Redfin vs. Realtor

Redfin is a full-service brokerage that has reduced rates and realtor.com is an online real estate platform. Learn which is right for you.

Table of Contents:

Is Redfin better than a realtor?

Is Redfin really 1%?

Does Redfin really save money?

Is Redfin and Realtor com the same?

Why are Redfin agents cheaper?

Can you work for Redfin and other brokers?

What is better Redfin or Zillow?

What is Redfin’s minimum commission?

What does Redfin stand for?

Can you trust Redfin’s estimate?

What makes a house hot on Redfin?

What does off-market mean on Redfin?

Does Redfin do mortgages?

Summary

Is Redfin better than a realtor?

Redfin is a Seattle-based company that has since its founding in 2004 gained a lot of attention. This is because the online service works as a full-service real estate brokerage without charging the high commission rates that are standard for realtors. In fact, because of the business model used by Redfin, agents are salaried and thus, make an income through Redfin rather than directly through the sellers and buyer’s commission. This can be considered one of the main reasons that sellers consider Redfin better, as this business model allows them, to pay a 1% listing commission. However, apart from the cost, there is one more major difference between Redfin and a normal realtor, and that difference can often be enough to keep one from using Redfin. 

When a seller starts using Redfin for the sale of their property, they are doing so with the understanding that there won’t be one single real estate agent who will take care of all of their transactions, but instead, there will be a team of specialized agents hired by Redfin. This means that during different parts of the selling process and for different transactions the seller may be in communication with different agents. While this may not seem like a big deal to some people others will be less willing to list their properties through Redfin because of the anonymity created by their business model.

When considering the financial benefits of Redfin, Buyer Rebates. This means that under certain circumstances you may be able to rebate up to $1,500 of the buyer’s agent’s commission. This differentiates Redfin from a regular real estate agency that does not usually offer refunds or rebates. Once again, this could be considered a major reason in favor of Redfin’s superiority and could make property sellers and buyers choose this service over one offered by conventional realtors.

Redfin pros:

1. Smaller cost for sellers
2. Offers rebate for up to $1,500

Redfin cons:

1. Your case will be handled by a team which will make it less personal

Is Redfin really 1%?

Many people believe that Redfin offers its services for a 1% commission. This means that the listing fee that sellers expect to pay when using Redfin is 1%. However, when they are called to pay for the service they may be in for a surprise as they will notice that the commission requested by the service is 1.5% and not 1%. While Redfin heavily advertises its service as a 1% commission agency, what usually happens is that after the seller has paid their 1.5%, they may be able to be refunded for 0.5% if they fit certain criteria. Usually, to be able to get that refund or rebate, sellers will need to proceed with the purchase of the house through Redfin within 12 months. This refund policy can help ensure that more sellers will choose to come back to Redfin if they need to purchase a home. 

Does Redfin really save money?

Redfin can save you money in the sale of your property. Those savings can relate to either certain transaction costs that are eliminated, or to the listing fees which are also greatly reduced for Redfin users. Sellers should expect to pay 50% less for listing their homes through Redfin. For prospective sellers looking to see exactly how much money that would save them, Redfin offers on their website a savings calculator related to the listing cost. For those looking to both sell their home for the largest amount possible, while simultaneously looking to save the largest amount possible for the completion of the sale. 

Are Redfin and Realtor.com the same?

Realtor.com was the first big and successful online real estate website and in many ways, it transformed the industry after its founding in 1995. While both realtor.com and Redfin have become major forces in the real estate industry, they are two not only completely separate but also two completely different businesses. Where realtor.com is a real estate online platform for the listing of homes that are up for sale, Redfin is a full-service brokerage. This means that Redfin users will be supported by a Redfin team who will be responsible for certain of the tasks that relate to the home sale or purchase. This sets Redfin apart from most of the online real estate websites that have gained traction over the last few years. 

Why are Redfin agents cheaper?

Redfin offers its clients a reduced listing fee of 1.5% for the sale of their property. This is 50% less than the amount that is usually requested by real estate agents who will take on the task of selling your home. The way that Redfin manages to maintain such a low listing fee is by offering their agents a salary. Salaries agents, like the one working for Redfin, will not depend on commissions in the way that normal agents will and as such, Redfin will be able to lower the amount that they request from sellers. 

It is important to note here, that while for sellers working with Redfin the commission fee that they will pay will be much smaller when it comes to the listing fee, the buyer’s agent commission will remain the same as the one charged by normal real estate agents. This means that the buyer’s agent commission will fall somewhere between 2.5 and 3%. 

