Companies like Redfin and Opendoor have turned the real estate industry on its head. Rather than use a traditional real estate agent, home sellers may find that using these alternative companies can help them list properties on their own time and save money in the transaction.
But what, specifically, do these companies do and which one offers a better deal for sellers?
Read on for a comparison of Opendoor vs Redfin to learn more about their business models, what users are saying, and if there are any alternatives to using these non-traditional real estate companies.
Opendoor vs. Redfin: Company Overview
The internet has made it possible to sell or buy almost anything online, including homes. Companies like Opendoor and Redfin both embrace the era of real estate online, but the two don’t quite operate the same.
Redfin is a full-service real estate brokerage that operates at scale across the country. They straddle the line between the online and offline worlds, which relies on modern digital technology and real-world agents in local markets. In addition to having agents that can help clients buy and sell homes, as well as provide mortgage underwriting and loan origination services.
Similar to Zillow, buyers can browse properties from the comfort of their own home and then connect with an agent to see them in person. But unlike Zillow, Redfin agents are employed by Redfin.
Redfin also offers a direct purchasing service called RedfinNow, in which it will purchase your home directly from you. It’s touted as a time- and money-saver for the seller since you don’t have to deal with showings, staging, and marketing. However, keep in mind that this approach is similar to the cash-for-houses companies, which means you likely won’t get top dollar for your home.
Redfin touts its biggest benefit as being cheaper for the seller. For sellers, Redfin charges a lower commission rate of just 1%, but keep in mind you’ll still have to pay the normal buyer agent’s commission.
However, if you’re expecting all the same services and guidance as you’d get with a traditional real estate agent, Redfin might not be the way to go. You may find that Redfin is more of a hybrid approach that’s a little bit of DIY with a little bit of full-service expertise.
Opendoor is a startup that specializes in helping homeowners sell their homes quickly. They built their business to help sellers close on all-cash deals quickly. In most of their 20 markets, sellers receive an offer within 24 hours and can close in as little as 10 days.
Opendoor operates like most iBuyers: almost everything takes place online, saving sellers time and effort throughout the process. Their goal is to streamline the entire process, making it easy for anyone to sell their home quickly to Opendoor.
Another big advantage of Opendoor is that you don’t need to make any repairs or renovations to your home to sell. You get an offer for your house as-is.
However, speed and convenience come with a price. Aside from not always getting a fair market offer for your home, Opendoor has many stringent requirements on the homes they buy. Their fees, which range between 6% and 14% can be more expensive than using a traditional agent.
What Others Are Saying
If you want to learn more about the results of using Opendoor or Redfin, look no further than what others have experienced.
Redfin holds a 1.4-star rating on Consumer Affairs, with users saying that Redfin is a good choice for millennials but not really anyone else. Their top reviewers say they’re responsive, attentive to their clients during the process, and knowledgeable.
However, some users claim that Redfin posted their homes as listings when they weren’t for sale. Many users have complained about their customer service, fake listings, poor photography quality, and agents giving clients misleading information.
Opendoor has garnered some positive attention from the media. Many users are surprised that they didn’t receive low-ball offers like they were expecting.
Opendoor’s Better Business Bureau profile shows 30 complaints, all of which have been answered by the company. These complaints mainly stem from a lack of follow-through on repairs that buyers believed would be taken care of. Users also say it’s hard to get in touch with a company representative, and most responses are automated.
Is There an Alternative to Opendoor or Redfin?
Opendoor and Redfin are two of the names heard across the country when it comes to real estate transactions. But they’re not the only ones who are reshaping the industry.
Clever Partner Agents are full-service, top-rated agents in their local markets. The only difference is that our Partner Agents work for a flat-fee commission, helping sellers to keep more of their home sale in their pockets without sacrificing the support and guidance of an experienced real estate agent.
Connect with Clever today and let us introduce you to a local Partner Agent that can help you streamline your home sale for top dollar and save thousands in the process.