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Edited by Josiah Wilmoth
Written by Michael Warford
Edited by Josiah Wilmoth
Redfin vs. realtors: Differences | Selling with Redfin | Redfin fees | Buying with Redfin | Alternatives | FAQs
Redfin is a good alternative to a traditional realtor if you’re looking to save money. It offers low rates and a level of service that’s similar to what you’d expect from a typical agent. But Redfin isn’t the best option overall for most people. Other discount brands, like Clever Real Estate, offer even bigger savings — and better hands-on service too.
» MORE: Find the best discount brands near you!
Should I use a Redfin agent?
Whether or not Redfin is right for you depends on your situation:
For many home sellers, Redfin is a good alternative to a traditional realtor and offers legitimate savings. But you probably have other local options that offer better overall value than Redfin. Most sellers can find another low commission real estate broker that charges lower rates while maintaining a similar (or higher) standard of service.
If you’re selling a house that’s priced lower than most other local homes, Redfin may not even save you money. Its minimum fees tend to reduce and even eliminate the savings it otherwise offers. You may be better off getting a traditional realtor — you’ll pay roughly the same (or possibly even less), and you’ll likely get more personalized service.
If you’re mainly considering Redfin in order to save money, other real estate companies offer better service for the same or even better rates.
Clever Real Estate, for example, negotiates 1.5% listing fees with top local agents from major brokerages like Keller Williams and Century 21. In other words, you’re getting the best of both worlds: the savings of a discount broker like Redfin and the hands-on service and support of a top-rated conventional realtor.
Redfin vs. a realtor: How is Redfin different?
| Redfin | Traditional realtor | |
|---|---|---|
| 💰 Best savings for sellers | Win. Redfin’s 1.5% listing fee is lower than the standard 2.5-3% at most price points. | Potentially cheaper if you’re selling a house at a lower price for your area. |
| 💵 Best savings for buyers | Tie. Redfin has a buyer rebate program, but the savings aren’t usually as good as they seem. | Tie. While rebates are rare, a traditional agent may help you save by negotiating a better deal. |
| 🛠 Best service | Redfin’s team-based model means you won’t have a single agent handling every aspect of your transaction. | Win. Traditional realtors are usually more personally involved with each step of your transaction. |
| ⭐ Best agents | Redfin has only a handful of agents in most markets, making it difficult to compare agents in order to get the best one. | Win. Agent quality always varies, but with a traditional agent you’ll have more options to compare so you can choose the best agent for you. |
The main differences between Redfin vs. realtors at traditional brokerages come down to service and fees.
Fees: If you’re selling, Redfin is cheaper than a traditional realtor — charging 1.5% compared to the standard 2.5–3% that traditional agents charge. And if you sell and buy with Redfin, you get a 0.5% listing fee refund.
Redfin buyers can also earn a home buyer rebate on qualifying purchases. But the average rebate size is typically only around 0.2%, which doesn’t net you that much in savings.
Service quality: Redfin’s services also differ from traditional agents. While Redfin offers the same quantity of services that traditional agents offer, it utilizes a team-based approach. That can result in you getting less hands-on attention from your assigned agent.
Your assigned agent won’t necessarily handle most or all of the aspects of your transaction — like a traditional agent would. Instead, different people at Redfin will handle different stages of your house selling or buying journey.
Selling with Redfin vs. traditional agent
Redfin agents provide some legitimate benefits for sellers over traditional agents. They are cheaper — and while you will have to make some sacrifices in terms of service, those sacrifices are usually minor. Actual agent quality is neither better nor worse — although finding a local Redfin agent in rural areas can be tough.
But while Redfin has advantages for sellers, it also isn’t that special compared to the competition. Plenty of other discount brokerages offer even better savings for sellers, often with no sacrifice in terms of service. We recommend shopping around in order to get the best deal possible without compromising service.
