📌 Important Note
Redfin ended its iBuying program, RedfinNow, in 2022. But there are other ways to get quick, all-cash offers on your home:
- Get a free cash offer comparison from Clever Offers
- Sell to an iBuyer
- Sell to a leading cash buyer
For the most competitive cash offers, we recommend Clever Offers. Answer a few quick questions to get multiple offers from vetted cash buyers in their network — no added fees or obligation.
What was RedfinNow?
RedfinNow was the iBuying arm of low-commission real estate brokerage Redfin. Until it ceased operating in 2022, it bought homes for cash as a faster, more convenient alternative to the traditional listing process. However, like all iBuyers, RedfinNow paid less than what sellers could get on the open market. Its fees were also extraordinarily high — costing sellers up to 13% of their home price.
Why did RedfinNow shut down?
In a statement announcing the closure of RedfinNow, Redfin CEO Glenn Kelman explained: "To prosper in a housing downturn that could last at least through 2023, we have to simplify our business. We're closing our iBuying business, RedfinNow, because maintaining a profit with rising interest rates would make our offers on homes insultingly low."[1]
Top alternatives to RedfinNow
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Clever Offers provides a hassle-free way to find and compare competitive cash offers. When you want the speed and ease of an all-cash sale, they bring you multiple offers from a variety of sources — including iBuyers, small and large-scale investors, and even your local MLS. You can compare offers side-by-side with no added fees or obligation to move forward.
Pros
- One source for multiple competing offers
- Buyers are screened for experience and proven success at closing deals
- Dedicated support to ensure a smooth closing and find you other offers if needed
- Excellent average customer rating
Cons
- Cash offer options may be limited in some areas
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With Homeward, you get the advantages of a cash offer, plus the additional upside of selling on the open market. Homeward can also help you buy before you sell or buy a new home with a competitive cash offer. But you’ll have to pay a program fee of up to 7% on top of the usual home-selling costs.
Pros
- Get cash upfront, then list for additional upside
- Or, make a cash-backed offer on a new house before you sell
- In-house mortgage and title solutions that reduce program fees
- Bring your own real estate agent
Cons
- Program fees added to your realtor commissions and closing costs
- Homeward keeps a significant reserve to cover maintenance and repair costs
- Some sellers express frustration over hidden costs and low final payouts
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Opendoor pays much closer to market value than traditional house flippers while still offering the benefit of fast closings and no repairs. For that convenience, you’ll need to contend with stricter purchase criteria, repair deductions, and a variable service fee (formerly 5%).
Pros
- Pays closer to market value than traditional home flippers
- No need to make repairs or prep your home for sale
- Choose your closing date and change it if needed
Cons
- Final offers can be significantly lower than the initial estimates
- Stricter purchase criteria than traditional home flippers
- Repair deductions and service fees can eat into profits
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Customer Rating
Time to Close
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Offerpad pays more for homes than traditional house-flippers and also offers great perks, including free local moves and flexible closing windows of 8–60 days. However, it has a 5% service fee and customers claim it charges high fees for repairs uncovered during the home inspection.
Pros
- You can close in just eight days
- You can stay in your home for three extra days past your closing date at no charge.
- Sellers get free local moves and a 3-day free extended stay after closing
Cons
- Strict purchase criteria compared to traditional house flippers
- Repair deductions can greatly reduce your final offer
- 5% service fee is on par with realtor commissions
» MORE: The top companies that buy houses for cash
Who was RedfinNow best for?
| 🤝 Service fee | 5–13% |
| ⏱️ Time to close | 10–90 days |
| 📍 Locations | 31 cities in AZ, CA, CO, GA, IL, MD, MA, MN, NV, NC, OR, TN, TX, VA, WA |
| 🏡 Eligible homes | Valued between $150,000–$1.5 million* Lot size under .5 acres Owner-occupied or vacant |
*Varies by market
RedfinNow may have been a good option for homeowners who needed to sell on an extremely short timeline. But it wasn't a great choice if you wanted to sell your home for what it was worth.
All iBuyers typically offer less than market value for homes, and RedfinNow's extremely high fees meant you were left with even less money in your pocket.
Before accepting an offer from an iBuyer, compare it to what other iBuyers are offering and to what a realtor could potentially sell your home for.
How did RedfinNow compare to other iBuyers?
| iBuyer | 💰 Service fees | 🌎 Availability |
|---|---|---|
| RedfinNow | 5-13% | No longer operating |
| Offerpad | 5% | Select markets in AZ, FL, GA, IN, NV, NC, OH, SC, TX |
| Opendoor | Variable (formerly 5%) | Nationwide |
RedfinNow was one of the three main iBuyers, along with Opendoor and Offerpad. You could expect to pay the same in closing and repair costs with other iBuyers, but the biggest difference between RedfinNow and other major iBuyers was its variable 5–13% service fee — compared with Opendoor and Offerpad's historic 5%.
