Redfin vs. Realtor: What Do You Really Get?

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  Written by Michael Warford

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  Edited by Josiah Wilmoth

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  Reviewed by Jesse Sheldon

Redfin vs. realtors: Differences | Selling with Redfin | Redfin fees | Buying with Redfin | Alternatives | FAQ

Redfin is a decent alternative to a traditional realtor if you’re looking to save money. It offers low rates compared 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 the same rates — and better hands-on service.

» MORE: Find the best discount brands near you!

Redfin vs. realtor: How is Redfin different?

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. It charges 1.5% compared to the standard 2.5–3% rate. And if you sell and buy with Redfin, you get a 0.5% listing fee refund.

However, your house may sell for less with a Redfin agent, biting into your savings on realtor fees. Redfin agents get paid a salary instead of commission. Since their pay isn’t connected to how much your house sells for, they may not be as motivated to sell your home for top dollar.

If you’re buying, you likely won’t get savings with Redfin anymore. Redfin used to offer a home buyer rebate, but the company is discontinuing the program. You can call your local Redfin office to see if the rebate is still offered in your area.

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.

Should I use a Redfin agent?

For many sellers, Redfin is a decent alternative to a traditional realtor. But if you’re mainly considering Redfin to save money, you might want to shop around. You can find other low commission real estate brokers that offer the same rates and better service.

You might experience lower service quality with Redfin because of its business model. Redfin agents are salaried, so they get paid whether or not they sell your house. Traditional agents get paid only if and when your house sells, which incentivizes them to offer more hands-on, personalized service.

When searching for an agent, focus on the quality of the agent instead of which broker they work for. An agent’s years of experience and number of transactions they’ve completed are much better indicators of agent quality.

If you’re looking for an experienced agent, Clever Real Estate can connect you with top-performing agents from major brokerages like Keller Williams and Century 21. With Clever, you get the best of both worlds: a 1.5% listing fee like Redfin AND the hands-on service and support of a top traditional 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.

Selling with Redfin vs. traditional agent

Redfin agents provide sellers some legitimate savings compared to traditional real estate agents. But the quality of service from Redfin agents may be lower, since they’re often new in their careers. They also get paid a salary instead of commission, so they’re less incentivized to offer personalized service. And finding a local Redfin agent in rural areas can be tough.

Redfin also isn’t that special compared to the competition. Plenty of other discount brokerages offer similar or better savings for sellers, often with no sacrifice in service. We recommend shopping around to find the best overall value.

Redfin fees for sellers

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.

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 real estate 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 realtors 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 real estate agent.

Buying with a Redfin agent vs. traditional realtor

Redfin doesn’t offer any buyer savings compared to a traditional realtor. The company used to offer a buyer rebate program called the Redfin Refund, but it’s being discontinued.

Buying with Redfin leads to savings only if you also sell with Redfin, in which case you get a 0.5% refund on your listing fee.

One possible disadvantage of buying with Redfin is that a showing agent will likely show you houses instead of your buyer’s agent. Showing agents are often part-time professionals who get paid per showing or by the hour, and they may not have as much knowledge about each property as you’d expect.

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 conventional realtor.

The best Redfin competitors

Redfin isn’t the only company offering discounted real estate agent 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

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 real estate 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

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 conventional 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

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 FAQ

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 and Brokerages: 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.