Redfin Cash Offer Reviews: Is this Discount Real Estate Service Right for You?

What is Redfin?

Redfin is a real estate platform where buyers and sellers can browse local listings, check home values, and connect with agents. The company is most known for offering discounted commission rates, typically around 1% to list a home when you buy and sell, instead of the traditional 2.5%–3%.

The company is one of the largest discount brokerages in the country, with agents who agree to lower listing fees and reduced rates for buyers. Beyond buying and selling, the company also offers mortgage services and help coordinating repairs or upgrades before listing.

Many homeowners first land on the Redfin website to browse homes or use its free automated valuation model (AVM), which quickly estimates a property’s value based on recent comparable sales.

In November 2022, as the housing market began to cool, Redfin announced it was winding down its iBuyer program, RedfinNow.

How does Redfin work for home sellers?

For most Americans, their home is their largest asset. When it comes time to sell, they want to maximize their profit, and one way to do this is to pay an agent a lower commission. Redfin capitalizes on this desire by matching sellers to low-commission agents.

The Redfin Full Service option puts sellers in touch with local agents who charge a 1% listing fee, instead of the national average of 3%. When you list with one of their agents, your listing gets premium placement on their site.

The listing fees are also subject to minimums, which vary by market. Before you assume that they’ll save you money, look at how their minimums compare to home prices and commissions in your area.

Redfin’s Concierge service, in partnership with Notable, helps sellers complete home improvements, like repairs, painting, and staging, before listing, to boost the home’s sale price. The upfront costs are covered and typically repaid from the proceeds when the home sells.

Having someone else manage upgrades and repairs so that you can list for top dollar can take a lot of work off your shoulders. The Concierge service could be a helpful option for some home sellers, especially if you are dealing with an inherited property at a distant location.

Redfin’s Open Book service connects home sellers with local contractors, cleaning services, handymen, and stagers in its affiliate network. You can narrow down your search by reading reviews left by users and agents. Numerous other companies offer similar matching services, such as HomeAdvisor, Fixr, Thumbtack, and Angi.

How does Redfin work for homebuyers?

In a hot market, jumping on a new property can help you find your dream home. Redfin updates its multiple listing service (MLS) listings every five minutes, unlike other services that can take several hours to days to pull in new listings. If they’re working with a Redfin agent, homebuyers can tour homes on demand, either in-person or via video chat.

These agents charge just 1% commission when you buy and sell with Redfin. In the past, sellers usually paid the buyer’s agent commission, but after the recent landmark settlement with the National Association of Realtors (NAR), buyers are now encouraged to negotiate their agent’s fees directly.

Aside from the lower commission, Redfin offers Rocket Preferred Pricing, giving you the option of a 1% lower interest rate for the first year or up to $6,000 in closing cost credits with a Rocket Mortgage loan.

Does Redfin serve your area?

Redfin matches home sellers with agents nationwide and in parts of Canada. A zip code search will tell you if they have agents near you.

Is there a cost to use Redfin?

The only cost to sellers is the commission they pay, similar to any other real estate transaction. If you use Redfin’s Concierge service with financing through Notable, you won’t pay anything upfront. Instead, you get access to funds for home improvements that are repaid at closing.

The financing carries a low annual interest rate of about 1% every month, and interest only accrues on the funds you actually use, with repayment conveniently handled from your home sale proceeds.

Signing up to track real estate listings through their website or requesting agent matches is free.

How does Redfin make money?

Redfin has several revenue streams, all related to the real estate industry. Because they’re a public company, there is a lot of data available on how they make their money.

Redfin agents are salaried, which is unusual for the industry, and work in teams. They are paid a base salary and transaction bonuses. The 1% commission actually goes to Redfin, covering their costs, profit, and agent salaries.

Agents can partner with Redfin to receive referrals rather than becoming an employee. If they close a transaction through a Redfin referral, they pay the company a commission or “referral fee” of up to 40%, depending on the closing sales price. The concierge service also provides revenue, but it’s unclear if they charge contractors for referrals. They also receive commissions for mortgage referrals.

Redfin reviews: What customers say about the company

To truly know what it’s like to use Redfin’s services, look to people’s real-life experiences. Online reviews can provide insight into actual clients’ experiences with the service, but keep in mind that since Redfin has different agents in each area, your experience could vary*.

Better Business Bureau (1.12 out of 5 stars, 34 reviews)

Reviewers leaving negative comments on the BBB site are primarily unhappy with Redfin’s agents. Complaints range from poor communication to false promises about leaseback periods, lost money due to improperly priced homes, and missed appointments. A few reviewers use adjectives like “horrible” and “inept.”

The real estate company responds politely to all complaints and volunteers to speak to individuals, but further comments indicate that some reviewers didn’t receive responses to their emails. There are also numerous positive reviews praising individual Redfin agents. With so many agents in different areas, your experience may be different.

Consumer Affairs (1.2 out of 5 stars, with 182 reviews)

On Consumer Affairs, clients expressed frustration with the company’s customer service and support. Many report missed deadlines, errors on listings, and a lack of anyone available to help fix issues. Some found their processes to be confusing and poorly managed, leaving them stuck or unsure what to do next. Others had trouble getting refunds or resolving payment problems, which added to their frustration.

Several clients feel let down by the lack of clear communication and responsiveness. They describe being passed around, given conflicting information, or ignored entirely. These experiences have left some clients warning others to be careful and sharing that they were very dissatisfied with how the company handled problems.

What are the pros and cons of using Redfin?