On the sale of a $500,000 home, RedfinNow's charges could have meant $40,000 more in fees than other iBuyer companies for basically the same service.
You could request offers from multiple iBuyers to compare them, as long as they were available in your area. RedfinNow, like all iBuyers, tended to only be available in major metropolitan areas.
» MORE: The best iBuyer companies
RedfinNow reviews summary
RedfinNow had a number of negative reviews from customers who were offered significantly lower prices due to errors in the company's initial valuation. Its parent company, Redfin, is not accredited by the Better Business Bureau and has an F rating overall.[2]
Where did RedfinNow buy homes?
RedfinNow used to operate in 31 cities nationwide, including:
- Atlanta
- Boston
- Chicago
- Nashville, TN
- Phoenix
- Washington, D.C.
However, in a company memo dated November 9, 2022, Redfin announced the closing of its RedfinNow subsidiary.
If you’re looking for companies similar to RedfinNow, we’ve ranked the best companies that buy houses for cash.
How did RedfinNow work?
RedfinNow made it easy to sell your home in six steps:
| 1. Request an initial cash offer. You entered your home address on the RedfinNow website and clicked “Get My Offer." |
| 2. Receive your initial offer. Redfin would email you your cash offer a few days after submitting the request. Redfin used its valuation model to determine what your home was worth. |
| 3. Accept the cash offer. If you liked the initial offer, sign the form Redfin sent over and choose a closing date within 10 to 90 days later. |
| 4. Schedule an inspection. Redfin set up inspections to determine if your home was structurally sound. These could include a general home inspection as well as specialized ones, as needed. |
| 5. Receive the inspection report. The report would detail any problems with the home as well as the estimated cost of repairs. RedfinNow deducted repair expenses from the final cash offer — but you had the option to cancel the sale if you disagreed with the estimates. |
| 6. Close the deal. In most states, you could close in as few as 10 days, following a title search and final walk-through. On the actual day of closing, you would sign the sale documents at the office of an attorney or title company to formally transfer the title and complete the sale. |
What homes did RedfinNow buy?
RedfinNow had strict criteria for purchases. Generally, RedfinNow made offers on single-family homes, condos, and townhomes that were built after 1930.
| 💰 Valued between $150,000 and $1.5 million* |
| 🌳 Lot size under .5 acres |
| 📁 Clear title |
| ✅ Good physical condition |
| 🔑 Owner-occupied or vacant |
*Varies by market
RedfinNow fees
RedfinNow charged a variable fee of 5–13% of the final sale price — on top of closing costs and repair costs.
| 💰Service fee | 5–13% |
| ⏱Closing costs | 1–3% |
| 🛠Repair credits | 1–2% |
| Total | 7–18% |
RedfinNow's variable service fee could be as much as 13% of the home's purchase price. That was a LOT to pay for the convenience of a quick sale — on a $500,000 home, as much as $65,000 could be earmarked for RedfinNow!
The costs of using RedfinNow went beyond the service fee. You also had to pay for any necessary repairs and routine closing costs out of pocket.
How did RedfinNow calculate its service fee?
Unfortunately, RedfinNow did not disclose the service fee by market, so it could be difficult to know whether you would pay at the higher or lower end of the range. However, the company considered factors such as risks associated with reselling your home and expenses incurred until the home was resold to set your rate.
Redfin wanted to make sure it could resell the home quickly, so it considered comparable sales and home-buying trends. If you were in a hot market where properties tended to sell quickly, the service fees would be lower.
The costs associated with owning your home until Redfin found a new buyer would also influence whether you paid at the high or low end of the 5–13% fee. Some of the expenses Redfin assessed when calculating your fee included:
- Homeowner’s association dues
- Property taxes
- Potential maintenance
- Home insurance
- Utilities
Selling with RedfinNow: Pros, cons, and reviews
Because RedfinNow purchased fewer houses than other iBuyers, it was difficult to find verified reviews. However, across the few RedfinNow reviews that were available, a few common advantages and disadvantages emerged:
| ✅ Speed | ❌ High fees |
| ✅ Convenience | ❌ Lower-than-market-value offers |
| ✅ Certainty | ❌ No negotiation |
| ✅ Flexibility | ❌ Limited availability |
Pros of selling with RedfinNow
Here are the biggest benefits of selling to RedfinNow:
- Speed. With RedfinNow, you could get a cash offer within a few days of making a request and could then close within 90 days. Being able to sell your property more quickly could be a major advantage.
