redfin.com.

Why is there such a difference between Zillow and Redfin? ›

While they operate somewhat similarly, the most significant difference between Zillow and Redfin is that Redfin is a real estate brokerage with its own real estate agents, while Zillow allows you to connect with real estate agents but does not have its own.

Does Redfin split commission? ›

Rather than splitting the commission with their broker, some agents pay a “desk fee” to their brokerage and receive 100% of the commission. At Redfin, there are no commission splits or desk fees. Redfin Agents earn a salary plus bonuses instead of commission.

How low should you go on a house offer? ›

Typically, a lowball offer is considered to be at least 20% below the asking price. If you're offering 10% below, the property should be in a good condition but may just need some cosmetic work done. The goal of offering 10% below the asking price is to use those extra funds to cover the repairs.

How can I negotiate my house price without an agent? ›

If you decide that working with an agent isn't for you, make sure you write this into your offer. Tell the seller that you're offering a lower price because they don't have to pay for your real estate agent's commission. This will typically save your seller 3% of the purchase price.

What top cities are people leaving Redfin? ›

People are leaving San Francisco, Los Angeles and New York

More homebuyers looked to leave San Francisco than any other major metro, followed by Los Angeles, New York, Washington, D.C. and Boston. That's determined by net outflow, a measure of how many more Redfin.com users looked to leave an area than move in.

How many people is Redfin laying off? ›

Redfin said last November that it would wind down its home-flipping program RedfinNow and eliminate 862 positions, or 13% of its workforce.

Why is Redfin tanking? ›

Redfin Corp. sank to a fresh record low after an Oppenheimer analyst downgraded the stock and said the real estate company's model was “fundamentally flawed.” Shares dropped almost 10% on Monday to $3.63, as Oppenheimer's Jason Helfstein cut his recommendation to underperform from a hold-equivalent rating.

How do I remove my home from Redfin? ›

First, visit your Owner Dashboard by selecting 'My Home' on the bottom icons. Select the home you'd like to unclaim. Next, select the three dots in the top-right corner of the Owner Dashboard page. Now, a menu will appear, select 'Unclaim this Home' to remove this home from your Owner Dashboard.

Do Redfin hot homes sell faster? ›

Redfin aims to give you an advantage by identifying Hot Homes that are likely to sell quickly, so you know which homes to go see in person right away. A Hot Home is a home for sale that is expected to be among the most competitive homes on the market, according to the proprietary Redfin Hot Homes algorithm.

How accurate is the Zillow zestimate? ›

How accurate is the Zestimate? The nationwide median error rate for the Zestimate for on-market homes is 2.4%, while the Zestimate for off-market homes has a median error rate of 7.49%. The Zestimate's accuracy depends on the availability of data in a home's area.

Is MLS more accurate than Zillow? ›

Your State's MLS

If you are able to view the MLS in your area online directly, you will only see properties that are currently active on the market. This makes the MLS more accurate than Zillow, which frequently keeps properties listed as available long after they have been taken off the market.

Why the MLS is better than Zillow? ›

While Zillow has 50-80 fields of information and pictures about the properties, an average MLS has more than 300. That means Zillow provides limited information about a property. In contrast, an MLS includes all the market times, listing information, photos, unsuccessful listings that date 10 to 20 years back.

Why does Zillow underestimate home values? ›

Zestimates may not reflect improvements, mistakes in property taxes paid, or exceptions to tax assessments. Since Zestimate also accounts for turnover rate, estimates for homes kept long periods of time may not be accurate.

Do Zillow views mean anything? ›

The "views" and "saves" (seen next to Time on Zillow) are numbers you want to be high—but they are not cumulative for the time the house is on the market. They only show views and saves made over the previous 30 days. So don't be shocked if those numbers actually go down over time.

Is Redfin the same as opendoor? ›

Opendoor pays cash for houses and closes on homes in 10 to 14 days, much faster than the traditional process. Redfin used to offer a similar service, before it laid off 13% of its workforce and closed its iBuyer program. Cost is an important factor to consider before selling to an iBuyer.

What makes Redfin different from Zillow? ›

In a nutshell, Redfin is a real estate brokerage as well as an iBuyer (instant home buyer) that purchases homes directly from sellers in select states. Zillow is an online real estate marketplace where people can browse listings and connect with agents who advertise on the site.

Why is there a difference between Redfin and Zillow? ›

Why do Zillow and Redfin have different listings? As a brokerage, Redfin has access to the MLS databases and is updated frequently. Zillow, being a marketplace rather than a brokerage, does not have the same MLS access and relies largely on real estate agents and owners to list their properties.

Why some houses are hot in Redfin? ›

A home that is not designated a Hot Home on the day it hits the market may be designated a Hot Home by the algorithm if it gets a significant number of Redfin views, tours, or other indications of buyer interest while on the market.

What does star mean on Redfin? ›

Tour Insights: A listing with a star in the upper right corner indicates that a Redfin Agent toured this listing and provided insights about it.

Videos

1. Associate Agent vs Lead Agent at Redfin
(Elijah Privette)
2. Thoughts on Differences Between Redfin and Hub Edge Realty...
(Jonathan Bowen)
3. What's the best listings site to use Redfin vs Realtor com vs Zillow vs Trulia What's the difference
(CHEM.digital)
4. RDFN Company Overview: How Redfin is Redefining Real Estate, Beating Zillow & Traditional Brokers
(Open Market Analytics)
5. Redfin and Similar Discount Brokerages: What You Need to Know
(Malkin Real Estate Group)
6. This is how REDFIN makes money
(Ben Lalez Real Estate)

References

Top Articles
Latest Posts
Article information

Author: Corie Satterfield

Last Updated: 10/15/2023

Views: 6059

Rating: 4.1 / 5 (62 voted)

Reviews: 93% of readers found this page helpful

Author information

Name: Corie Satterfield

Birthday: 1992-08-19

Address: 850 Benjamin Bridge, Dickinsonchester, CO 68572-0542

Phone: +26813599986666

Job: Sales Manager

Hobby: Table tennis, Soapmaking, Flower arranging, amateur radio, Rock climbing, scrapbook, Horseback riding

Introduction: My name is Corie Satterfield, I am a fancy, perfect, spotless, quaint, fantastic, funny, lucky person who loves writing and wants to share my knowledge and understanding with you.