Choosing between Redfin, a discount brokerage, and a traditional realtor involves considering your priorities and the differences in service and cost.
- Traditional agents: Most agents charge a total commission rate of 5-6% but offer more personalized attention and additional services, like drone photos, home staging, and open houses. You may want to go with a traditional agent if you desire more service and don't mind paying a bit more for it.
- Redfin agents: A lower listing fee of 1.5% saves you about $5,000 on a $500,000 home sale. But, these agents handle a significantly higher volume of transactions—closing nearly three times as many deals each year as traditional agents.[1] This high turnover might impact the level of personalized service you receive. Also, online customer reviews are mixed.
Ultimately, the choice depends on what you value more: the potential cost savings with Redfin, or the extra service that may come with a traditional realtor.
Need an experienced agent without the high fees? Clever Real Estate has you covered. It connects you to experienced local agents for just a 1.5% listing fee, ensuring you receive expert service at a great value. Start by taking our quick quiz to connect with a leading local agent today!
Redfin vs. realtors: A breakdown
| Feature | Redfin | Realtors | Clever |
|---|---|---|---|
| Service | Tech driven, team-based approach | Usually one-on-one, personalized | Usually one-on-one, personalized |
| Listing fee | 1.5% | 2.5-3% | 1.5% |
| Agent quality | Mixed | Mixed | High-quality, vetted agents |
We've evaluated Redfin against traditional realtors typically accessed through local referrals or platforms like Zillow, and we've also looked at how they stack up against a well-known discount brokerage, Clever Real Estate.
While Redfin and Clever Real Estate both emphasize cost savings and efficient service, traditional realtors are generally focused on providing personalized attention.
However, Clever uniquely blends the advantages of both approaches by offering competitive low fees while maintaining a commitment to high-quality, personalized service. We think this combo makes Clever Real Estate an attractive option for many home sellers seeking both value and personalized assistance in their real estate transactions. Fill out this short quiz to get matched with agents today!
Key tip: Compare multiple agents
There's no downside to speaking with or meeting a Clever agent, a Redfin agent, and a traditional realtor in your area. You can meet with agents and get a home value estimate for free, with no obligation or commitment.
Ultimately, we think that your experience with Redfin will heavily depend on the agents available locally. Before making your decision, take the time to read customer reviews and speak with several agents to see who's the best fit for you. Compare and review the agent's experience, track record, and communication. This process helps you to select an agent who meets your specific needs and goals as a seller.
With Redfin, you benefit from a lower 1.5% listing fee on most homes, which typically undercuts traditional realtor rates. Again though, we think you should focus on evaluating the level of service and support each Redfin agent offers and whether you feel a strong connection with them.
Remember, traditional agents, including those found through Clever, may offer more personalized support and potentially sell your home for a higher price. This hands-on approach could offset any initial savings you might achieve with Redfin's lower commission.
Redfin vs. realtors: The differences
When deciding between Redfin and conventional realtors, it's crucial to understand the key differences that might affect your experience.
Experience
Working with a conventional realtor typically involves one-on-one interaction, providing a highly personalized service. Meanwhile, Redfin utilizes a tech-driven, team-based approach, which may result in less personal interaction.
Although Redfin agents often handle many transactions, which showcases their experience, this high volume can lead to reduced communication and the possibility of being passed to another team member, which may negatively impact service quality.
Seller savings
Redfin offers a lower listing fee of 1.5%, compared to the traditional 2.5–3% commission, potentially saving you $5,000 to $10,000 or more, depending on your home's sale price.
However, achieving a high sale price is crucial; a lower commission does not guarantee a sale that meets your expectations.
Whether you choose Redfin or a traditional realtor, you will likely need to pay a competitive buyer's agent commission of about 2.5–3%. While recent changes from the NAR lawsuit settlement have changed some compensation structures, in many markets, sellers still typically cover this fee.[2]
Services
The range of services offered by Redfin agents and traditional realtors is largely similar, including professional photography, home staging advice, open houses, and help with all of the required paperwork.
However, traditional realtors generally provide a more personalized involvement in your home sale or search process.
Agent quality
This category is a wildcard with both Redfin and conventional realtors. With over a million actively licensed realtors nationwide, there are bound to be some bad apples in the mix. To navigate this challenge, consider using services like Clever, which vet agents thoroughly and ensure you connect only with top-rated, experienced local professionals.
Selling a home with Redfin vs. conventional realtor
Redfin: Salaried agents
Redfin agents work for a salary, and they can earn bonuses for hitting specific metrics.[3]
Unfortunately, that doesn’t provide the same incentive to help sell your home for more money that a commission-based income does. Redfin agents are more incentivized by volume, so the more homes they can sell, the better. That’s not to say they aren’t working hard for their clients, but you might not get the personalized dedication you’ll likely get with a local, commission-based agent.
Conventional realtor: Commission-based agent compensation
Conventional listing agents earn their income entirely through commissions, earning their pay only after successfully selling a client’s home. This commission-based structure typically ensures highly dedicated service, as agents are motivated to be available whenever you need them.
This compensation method also drives agents to secure the highest possible sale price for your home, as their earnings are directly tied to the final sale price.