Redfin fees for sellers
| Service | Fee |
|---|---|
| Listing fee | 1.5% (min. fees vary) |
| Buyer’s agent commission | 2.5-3% |
| Total commission | 4-4.5% |
Redfin’s standard listing fee is 1.5% — compared to the 2.5–3% that most traditional agents charge. If you buy and sell with Redfin within 365 days of each other, then you’ll get a check after closing worth up to 0.5% of the sale price, which effectively lowers your listing fee to 1%.
Keep in mind that the listing fee isn’t the only realtor commission you have to pay when you sell. You’ll also need to offer a buyer’s agent commission, which is typically 2.5–3%. So, your total commission with Redfin will be 4–4.5%. Use the calculator below to see how much you could potentially save with Redfin vs. a traditional realtor:
Redfin vs. realtor savings calculator
🚨 Minimum fees
Redfin’s low commission rates are subject to minimum listing fees, so some sellers may end up paying more than the advertised 1.5%. Minimum fees vary by location and they tend to be higher in hotter real estate markets, like San Francisco and Los Angeles. Check out Redfin’s minimum fees below. For metro areas or states not on the list, the minimum fee is $2,000.
| State/Metro | Minimum fee |
|---|---|
| Anchorage | $3,000 |
| Atlanta | $3,000 |
| Austin | $4,000 |
| Birmingham | $2,500 |
| Boise | $4,000 |
| Boston | $5,000 |
| Buffalo | $2,000 |
| Charlotte | $3,000 |
| Chattanooga | $3,000 |
| Chicago | $3,000 |
| Cincinnatti | $2,000 |
| Cleveland | $2,000 |
| Colorado Rockies | $2,000 |
| Columbus | $2,500 |
| Connecticut | $3,000 |
| Dallas | $3,000 |
| DC | $6,000 |
| Denver | $4,000 |
| Des Moines | $2,500 |
| Detroit | $2,500 |
| El Paso | $2,000 |
| Fayetteville | $2,000 |
| Flagstaff | $4,000 |
| Florida Panhandle | $2,000 |
| Fort Myers | $3,000 |
| Grand Rapids | $2,500 |
| Greater British Columbia | $4,000 |
| Greater Ontario | $4,000 |
| Hampton Roads | $3,000 |
| Hawaii | $6,000 |
| Houston | $2,500 |
| Indianapolis | $2,000 |
| Inland Empire | $5,000 |
| Jackson | $2,000 |
| Jacksonville | $3,000 |
| Kansas City | $2,500 |
| Knoxville | $3,000 |
| Lake Tahoe | $4,000 |
| Las Vegas | $3,000 |
| Little Rock | $2,000 |
| Los Angeles | $7,000 |
| Louisiana | $2,000 |
| Louisville | $2,000 |
| Maryland | $4,000 |
| Memphis | $2,000 |
| Miami | $3,000 |
| Minneapolis | $3,000 |
| Nashville | $3,000 |
| Nebraska | $2,500 |
| New Jersey - North | $4,000 |
| New Jersey - South | $3,000 |
| New Mexico | $4,000 |
| New York | $5,000 |
| Northern New England | $4,000 |
| Oklahoma | $2,000 |
| Orange County | $7,000 |
| Orlando | $3,000 |
| Ottawa | $4,000 |
| Palm Beach | $3,000 |
| Palm Springs | $4,000 |
| Philadelphia | $3,000 |
| Phoenix | $3,000 |
| Pittsburgh | $2,000 |
| Portland | $4,000 |
| Raleigh | $3,000 |
| Rhode Island | $3,000 |
| Richmond | $3,000 |
| Sacramento | $4,000 |
| Salt Lake City | $4,000 |
| San Antonio | $2,500 |
| San Diego | $6,000 |
| San Francisco | $7,500 |
| Savannah | $2,500 |
| Seattle | $5,000 |
| South Carolina | $2,500 |
| South Texas | $2,500 |
| Spokane | $4,000 |
| St. Louis | $2,500 |
| Tampa | $3,000 |
| Toronto | $5,000 |
| Tucson | $3,000 |
| Vancouver | $6,000 |
| Virginia | $5,000 |
| Wisconsin | $3,000 |
If you’re selling a home that is below the median value in your area, you need to watch out for Redfin’s minimum fees. They can be fairly high in some cities and states, where they may negate any savings you’d otherwise get from Redfin.
