Redfin vs Zillow

As society becomes more advanced, the internet is beginning to play a major role in how we do things. When it comes to the best real estate websites for buyers, Redfin and Zillow are two very popular options. These days, aspiring homeowners turn to these listing websites to list their homes for sale. But which is better? In the never-ending Redfin vs Zillow debate, which listing site comes out on top?

Redfin and Zillow are two sites that offer homeowners and real estate agents the opportunity to market their assets to interested buyers. And over the years, they have blazed the trail in the online property listing space. Besides offering buyers access to different properties in diverse locations, they also provide information about current market trends. So buyers who use these platforms can explore different property options and prices to know which one falls under their budget.

Redfin and Zillow are very easy to use and great resources for planning future home transactions. Buyers can also use them for cost comparison, among other uses. Furthermore, Zillow vs Redfin are two platforms that sellers can also use to market and sell homes within a short time. So, suffice to say that these online property listing platforms offer buyers and sellers utility at a low cost.

Moving forward, we want to review Zillow vs Redfin estimates, what differentiates them, and which one is best for you. We hope that you will be able to make an informed decision that will benefit you after reading the article.

Why are Zillow and Redfin so different?

When people engage in the Zillow vs Redfin debate, they are quick to point out one feature or area where one outperforms the other. While they may be right for the most part, what many fail to realize is that these platforms have certain key differences. While they are both classified as real estate listing sites with unique tools of their own and offer the same service, there is a key difference.

That is the proprietary technology that they use. The difference in technology best explains why both sites will give you different estimates for the same property. Zillow estimates and Redfin estimates are never the same. Redfin house value and Zillow house value are hardly ever the same either. To buttress our point, let us review each website individually. In a nutshell

So while Zillow and Redfin operate in the same industry and use similar proprietary technology, their operating software is different, and so is their scope.

What is Redfin?

Redfin is a real estate brokerage platform that operates in selected cities scores the United States. This platform partners with licensed real estate agents that accept to work on a much lower commission compared to the average realtor. This lower commission rate is one of the reasons why many people prefer to sell properties on their platform because they get to save thousands of dollars in commission. Furthermore, if you buy your property on the platform using Redfin estimates, you might get a buyer’s rebate to help you save money.

The platform also has what is called the “iBuying” service or “Redfin Now,” which is a tool buyers can utilize to make a cash offer on a home so as to close the sale as quickly as possible. This service comes in handy when you find a very good property in a competitive location, and you don’t want to lose out to another buyer.

In addition, Redfin also has another feature called “Redfin Refund.” This feature is used to connect buyers with realtors who work with the website. Buyers can use this feature to receive cashback from realtors based on certain market conditions and agreements between both parties.

How does Redfin get properties?

The site gets properties by pulling listings from several MLS and databases. Redfin MLS is a conglomeration of independent databases that are constantly updated by agents. These data are culled by Redfin algorithms and updated every 5 minutes to ensure accuracy. So the website offers users all the data so they can compare prices for properties in a particular area. This is how Redfin estimates are aggregated for buyers.

Once a buyer finds a property they like, they can browse the listing to get more information about the property, or better still, schedule a video tour with the agent in charge. The argument put forward by Redfin advocates is that about 64% of properties sold via the platform have been sold at close to 3% of their real worth, which is much higher than Zillow’s estimate accuracy of 29%.

What is Zillow?

Zillow is another widely used property listing and brokerage website today. May buyers visit the website daily to search for listed properties and current property values in the US. According to data published on their platform, more than 2.2 billion people visit the site annually.

While Zillow operates like Redfin, one major difference between the two is that Zillow allows for FSBO transactions and listings while Redfin does not. This benefits sellers who are looking to save agent fees. Furthermore, the FSBO listings help buyers find listings that are not available on other listing websites.

Zillow has a feature called “Zillow Offers,” which works just like Redfin’s “Buy Now” offer, which you can use to make quick offers to sellers to expedite a sales transaction. This feature is available in over 25 markets and is a smart tool for closing sales quickly.

How does Zillow get properties?

When reviewing the difference between Redfin vs Zillow, you need to know that Zillow operates slightly differently from Redfin even though they are both brokerage platforms. This is why it does not work with MLS platforms. Instead, Zillow works with a large network of real estate companies that publish listing information. This best explains why it takes the platform close to a week to publish new listings for users to see.

Zillow tools are numerous but one of its widely used tools is the Zestimate Tool. This tool is used to evaluate the value of properties listed on the platform. The Formula used to measure value are based on private and public data.

Are Redfin and Zillow Estimates accurate?

To be fair, both platforms value assets within a single percentage margin of error. Both are highly accurate, and many people trust their data. While Redfin values homes with an error rate of 3.04%, Zillow values homes at a 1.9% margin of error.