- Convenience. Preparing your home for sale can involve cleaning and making cosmetic repairs, staging the property for open houses, and having dozens of potential buyers visit your home. You could skip all that with RedfinNow and get a cash offer sight unseen.
- Certainty. You would know within days if you were eligible for a RedfinNow offer and what amount the iBuyer was willing to pay. You wouldn't need to hope and wait around for a buyer — or worry about their financing falling through.
- Flexibility. When you sell to a traditional buyer, you have to agree on a closing schedule that works for both of you. With RedfinNow, you chose the closing date so you could work on your own schedule. And if your sale closed before you were ready to move out, you could rent the home back from RedfinNow for $100 per day for 29–60 days after the closing date.
Cons of selling with RedfinNow
Here are some of the biggest disadvantages:
- High fees. You had to pay the RedfinNow service fee, which was generally going to be more expensive than traditional real estate commission — up to 13% of the home's sale price. You also had to pay for closing costs, typically an additional 1–3%.
- Offers are below market value. Redfin couldn't profit by paying exactly what your home was worth, so offers were approximately 5–15% below market value.
- No option to negotiate. With traditional buyers, issues such as the purchase price, repairs you'll pay for, and even who pays closing fees are all up for negotiation. With RedfinNow, the offer was take it or leave it.
- Limited availability. Unless you lived in one of the few areas where RedfinNow operated, you weren't able to sell your home to this iBuyer.
- Poor reviews. RedfinNow was the subject of customer complaints, including some home sellers indicating they experienced substantial drops in their offer price due to errors in the initial valuation. The operating company Redfin also received an F rating from the Better Business Bureau, though many BBB complaints focused on its broader business services rather than its iBuyer program.
Positive RedfinNow reviews
This seller indicated that the process was convenient and they received the money in their account quickly.
RedfinNow complaints
While some home sellers had a positive experience, others definitely didn’t. These two sellers both complained about the high fees and the low offers they received for their properties.
And this seller had a problem with the iBuyer's repair requests.
When you worked with RedfinNow, you gave up your bargaining chips and passed up the chance to get top-dollar for your property — in exchange for being able to sell your property quickly for cash.
In a traditional real estate transaction, you can negotiate with would-be home buyers about repairs or choose to sell your property "as is" (and not make any repairs or offer any discounts if problems turn up during an inspection).
FAQs about RedfinNow
Did RedfinNow charge fees?
Yes, RedfinNow charged service fees and they were VERY high compared with its competitors. RedfinNow fees typically ran 5–13%, which was more than twice what Opendoor charged and several times as expensive as selling with a low commission real estate agent.
How did RedfinNow work?
RedfinNow made instant cash offers on homes in select markets. It made money by purchasing homes for less than their full market value and then reselling them at higher prices. It also charged sellers expensive fees that could have cost up to twice as much as ordinary real estate commission. Learn more about how iBuyers work.
Was RedfinNow a good deal?
It depended on your priorities. If a quick sale was what mattered most, selling to an iBuyer like RedfinNow was generally a better deal than selling to a cash home buying company. However, RedfinNow was looking to resell your home at a profit, so it didn't pay as much as an ordinary home buyer. Find the best ways to save money when you sell a house.
Was RedfinNow worth it?
RedfinNow may have been worth considering if your top priority was selling quickly. But if you wanted to walk away with as much money as possible, you may have had better options. For example, selling with a low-fee brokerage could have put thousands of dollars back in your pocket.
Which is the best iBuyer?
The best iBuyer for you depends on your priorities as a home seller. While most iBuyers offer quick cash closings, each has distinct purchase criteria, availability, customer ratings, and perks. If you're looking to save money and sell fast, we recommend checking out our list of the best iBuyer companies.
Could you negotiate with RedfinNow?
No, usually you couldn't negotiate with RedfinNow. Its first offer was typically its final offer. However, if you thought RedfinNow missed something important such as a recent renovation you could request a correction, which might have affected the offer. When working with an iBuyer, the best insurance against a low offer is to source offers from multiple iBuying competitors.
How did the RedfinNow home inspection work?
Your RedfinNow home inspection would usually take place within 10 days of accepting RedfinNow's offer. The home inspection was free, but if the inspection turned up any problems, then RedfinNow might deduct repair costs from your initial offer price. You could either accept the reduced offer or cancel the sale without penalties if you disagreed with the estimated extra charges. Learn more about how RedfinNow worked.
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