For example, if you live in an area where the minimum listing fee is $6,000, your house will need to sell for at least $400,000 in order to get Redfin’s 1.5% listing fee. Otherwise, you’ll have to pay the minimum listing fee of $6,000. In effect, that would mean you’re paying more than 1.5% — and potentially even higher than the 2.5–3% commission you would get from a traditional realtor.
The point is, don’t assume that Redfin is always going to save you money. Do your research to see what other companies may offer better savings.
What about Redfin Concierge?
Redfin also offers a premium service to sellers called Redfin Concierge, where they will help with renovations and staging. But it’s not worthwhile for most sellers. The listing fee is higher, at 2.5%, and it’s only available in a few markets.
If your home only needs a bit of sprucing up, paying an extra 1% on your listing fee — which can amount to thousands of dollars — may not make much financial sense. Instead, we recommend using those savings to pay for your own renovations and then going with either Redfin’s standard service or with another low commission brokerage.
Service quality for sellers
Traditional realtors tend to offer most people more personalized customer service than Redfin — and they are definitely a better fit if you’re selling your first home. But if you’re comfortable with a bit less hand-holding your home sale, the small trade-offs in customer service — especially combined with its savings — are pretty negligible.
One of the main differences with Redfin agents vs. realtors is that Redfin agents handle more transactions than traditional agents do. That requires them to work as part of a team, with different members handling different aspects of your transaction. So, instead of dealing solely with your agent, you may have different people showing your house, helping you with closing, or managing your listing.
A team-based approach isn’t inherently bad, but it does create opportunities for miscommunication if you have a complicated situation. When you work with a traditional realtor, you have a single contact point who can take care of any issues you may have. But with Redfin, you may find yourself talking to different people — or relying on different people to relay your concerns to the right person.
Redfin also relies heavily on its app and online dashboard throughout the selling process. If you’re comfortable using technology, this tech-driven approach may suit you. But if you’re less comfortable with it — or you just prefer having a human handle most of the transaction — then Redfin can feel a bit less personal than working with a conventional realtor.
Are Redfin agents good?
Redfin agents are licensed realtors and they’re neither better nor worse than traditional agents. Whether you work with a Redfin agent or a traditional agent, quality varies from one agent to another.
One issue with Redfin’s agents vs. traditional realtors is that Redfin isn’t available everywhere, especially not outside of major cities. You may have a harder time comparing Redfin agents where you live since there just may not be many — or any — available. So you may be more likely to end up with an agent who’s not a perfect fit if you go with Redfin than if you compared Redfin’s agents to other local realtors that offer savings in your area.
We always recommend comparing agents before choosing one, regardless of whether you use Redfin or a traditional realtor. Interview at least two to three agents to ensure you’re finding the best one. You’re never under any obligation to sign with an agent just for talking to them.
Also, while there’s nothing inherently wrong with Redfin agents, because they handle a lot of transactions, you may find that you get less individualized service. If this is your first time selling a house — or you just appreciate having more dedicated service — then that fact may be a major downside.
But if you’re comfortable with working with different agents or you feel like you can navigate the selling process without the hands-on service of a traditional agent, then Redfin may work fine for you.
Buying with a Redfin agent vs. traditional realtor
There’s usually not much of an advantage to using Redfin to buy a home versus a traditional realtor. Buyers don’t typically pay their agents out of pocket, and while Redfin does offer a rebate program to buyers, it has so many limitations that the actual savings you’re likely to see — if any — aren’t impressive.
Redfin’s service quality for buyers is generally good, but many buyers will have a better overall experience working with a traditional realtor.
Savings for Redfin buyers
There’s no difference in the realtor commission you pay when you buy with a Redfin agent vs. a traditional realtor. Redfin does offer a rebate program — called the Redfin Refund — that could help you save some money, but it’s only worthwhile if you’re actually eligible for it and you’re already planning to sell with Redfin.