What can cause errors in a Redfin and Zillow Home Value Estimate?

There are a few reasons why there may be valuation errors with their estimation. One major reason for errors is outdated information. For better understanding, imagine if a homeowner had listed his property on any of these platforms, and soon after, renovated the house to improve the aesthetic and structure, this will raise the value up.

However, the new changes in value will not be reflected in the websites because they are still running with outdated information. Renovations after the listing are one of the major causes of low estimation on these platforms.

Is Redfin truly a 1% site?

Yes, it is. The listing fee on Redfin is 1% when you buy or sell. This 1% policy is one of the reasons why many sellers and buyers use it is because it reduced the commission on sales to just 4%. This is much lower than what you pay as commission to a licensed real estate agent.

Is Redfin more accurate than Zillow?

It depends on who you ask or which data you want to believe. However, based on nationwide data, Zillow’s Zestimates have proven to be much more accurate than Redfin’s estimates. But you need to understand that both sites will never give you a zero margin of error estimate for your home. So when deciding on an important financial decision like buying or selling a house, you should rely on other tools as well to help you out. Find below a table that details the margin of error for both Redfin vs Zillow

Note: Not for sale homes are typically homes listed on these platforms by their owners so as to evaluate their worth in the market but without the intention to sell them. Redfin and Zillow are very bad sites for accurately evaluating the value of not-for-sale homes. As for houses up for sale, Zillow has a median error rate of 6.9%, while Redfin has an error rate of 8.70%.

Is Realtor better than Zillow?

Realtor is another hugely popular platform, and their estimates are equally very useful. However, it isn’t easy to pick which is better based on a single or a few metrics. However, based on data published on Realtor and Zillow, the former averaged 86 million unique monthly visits in 2020 while Zillow averaged 221 million unique visitors monthly.

Both sites enjoy tremendous traffic, which is a testament to the value they provide users, but which one is best? Based on experience and user feedback, many agree that Zillow holds more aces in this debate. It is slightly better because it has more listings and attracts more traffic than Realtor. At the end of the day, it is up to you to decide which of them you prefer to use, but we recommend using both for better results.

Why are Zillow Estimates very high?

If you have been using Zillow for some time, you will notice that their estimates are high on average. The reason for this is quite simple. Zillow estimates are influenced by search data and the opinions of buyers. So, in essence, the platform values houses based on how much buyers think they are worth. Also, note that homes in urban areas will attract higher estimates than the same home in a rural location.

Why are Redfin Estimates very low?

On the flip side, Redfin generates lower estimates compared to Zillow. This site tends to highly value homes with attractive landscapes and structures, while Zillow does not really take aesthetics into account.

Who owns Redfin?

Redfin is a full service platform based in Seattle. It was founded in 2004 and went public in 2017. The original owners of the platform are

• Michael Dougherty
• David Weaker
• David Selinger

These owners devised a business model which basically undercuts the competition by offering sellers marketing opportunities for a discounted fee. The CEO of Redfin is Glenn Kelman.

Does Zillow own Redfin?

Contrary to popular opinion, Redfin is an independent company and shares no affiliation with Zillow even though they operate in the same industry.

Is Redfin better than Zillow?

N terms of which is better, it depends on what your needs are. If you are looking for value accuracy, Redfin is the better platform. However, if you are into FSBO or you want greater flexibility in choosing the agents you work with, Zillow is the better option.

Are you looking for a real estate platform that offers free home value estimates, top-notch tools, and excellent customer support? Look no further than Richr! In this article, we’ll explore why Richr is the best discount broker for real estate investors and why it stands out from its competitors.

Free Home Value Estimates

One of the key features of Richr is its free home value estimate tool. This tool provides users with an accurate estimate of their home’s value, based on a variety of factors such as location, size, and recent sales data. With this tool, users can make informed decisions about buying or selling a property, without having to pay for a professional appraisal.

Comprehensive Tools for Real Estate Investors

In addition to the free home value estimate tool, Richr offers a range of other tools that are designed to help real estate investors make informed decisions. These tools include a property search function, a mortgage calculator, and a rental property calculator. With these tools, users can easily compare different properties, estimate their monthly payments, and determine the potential return on investment for a rental property.

Excellent Customer Support

At Richr, we understand the importance of excellent customer support. That’s why we offer a dedicated support team that is available to assist users with any questions or concerns they may have. Whether you’re a first-time home buyer or an experienced real estate investor, our team is here to help.

Conclusion

The eternal debate about Redfin vs Zillow is one that will continue; however both platforms are very good. Before you decide on the one to use, be sure of what you want so you can make an informed choice at the end of the day.