Plus, the desire for a timely sale encourages agents to actively engage in setting a realistic price, assisting with staging and showcasing your home, marketing it effectively, and negotiating on your behalf. This alignment of interests ensures that both you and your agent benefit.
Redfin vs. realtor pricing
» COMPARE: Best low commission realtors
You’ll pay 1.5% of your purchase price to your Redfin seller’s agent or an average of 2.5–3% to a conventional listing realtor.
However, sellers in high-cost housing markets should review Redfin's commission disclosures, as minimum listing fees might surpass the standard 1.5% rate. For example, Redfin has established a minimum commission of $5,500 in Austin, TX. Consequently, if you're selling a home priced below $366,000, you would be paying more than 1.5%.[4]
Clever listing agents also charge a low 1.5% listing fee ($3,000 minimum) for an in-person, hands-on experience. But unlike Redfin, it's a flat rate that doesn't vary by price or market.
Seller services and support
Full-service brokerages, including Redfin, offer most, if not all, of the services you’ll get with a traditional realtor. Redfin has a tech-savvy approach to real estate sales. So, that’s a plus for the homeowner who enjoys taking care of things online.
Redfin Concierge: Why you should avoid it
Be cautious with Redfin's concierge service. Initially offered as a premium listing service with a 2.5% commission, it has been restructured into a line of credit that homeowners can use to finance improvements like staging, repairs, and upgrades.
This program is designed to improve your home’s appeal through staging, repairs, and upgrades, helping achieve a higher sale price. There are no upfront costs, as payment is deferred until the home sells.
However, this program essentially involves borrowing debt to fund renovations, without any guaranteed return on investment. This approach could pose financial risks, particularly if the home does not sell as quickly as anticipated or if it fails to sell at all. Consult with a financial advisor before committing to any decisions that involve significant investment or risk.
Buying a home with a Redfin agent vs. a realtor
Remember that buying a home in a seller’s market can be stressful and demoralizing. As a result, you may want and need some hand-holding. That situation will likely give a conventional realtor the edge over Redfin’s less personal, team-based model. Still, personal preference will probably be the determining factor.
Buying with a conventional realtor
Like conventional listing agents, buyer’s agents also work for commission. So, they have the same strong commission-sales-based motivation.
Conventional buyer’s agents take their cut from the purchase price. That may encourage some traditional realtors to show you more houses on the pricier end of your scale. However, their drive to make that sale can lead to more showings, greater responsiveness, and innovative solutions to finding an available home you’ll love and making it work with your budget.
Buying with a salaried Redfin property search agent
When you choose Redfin for home purchasing services, your agents earn salaries and bonuses. They’re rewarded for completed home sales, but their income isn’t solely dependent on the final purchase price. So, their motivation to find you a home may not be as fierce, but neither is their incentive to show you costlier options.
Services and support
Buyer’s agents search for homes their clients will like and can afford. They put in winning bids and navigate successful closings. Many of them also help buyers secure mortgage funding. When it’s a seller’s market, those agents must work overtime to beat the competition. Many of them come up with unique strategies to help your offer win.
You probably won’t see any striking differences between Redfin's service offerings and those of a conventional agent since both options are full-service brokerages. But there may be some inequalities in the level of support they offer. Redfin is a transactional volume business, which often translates to busy agents with limited time for each client.
We should also mention that the Redfin platform is an excellent resource for researching homes available for sale, but you don’t have to use a Redfin agent to take advantage of the platform.
Quick summary: Redfin vs. realtor
- Agent quality differs, so interview Redfin agents and conventional agents to find the best fit.
- Redfin service isn’t available nationwide. Conventional agents are.
- Conventional agents work for a percentage-based commission, while Redfin pays their agents a salary. This means conventional realtors typically deliver more personalized service with one-on-one attention.
- The Redfin process is more tech-driven and remote than the conventional method.
- Redfin’s base listing fee is 1.5%, compared to the standard conventional agent fee of 2.5–3%. Working with Clever Real Estate (1.5% listing fee) will save you the same amount.
- Redfin offers some buyers a limited rebate averaging 0.22%.
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FAQ about Redfin vs. realtor
Is using a Redfin agent a good idea?
Using a Redfin agent is a good idea if you want to save money and don’t care as much about a personalized real estate agent experience. But if saving money is your main priority, there are better options available that will save you more and get you better service. Interview multiple agents from different companies before you decide to go with a Redfin agent.
Should I use a Redfin agent to buy a house?
You should use a Redfin agent to buy a house if you want a tech-driven experience for a lower listing fee than you’ll pay with a conventional real estate agent. That said, Redfin agents handle several transactions at once, so there’s a risk the service you receive will be less personal than what you’ll get from a conventional agent.
Why is Redfin so popular?
Redfin is popular because it offers built-in commission savings over traditional brokerages and real estate agents. Its tech-driven approach is also a big hit with savvy online users who enjoy doing their own research and cost comparisons from the comfort of their home or office.
Is there a better option than Redfin or a conventional brokerage?
Yes, there are better options than Redfin that will save you money and give you a more hands-on, personal experience. We recommend starting your search with the agent-matching service Clever Real Estate because it combines the best of both worlds with qualified, vetted conventional agents who sell your home for a 1.5% listing fee and offers buyers cash back on eligible properties.
