Compass and Redfin are two of the top real estate brokerages in the U.S. that can help you get your home on the market and sold. While they’re similar, they each cater to a different type of home seller.
Compass provides personalized service from two real estate professionals. It also offers to fund home staging or repairs to increase the property value. It can be a great choice for first-time sellers who need a lot of support or can’t afford up-front home improvements.
Redfin is a discount broker that claims a streamlined selling experience for a reduced commission. It’s a top choice if you’re planning to both sell and buy a house and don’t need a ton of agent support.
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What is Compass Real Estate?
Compass is a full-service real estate broker that pairs you with two professionals who have experience in your market and with your property type. It can be a great choice for first-time sellers who need a lot of support or can’t afford up-front home improvements. Just don’t expect to save any money on commissions.
- Full support agents.
- Concierge service provides funding for improvements.
- Sells homes faster than market average.
- No commission savings.
Compass Real Estate doesn’t offer commission savings, but tends to provide more service and support than discount real estate brokers.
Its concierge program is a good fit for sellers who want to make pre-listing improvements to drive up their sale price and potentially shorten their time to sell. It covers services like home staging, deep cleaning, and cosmetic improvements. Compass provides the initial funding, and you only repay the company once your home sells.
Compass is available in over 70 markets nationwide.
Compass is the largest independent U.S. brokerage, with a network of over 28,000 agents across more than 70 markets. In 2022, it brokered over 200,000 sales.
Compass also claims it sells homes 19 days faster, on average.
You can expect a similar experience from Compass as a traditional real estate brokerage, except that you’ll work with two professionals and the process will take place primarily online.
Compass connects you with both “advisors” and “agents” who have experience in your market and with your property type:
- “Advisors” provide high-level guidance, such as market analysis, pricing strategies, and general advice. They don’t necessarily have a license.
- Licensed real estate agents actively work with you to buy or sell a property. You can meet your agent in person.
Compass Concierge is an additional marketing service that helps sellers prepare their homes for sale. Commission rates depend on the region, and the company doesn’t publicly display the cost.
How does Compass Concierge work?
Concierge offers services like staging, deep cleaning, and cosmetic improvements. Compass provides the initial funding, and you repay them once your home sells, you cancel your listing, or after 12 months have passed.
The Compass agent can help you decide which services that can help you get more for the money.
What is Redfin Real Estate?
Redfin is a well-known discount brokerage that operates in most major cities. The savings are impressive, especially if you buy and sell with Redfin, but some of its agents are inexperienced. And while Redfin’s tech-focused approach comes with some neat features, it also means you may get less hands-on support than you need.
- You’ll get good savings with a 1.5% listing fee.
- Redfin’s extras, like 3D walk-throughs, can help sell your home.
- If you buy and sell with Redfin, you can get a 0.5% listing fee refund.
- Agent quality and customer service are not always great.
- Minimum fees are high in some markets.
- You’ll receive less one-on-one support from your agent.
Redfin offers good commission savings, and it’s available in most metro areas. But it comes up short in terms of customer service, plus its high minimum fees negate the savings in some markets.
Redfin uses a team-based model instead of having your agent oversee every part of your sale. This approach makes the process more efficient, which allows Redfin agents to handle a higher volume of customers. But you may face misunderstandings or mix-ups when working with multiple people.
And while some Redfin agents are good, others are new and inexperienced. With relatively few realtors in its network, you run a higher risk of getting stuck with a less-than-stellar realtor when you sell with Redfin.
Redfin is available in AZ, CA, CO, DC, FL, HI, IL, IN, LA, MA, MD, MI, MN, MS, NC, NJ, NM, NV, NY, OH, OK, OR, PA, TN, TX, VA, and WA.
Redfin is a popular nationwide discount brokerage with agents in more than 100 markets in the U.S. and Canada.
When you sell with Redfin, you’ll pay a fixed 1.5% listing fee. You’ll still be responsible for the full buyer’s agent commission though, typically 2.5–3%, unless you also buy with Redfin.
You can expect a similar experience working with a Redfin agent as with a traditional real estate brokerage, though you may not receive as much individual attention.
How Compass differs from Redfin
The choice between Compass and Redfin comes down to service levels versus savings.
Since Compass isn’t a discount brokerage, sellers will likely pay the average local commission rate, versus Redfin’s 1.5% commission. On a $200,000 home, selling with Redfin can save you over $2,000 in realtor fees.
However, Redfin’s agents tend to be overextended, so you may not get the individual attention and support you need. Meanwhile, Compass connects you with two pros.
Like most national brokerages, Redfin doesn’t fund pre-listing repairs. So any improvements — even updating outdated fixtures, or simply adding a fresh coat of paint — are your responsibility.