MORE: Your guide to Redfin Rebates for buyers
Redfin’s refund generally offers less savings than you can get from other discount brands that offer home buyer rebates. Redfin isn’t transparent about how it calculates its refunds, but our own research has found that Redfin Refund is usually worth about 0.2% of the sale price. That’s way less than what the competition offers.
The Redfin Refund is also only available in the following states and metro areas:
The following are the three biggest factors that may affect your eligibility or lower your total refund amount:
- The purchase price of your home
- Local market conditions
- Your lender’s approval
Importantly, Redfin has minimum buyer commissions, meaning that it will only pay out a refund if Redfin’s commission is over 1% or $6,500 (whichever is greater). So, if the buyer’s agent commission on a $300,000 home is 2.5%, or $7,500, that means Redfin would automatically keep $6,500 of that commission, leaving only $1,000 left over for a refund (which could be further reduced thanks to other factors listed above).
While you can see an estimate of the Redfin Refund on each Redfin listing, the many factors that affect eligibility mean you should take these estimates with a grain of salt. Your final refund amount may end up being lower.
Service quality for buyers
Redfin offers the same services that a traditional realtor does, but they do it in a slightly different way. Redfin agents work as part of a team. Your designated Redfin agent may not handle every step of your transaction or may not be available to answer your questions or concerns right away.
Instead, at different steps of your home buying process, you may be dealing with different people from Redfin instead of just your agent. You’ll still get the same services as a traditional agent, but you won’t necessarily get them all from the same person.
There are advantages and disadvantages to Redfin’s team-based approach. For example, it’s usually easy to schedule a tour with Redfin since, even if your agent isn’t available, somebody on the Redfin team will be.
But it can also lead to drawbacks and you’ll generally have to take more of a lead in your house hunt. For example, you’ll probably be in charge of scheduling tours and getting shown different houses by different agents. So you can’t rely on one agent to remember what you did or didn’t like about a particular house. A traditional agent, on the other hand, would find homes based on your reactions to other homes they’d toured with you.
If you already know what you want and you’re comfortable evaluating a house without too much input from your agent, Redfin is probably fine. But if you want an agent to be with you at every step and have a more thorough understanding of what you’re looking for, you’re better off opting with a traditional realtor.
The best Redfin competitors
| Company | Listing fee | Avg. rating |
|---|---|---|
| Redfin | 1.5% (min. fees vary) | 3.7 |
| Clever | 1.5% (min. $3,000) | 4.9 |
| Houwzer | $5,000 | 4.9 |
| SimpleShowing | 1% (min. $5,000) | 4.9 |
Redfin isn’t the only company offering discounted realtor fees. Alternatives can land you savings that are just as good or better. Plus, some of them work exclusively with traditional agents, so you can get the personalized service of a traditional realtor along with the savings of Redfin.
Clever Real Estate
National
- Listing fee: 1.5% (min. $3,000)
- Available nationwide
- Full service, zero trade-offs
Sellers save an average of $5,625 when they list with Clever, compared to a traditional 3% listing fee.*
*Average savings based on listing fees at four common price points: $100,000, $250,000, $500,000, and $750,000.
Clever has a 4.9 out of 5 rating (1,995 total reviews) on popular review sites like Google, Facebook, and Trustpilot.
Clever is available to sellers and buyers nationwide.
Clever offers 1.5% listing fees, just like Redfin. But when you go through Clever, you don’t work with “discount agents.” Clever matches you with top local realtors from name-brand brokerages like RE/MAX and Coldwell Banker. You get multiple matches to choose from, full service and support, and thousands of dollars back in your pocket come closing time.
In other words, Clever offers the best of both worlds: the low rates of a discount brokerage and the personalized service and support of a top-rated conventional realtor. Its matching service is also 100% free with no obligation, so there’s no risk in signing up to see who they match you with. You can walk away at any time.
Houwzer
Regional
- Listing Fee: $5,000
- Limited Service Area
- Premium Marketing
Sellers save an average of $7,000 when they list with Houwzer, compared to a traditional 3% listing fee.*
*Average savings based on listing fees at four common price points: $100,000, $250,000, $500,000, and $750,000.
