⛔ RedfinNow is no longer purchasing homes.
On Nov. 9, 2022, Redfin announced that it will shut down its home-flipping business, RedfinNow. If you’re still interested in selling to an iBuyer, learn more about the best iBuyers near you.
Homeowners comparing iBuyers Opendoor vs. RedfinNow had a tough choice to make before Redfin announced the permanent closure of its house-flipping business.
Opendoor pays cash for houses and closes on homes in 10 to 14 days, much faster than the traditional process. Redfin used to offer a similar service, before it laid off 13% of its workforce and closed its iBuyer program.
Cost is an important factor to consider before selling to an iBuyer. Opendoor’s service fees total 6%, while RedfinNow’s fees cost sellers up to 13%.
To find out if an iBuyer like Opendoor is the right choice for you and to make sure you get a fair offer, try Clever Offers. A local realtor can show you offers from iBuyers and companies that buy houses for cash. And they’ll even negotiate the price and terms for you.
Opendoor vs. RedfinNow: A complete breakdown
Service fee: 6%
Cancellation fee: $0
Service fee: 5% to 13%
Cancellation fee: $0
|⏱️ Time to offer||24 hours||A few days|
|📅 Time to close||14 days||10 days|
|✅ Reviews||4.4 out of 5 in 2,984 reviews||3.15 out of 5 in 162 reviews|
Before it closed, RedfinNow had a similar business model to Opendoor. OpenDoor isn’t available in all areas, and your fees can differ significantly. Here’s how the iBuyers compared.
Opendoor and RedfinNow operated in similar markets. Both were available in Arizona, California, Colorado, Florida, Georgia, Minnesota, North Carolina, Nevada, Oregon, Texas, Virginia, and Washington, D.C.
Opendoor is active in more locations, including Alabama, Idaho, Indiana, Missouri, New Jersey, New York, Ohio, Oklahoma, South Carolina, Tennessee, and Utah.
RedfinNow cash offers were generally for houses built after 1930 with a lot size below half an acre.
You can get an offer from Opendoor if you own a single-family home or townhome. The property must have a clear title and be vacant or owner-occupied. Opendoor doesn’t have a set limit on lot size and expands cash offers to include duplexes and condos in specific markets.
Opendoor’s website clearly states a 5% service fee and a 1% closing cost fee. You may also need to factor in the price of repairs, but that varies based on the Opendoor assessment.
RedfinNow wasn’t very upfront about its fees. Your fee depended on the condition of the home and your real estate market. It ranged from 5% to 13%, according to its FAQ page. That’s a difference of $24,000 for a $300,000 house — a significant amount for most sellers.
Opendoor can give you an offer in 24 hours and can close in as fast as 14 days. That’s much faster than the average time to close for a traditional sale (50 days, according to a 2022 report).
With RedfinNow, sellers needed to wait “a few days” to get an offer and closed in 10 days.
Neither company has accreditation from the Better Business Bureau (BBB). RedfinNow reviews show 47 complaints filed with the BBB in the past three years, compared to 0 complaints with Opendoor. However, Opendoor’s profile is in the process of being updated, according to the BBB.
The reviews for both companies mentioned common iBuyer complaints, like unresponsive agents and offers below market value.
There’s also a lawsuit against Opendoor for misleading consumers. The company agreed to a $62 million settlement with the Federal Trade Commission for tricking customers into thinking they’d get more money by selling to Opendoor than on the open market.
Opendoor vs. RedfinNow: How to choose
The decision on whether to use Opendoor vs. RedfinNow is a lot easier to make now that RedfinNow has closed its iBuying business.
Who should choose Opendoor?
If you’re on a tight timeline and want an offer ASAP, Opendoor might be your best option. You can get an offer within 24 hours.
You may also choose Opendoor if you like predictability. The company walks you through the process and is upfront about its fees: a 5% services fee, plus 1% for closing costs.
Who should choose RedfinNow?
RedfinNow no longer purchases homes, so you’ll have to consider Opendoor or another iBuyer alternative instead.
Opendoor and RedfinNow alternatives
If selling your house to an iBuyer like Opendoor isn’t for you, here are some alternatives:
Offerpad can give you a cash offer for your home that’s valid for 60 days, but it also lets you test your home on the open market.
Cash home buying companies
Companies that buy houses for cash might be a better option if you need the cash right away or if your home isn’t in great condition. iBuyers like Opendoor usually buy easy-to-sell homes in good condition, but a cash home buyer will often buy properties that aren’t as easy to sell.
Opendoor vs. RedfinNow FAQs
Is Opendoor better than RedfinNow?
Opendoor and RedfinNow offered similar services before RedfinNow announced the closure of its home-flipping business. Opendoor makes a free, no-obligation offer, allowing you to compare your options before committing to one company. View our Opendoor vs. RedfinNow breakdown for more details.
What are the top competitors to Opendoor?
Opendoor has a few competitors, including Offerpad. Companies that buy houses for cash are additional alternatives to look at if you’re considering selling your home quickly.
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