Can you work for Redfin and other brokers?

For real estate agents, one of the major appeals of Redfin is that they can join the Redfin program at any time and can start making money through it. While this may seem great for real estate agents who are first starting out, there may be those established in the industry who are still skeptical about working under a different brand.

What’s more, some fear that joining the Redfin partner program also means that they will need to leave the brokerage or real estate service that they are a part of. However, that is not something that they will need to worry about, as Redfin was built on the exact premise that real estate agents should be able to retain their jobs at their brokerages while also working for Redfin. For more information on the Redfin partner program and the way that it works, real estate agents can visit the dedicated page on the Redfin website. 

What is better Redfin or Zillow? 

Redfin and Zillow offer entirely different services, so determining which one is better would be a fairly absurd idea since they two do not do the same thing. On the one hand, Zillow, much like realtor.com, is an online property website. This means that those looking for a new property can visit Zillow and browse through all the available listed properties.

On the other hand, Redfin is a full brokerage service. This means that instead of getting a real estate agent for either the sale of the purchase of their home, property owners or potential property buyers can sign on with Redfin and get support through Redfin’s real estate agents. The Redfin agents can also be cheaper for sellers, which is a large part of the appeal of using this service. Therefore, deciding whether Zillow or Redfin is better relates more heavily to the type of service that you are looking for, rather than to the quality of these two services. 

What is Redfin’s minimum commission?

The minimum commission for those looking to sell with Redfin is 1.5%. This commission fee will cover all of the listing costs and the costs related to the services provided to the seller of a property. If a seller is looking to after the sale of their property, purchase another property through Redfin then they may be entitled to a minimum listing commission of 1%. This can be a great reduction and it can lead to a lot of savings that can go towards the purchase of their new home. 

What does Redfin stand for?

Redfin is actually an inversion of the word ‘finder’ and it relates to the fact that Redfin can act both as a real estate search tool and as a real estate agency for those looking to purchase or sell a home. 

Can you trust Redfin’s estimate?

The Redfin estimate is normally quite accurate as it uses an algorithm and bases the estimate that it provides on several different data which includes information on the recently-sold properties in the area, and other data taken from MLS. On the Redfin website, it is stated that the median error rate is only 1.77% for the Redfin estimate. While there is no direct proof of that, it is important to remember that the percentage of error possible in the estimation will be increased if there is a lack of data in the area and decreased if there is vast documentation available regarding the house sales in the area that you are interested in. 

What makes a house hot on Redfin?

Redfin uses its own algorithm to determine which houses are hot. Normally, hot homes are the ones that are likely to sell quite quickly or garner a lot of interest and attention. This is normally based on over 500 different features and attributes. Some of the most important aspects considered by the algorithm are the following: 

• The price of the home
• The type of property
• The neighborhood
• Amenities in the property
• The size of the property 

Homes that are deemed desirable through the algorithm will also be considered more competitive and as such, they will be more likely to appear as a hot house on Redfin. 

What does off-market mean on Redfin?

On Redfin, if a property is Off Market, then that property is not for sale. This could be because the properties have already been sold. In most cases, Redfin does not have a way of finding privately listed, or off-market, properties and as such, when off-market is noted on a property on Redfin it should be expected that that property is not for sale at all. 

Does Redfin do mortgages?

Redfin has in the past few years expanded its service to include Redfin Mortgage. A Redfin Mortgage can be a Mortgage fixed- and adjustable-rate mortgage that is available in 20 states and the District of Columbia. Pre-approval for a Redfin mortgage can take 90 minutes or less, making this one of the fastest ways of receiving pre-approval for your new property.

Redfin also offers a 30-day closing guarantee and in cases where that condition is not met, they will offer homebuyers $1,000 as compensation. This money will be given as a credit that can be used towards the closing costs for their home. The Redfin mortgage can be a great and fast way to proceed with the purchase of the property that a buyer is looking at. Because of all of the terms and conditions and guarantees that Redfin has put in place, it can also be considered a very secure way of completing the purchase of your new home. 

Summary

Redfin is a full-service brokerage that works through a team structure. This means that sellers who choose to pay their reduced commission rate will still benefit from getting assistance for their property sale. Prospective buyers can also benefit from using Redfin as they will be able to find some of the hottest houses in the market. Redfin has also expanded its service to include mortgages making it in this way one of the fastest ways of ensuring the acquisition of your new property.