Houwzer has a 4.8 out of 5 rating (1,400 total reviews) on popular review sites like Google, Yelp, and Zillow.
Houwzer is available in the following areas: FL, MD, NJ, PA, VA, DC.
Houwzer is a real estate brokerage that offers a flat $5,000 listing fee instead of a percentage-based listing fee. If you’re selling a high value home, that can translate into significant savings. For example, if you sold an $800,000 home, a $5,000 listing fee would be equivalent to about a 0.6% fee.
However, there are drawbacks to Houwzer’s service. For one, it is only available in select markets, primarily in the eastern United States. Secondly, like Redfin, Houwzer uses a team-based approach that may feel less personalized than using a traditional realtor.
And Houwzer’s flat fee approach isn’t right for all sellers. If you have a home that is worth less than $500,000, Houwzer probably won’t save you any money.
SimpleShowing
Regional
- Listing fee: 1% (min. $3,500)
- Limited service area
- Full service, few trade-offs
Sellers save an average of $6,375 when they list with SimpleShowing, compared to a traditional 3% listing fee.*
*Average savings based on listing fees at four common price points: $100,000, $250,000, $500,000, and $750,000.
SimpleShowing has a 4.9 out of 5 rating (335 total reviews) on popular review sites like Google, Yelp, and Zillow.
SimpleShowing is available in the following areas: FL, GA, TX.
SimpleShowing is another discount real estate broker that offers impressive savings. It advertises 1% listing fees, which has Redfin beat. But it also has a $5,000 minimum fee. Depending on your price point, that could result in you paying more than the advertised 1% rate at closing.
In terms of service quality, SimpleShowing offers a similar experience to Redfin and Houwzer. It provides the same basic services as traditional realtors, but it has fewer agents to pick from, and those agents tend to work with a lot more customers at once. That could limit their ability to provide as much dedicated service as you’d expect from a traditional agent.
Simple Showing also has a lot less coverage than Redfin. It currently only serves select markets in Florida, Georgia and Texas.
Redfin vs. realtor FAQs
Are Redfin agents better than traditional realtors?
Redfin agents are neither better nor worse than traditional realtors. Both are fully licensed and generally provide good service — although quality will always vary from one agent to the next. While Redfin agents do offer a discounted listing fee, those fees aren’t the best in the business. You can get an ever lower listing fee from a discount brokerage, many of which use traditional realtors.
Should I use Redfin?
If you’re selling a house that’s below the average listing price or you’re buying a house, Redfin offers few advantages. Plus, other low commission companies offer savings that are as good as or better than Redfin’s.
What does Listed by Redfin mean?
Listed by Redfin simply means that a Redfin agent is representing the seller of the house. It’s essentially no different from any for sale sign you’d see from one of the big brokerages, like Coldwell Banker or Berkshire Hathaway.
Are Redfin agents realtors?
Yes, Redfin agents are fully licensed and are, therefore, just as much realtors as traditional real estate agents are.
Do Redfin agents get commission?
Yes and no. Unlike most traditional agents, Redfin agents get paid a base salary. But they also get a bonus for each transaction, which is based on the final sale price. According to Redfin, in their first year agents make approximately 30% of their income from their base salary and 70% from bonuses.
Is Redfin better than Realtor.com?
Redfin and Realtor.com both have the same listings since they both get their data from the same sources. If you’re buying, there’s no advantage to using one website over the other. To find out which websites are best, check out our rankings of top websites for home buyers.
Related links
The Best Discount Real Estate Brokers for Every Budget: If you’re looking to save money on your next real estate transaction, check out our list of the best discount real estate brokers.
The Best 1% Commission Realtors + Brokerages (2022 Rankings): A 1% commission brokerage can help you save thousands of dollars on your home sale. Check out the ones that offer the best savings while maintaining excellent customer service.
What Companies Offer the Lowest Real Estate Commission Fees? Wondering which company can save you the most on your realtor fees? Check out this list to find out.
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