After learning what Redfin customers have experienced, it’s helpful to take a closer look at what the platform does well—and where it may fall short. Redfin offers innovative tools and a streamlined process, but it may not be the perfect fit for every buyer or seller. Here, we outline the main pros and cons to give a balanced view of the service.

Pro: Keep more money from your home sale

When you sell with a low commission agent, you’ll spend less money on agent fees, which could mean more money in your pocket, depending on how the agent performs. Redfin cites that its sellers save thousands of dollars.

Con: Make less money overall

One drawback to working with a low commission agent is that you could make less overall on your home sale. Redfin agents are salaried, which has its benefits and drawbacks. Agents who work on commission typically have more motivation to get you top dollar for your home.

Moreover, with a lower commission structure, the company makes its money in volume — its motivation is to close sales quickly. Many customer complaints on review sites expressed concerns that the seller could have made more with a different agent.

Pro: Working with a team can give you access to more resources

Many independent agents also work in teams. By pooling resources with other agents and brokers, they can build a better network of contractors, home inspectors, and mortgage brokers. With multiple people to field phone calls and arrange requested repairs after a home inspection, the process of selling could go smoother.

Con: Working with a team may cause issues

Since Redfin agents work in teams and with independent contractors who take care of showings and open houses, you’ll be talking to several individuals. And it’s understandable to wonder if some of the customer complaints about no-shows and unprofessionalism are because contractors, not Redfin agents, were handling an appointment or showing.

Pro: The majority of the transaction goes through their online sales platform

If you want to be hands-on with your home sale and manage much of it yourself, you may like working with their sales platform. Redfin agents aren’t super hands-on, and they manage the sale largely through their online seller dashboard. If you have a simple, straightforward home sale, you may appreciate this.

Con: The process lacks personalized service

The flipside to their reliance on technology to manage the sale is that you could grow frustrated with sparse communication. You may not want to manage the sale yourself, and if you have complicated negotiations, multiple buyer requests for repairs, or other considerations outside the norm, the tech-first approach may not be right for your sale.

What are some alternatives to Redfin?

If you’re looking for an agent to help you sell or buy a home, there are alternatives to Redfin.

• HomeLight
• Clever Real Estate
• Zillow
• Ideal Agent

All of these services match you with agents in their network, and you’ll likely have a dedicated agent (rather than a team that could consist of independent contractors). Some, like Clever Real Estate and Ideal Agent, also match you with agents who accept lower commissions. Zillow competes directly against Redfin by presenting home sales data and MLS listings, and agents pay to join their network and receive referrals.

How do HomeLight’s seller and buyer services work?

HomeLight can also match you with a local, experienced agent. HomeLight uses data-driven algorithms to connect buyers and sellers with top-performing local agents. The platform also provides insights into agent track records, helping you choose someone with proven results.

After answering a few questions through our Agent Match tool, you’ll receive the names and contact information of several proven agents in your area. Unlike Redfin’s service, you can pick from a list of potential matches. You can interview several top professionals to find the best personality fit and match, and with over 28,000 agents in our network, you’re sure to find the one.

Several customer complaints stated that if Redfin matched them with an agent that they didn’t like or didn’t think would be a good fit, they had a hard time getting a different agent. They had to call and request a different team, and couldn’t always get it switched. HomeLight Agent Match doesn’t lock you into one agent or team. Rather, it gives you more choices and lets you pick.

Other services and tools offered by HomeLight

HomeLight offers additional services similar to Redfin, as well as more tools for home sellers.

• Buy Before You Sell: What if you’re selling so that you can buy another house and move? In hot markets, it’s hard to shop for a new house if your offer has a sales contingency in it, and you might have to rent for a while before you can buy again. With HomeLight Buy Before You Sell, we give you a back-up offer on your home, allowing you to make an offer without a sales contingency, which makes your offer more attractive to sellers.
• Simple Sale: If you’re looking to sell within a week, the Simple Sale platform can connect you to cash buyers. Our network of buyers will give you a full cash offer for your home within 24 hours. You can avoid paying agent fees and pick your close date, even as fast as 7 days.

Additional tools and resources

• Home Value Estimator: Curious about how much your home is worth? Our home value estimator analyzes up-to-date sales information for comparable properties to return a ballpark estimate.
• Agent Commissions Calculator: How much will you pay in commission when you sell your home? Our commissions calculator will help you figure that out.
• Home Affordability Calculator: How much house can you afford? After answering a few basic questions about income and expenses, our calculator’s result will help you set your home-shopping budget.
• Best Time to Sell Calculator: Opting for a discount Realtor can save you money, but you’ll benefit most by carefully planning to maximize your home sale profits. The best time to sell calculator analyzes sales data from your market to determine the best time for you to list your home and sell for more money.

Here’s a quick run-down on frequently asked questions about Redfin.

Like HomeLight, Redfin offers valuable, time-saving services

Redfin offers valuable services and the opportunity to save money when selling your house. They are a legitimate company that has served various customers over the years. However, it’s still important to compare your options carefully to ensure their model aligns with your specific goals and expectations.

It’s documented that many reviewers say they regret using them for their home sale. But, as with any service business, satisfied customers may not be as motivated to post reviews.

If you’re looking for a top-rated agent and a smooth selling process, consider using one of HomeLight’s proven network agents. They have the experience and market expertise you need to get the best price for your home, and will offer hands-on, dedicated service.

Header Image Source: (Frankie / Unsplash)

Editor’s note: Information in this article is current as of its publication date. Processes, rates, and services from real estate companies can change based on market conditions, housing trends, changes in technology, and customer needs.