Houwzer and Redfin are both discount real estate brokers that sell your home for below-market rates while offering the full service and support that a traditional agent would.
Both companies also offer purchase rebates to sellers who also buy with them.
- Houwzer is ideal for sellers along the East Coast who want a full-support team, including a top agent and logistics coordinator.
- Redfin has a wider coverage area in the U.S., making it a better choice for sellers who want the exposure of a top-ranking real estate website — as well as professional photos and digital marketing included with their agent services.
» COMPARE: Best Discount Brokers for Every Budget
What is Houwzer?
Houwzer has a 1% listing fee, which is among the lowest of any low commission brand. Its commission is capped at $10,000, which makes it especially appealing for higher-valued homes. Like Redfin, Houwzer has a few potential service risks, but if you’re selling an expensive house, the savings may be worth the tradeoffs.
- 1% listing fee
- Savings increase on higher-priced homes
- Limited agent options
- Houwzer agents handle a high transaction volume
Houwzer’s low 1% listing fee and $10,000 commission cap makes it a great option for sellers of higher-priced properties. The higher your sale price, the more you’ll save. However, Houwzer’s customer service approach introduces a few potential trade-offs into the home-selling process.
Houwzer is available in DC, FL, MD, NJ, PA, and VA.
Houwzer is a discount real estate broker that charges 1% of the sale price to sell a home, which is about one-third of the cost of using a traditional realtor (typically 2.5–3%). In addition, if you sell and buy with a Houwzer agent and use its mortgage and title services, you’ll get a $2,500 rebate.
Houwzer currently operates in Jacksonville, Orlando, Philadelphia, Tampa, and Washington, DC, as well as multiple cities in Maryland and South Jersey.
Houwzer’s reduced listing fee
Houwzer offers a flat commission rate of 1% to list and sell a home.
Although a discount service can sometimes mean a hit to customer service, Houwzer averages a 4.9 rating from over 1,100 reviews on Google and Zillow. Customers attribute their great experiences to their agents’ knowledge of the market and willingness to answer questions.
Houwzer agents are involved in over 30 transactions per year (compared to a median of 12 for traditional agents). Its team-based approach, however, lets agents work together in different capacities, giving them more experience closing transactions than the average agent.
What is Redfin?
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’ll get less hands-on support than you may need.
- You’ll get good savings with a 1.5% listing fee.
- Redfin’s extras, like 3D walkthroughs, 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 nationwide company that offers discounted commission rates (1.5%) to home sellers. It’s also renowned for its popular real estate app, which boasts updated listings every five minutes and same-day tours.
In 2022, nearly half a million customers bought or sold homes with Redfin, whose agents operate in over 100 markets — giving their listings massive exposure.
Redfin will provide customers with a rebate of 0.5% if they buy a home with the help of a Redfin agent within 365 days of selling theirs. It also offers a 0.25% interest rate reduction if buyers finance through its mortgage company, Bay Equity.
Redfin Premier provides high-end home preparation, targeted social media ads, and coordinated email campaigns for homes valued at $1 million or more.
Redfin’s reduced listing fee
Redfin charges 1.5% for the sale price to list and sell with one of their agents, about half of a traditional agent’s commission. A major trade-off for the low fees is a lack of customer service, which may be because Redfin agents support more clients at a time than traditional agents.
One advantage Redfin offers is complimentary professional photos and 3D walk-through. Some traditional agents do include these services in their commission, but it’s often an additional charge.
Redfin has an F rating with the Better Business Bureau, with 1.25 out of 5 stars, though approximately 300 online reviews average a 3.7 rating. Some individually reviewed Redfin agents get more favorable ratings than others.
How Houwzer differs from Redfin
Houwzer has the potential to save you more money than Redfin, and it has an edge in customer experience over Redfin. But its coverage area is much smaller, and Redfin has the advantage of exposure via its popular website and vast network of agents.
Houwzer vs. Redfin customer service
Both companies’ agents are involved in over 30 transactions per year, compared with a median of 12 for traditional agents. More customers, though, rate Houwzer’s agents and service much more highly, on average, than Redfin.
|Houwzer: 4.9/5 (based on 1,100+ reviews)||Redfin: 3.7/5 (based on 300+ reviews)|
Agent vs. Houwzer vs. Redfin on a $500,000 home sale
|Selling with…||Traditional agent||Houwzer||Redfin|
|Listing agent commission||$15,000 (3%)||$5,000 (1%)||$7,500 (1.5%)|
|Buyer's agent commission||$15,000 (3%)||$15,000 (3%)||$15,000 (3%)|
|Total cost||$30,000||$20,000 ($10,000 in savings*)||$22,500 ($7,500 in savings*)|
|* Compared with full-price traditional agent|
Note: Customers who use the same company (Houwzer or Redfin) to both sell and buy a home can save about $2,500 on their purchases.
Other discount brokers
Discount real estate brokers save home sellers on listing fees by skipping outdated elements of the conventional brokerage model. Oftentimes, sellers can save even more if they then buy their next homes using the same company’s services.
Each company has a different approach, though, with some saddling agents with a higher-than-average client load, while others negotiate a reduced commission in exchange for quality customers.
Clever Real Estate, for example, matches you with a network of full-service realtors who charge a discounted rate of 1.5% listing commission. And buyers can get $2,500 cash back, whether you sell with Clever or not.
You’ll be connected with some of the best agents in your area — from top brokerages like Keller Williams, Century 21, and RE/MAX — with no obligation to choose one until you find the best fit for you.