Redfin vs. Realtor: An Easy Choice

Choosing between Redfin and a traditional realtor? You must carefully weigh the benefits and trade-offs to get the most out of your home sale.

Thankfully, the choice is pretty straightforward:

• Redfin offers lower commission rates, typically 1.5%, which can lead to significant savings. However, Redfin's team-based approach may result in less personalized service, and you'll likely be working with multiple specialists rather than a single dedicated agent.
• Traditional realtors may charge higher fees but provide one-on-one support throughout the process. This can be especially valuable if you prefer a more hands-on approach or need extra guidance during your home sale.

Ultimately, the choice between Redfin and a traditional realtor comes down to your priorities (saving on fees versus receiving personalized service) and the quality of individual agent you choose.

If you're drawn to Redfin mainly because of its lower realtor commission, know that other low commission brokerages may offer similar savings and better service. We recommend shopping around for a real estate agent who fits your budget and expectations.

Redfin agents vs. realtor: Key differences

🔎 How they're paid. Redfin agents usually earn a salary, unlike traditional realtors who work on a percentage-based commission for each sale. This is pretty rare, as most agents work on a commission basis.

👥 Team-based vs. agent approach. Redfin agents don’t manage every aspect of your sale themselves. Instead, they work with a team of specialists, including marketers and transaction coordinators. This differs from realtors at other brokerages, who often handle most of the transaction.

💰 Commission differences. Selling with a Redfin agent can save you 20–30% on realtor commissions. The national average real estate commission rate is 5.32%, typically split between the listing and buyer’s agents. Redfin charges a 1.5% listing fee, significantly lower than the typical 2.5–3% rate.

🚨 Redfin’s high minimum fees. Due to its fee structure, the brokerage's 1.5% commission isn’t available in all markets. For example, the minimum commission in San Francisco is $9,000; in Boston, it’s $5,500. This means you could end up paying more than 1.5% for lower-priced homes.

Redfin services: What to expect

Redfin agents offer many of the same general services as traditional real estate agents, including help with pricing, marketing, showings, offers, paperwork, and closing coordination.

But Redfin agents manage and render these services differently. If you're wondering if and why Redfin is bad, the biggest downside can be the spotty, hands-off service, especially for inexperienced home buyers and sellers.

Consider these differences in how Redfin works for sellers compared to traditional agents.

Redfin fees

When you sell with a Redfin agent, you can expect to save between 20–30% in realtor commission fees.

The current average real estate commission rate nationwide is 5.32%. This total fee is typically split down the middle between the two agents handling the sale:

• Listing fee: Paid to the listing agent for helping the seller list and sell the home, and averaging 2.74% nationwide.
• Buyer’s agent fee: Paid to the buyer’s agent for bringing their client to purchase the home, and averaging 2.58% nationwide.

Discount real estate brokers like Redfin offer savings on the listing fee side of that equation — i.e., Redfin charges sellers 1.5% compared to the average fee of 2.74%. You may or may not be on the hook to cover the buyer's agent, as the fee is negotiable between sellers and buyers.

Redfin services

Redfin agents offer many of the same general services as traditional real estate agents, including help with pricing, marketing, showings, offers, paperwork, and closing coordination.

But Redfin agents manage and render these services differently. If you're wondering if and why Redfin is bad, the biggest downside can be the spotty, hands-off service, especially for inexperienced home buyers and sellers.

Consider these differences in how Redfin works for sellers compared to traditional agents.

1. Higher volume, less personalized attention

Redfin agents closed an average of over 27 deals in 2023, more than three times as many deals as agents at other brokerages named in the top 10.[1]

While this high volume demonstrates their efficiency and success, it could also mean that Redfin agents may have less time to dedicate to each client. They might need to delegate some tasks to team members or take longer to respond to inquiries.

This might not pose a problem for confident or experienced home sellers. However, sellers who prefer frequent communication and more personalized attention may find working with a high-volume agent less satisfying.

2. Team-based support model

In a conventional sale, you can go to your real estate agent or one of their direct team members for everything. This approach helps build trust and rapport, with clear accountability.

At Redfin, you’ll work with a larger team of specialists. If you have concerns about how your home is marketed, you must address them with the marketing specialist. Issues with your open house schedule? That might involve another team member.

This team-based model can be more efficient, but it may also feel confusing or frustrating if not managed well.

It’s worth noting that top-producing agents at other brokerages may also work within a team structure. So, it's important to understand how communication will be handled regardless of the brokerage you choose.

3. Tech-driven process

Much of the selling or buying process happens through Redfin’s mobile app and online dashboard.

Redfin’s tech-centric approach may be great for some who prefer communicating and coordinating this way. Still, it could be frustrating or confusing for others — particularly the less tech-savvy among us.

Selling or buying a home can be complicated and stressful. Sometimes it’s preferable to get answers in real-time, either in person or over the phone.

Key tip: Focus on the agent, not just the brand

Not all real estate agents are created equal, and this holds true for Redfin. While Redfin’s "agent finder" tool offers transparency by providing key details like customer reviews, past deals, and top-performing agents in your market, it's important to look beyond just the metrics.

The tool allows you to search for agents by neighborhood or zip code, and even filter by buyer's or seller's agents, as well as Redfin Premier agents specializing in high-end properties.

By selecting an agent's profile, you can see their total sales closed, sales volume, and highest-recorded sales price.

However, focusing too much on numbers can make it easy to overlook the importance of finding an agent you connect with and who understands your goals. We recommend connecting with agents and setting up interviews to ensure you find someone who aligns with your needs and priorities.

» LEARN: How to choose a realtor to sell your home

Selling with Redfin: Pros and cons

Selling with Redfin has its advantages and drawbacks.

• On the plus side, Redfin offers significantly lower commission, typically around 1.5%, which can save sellers 20–30% compared to traditional real estate transactions.
• The company's tech-driven process and team-based support model streamline many aspects of the home-selling experience, making it a good option for those comfortable with technology and looking for efficiency.

However, there are trade-offs to consider. 

• Redfin's minimum fees in certain markets can negate some of the savings, especially for lower-priced homes.
• Its team-based approach may result in less personalized service, with busier agents handling more clients and less direct attention. This can be a downside for sellers who prefer one-on-one support and a more hands-on approach.

Redfin and realtor alternatives

After comparing Redfin agents vs. realtors, you're likely wondering if there's a middle ground.

Stellar service at a lower commission rate? À la carte options for advanced home sellers? We've got you covered with these Redfin agent alternatives.

1. Get pre-negotiated low rates with traditional realtors

If you’re looking to save on commission but want to avoid customer service trade-offs, consider working with a discount company that negotiates low rates with traditional realtors on your behalf, like Clever Real Estate.

Clever only works with top local brokerage agents like Berkshire Hathaway and RE/MAX. Since Clever connects its partner agents with you at zero up-front cost, it can pass the savings on to you.

This means you'll get the same service and support you'd expect from a traditional realtor, but you'll pay a fraction of the typical price.

2. Compare Redfin with other discount brokers

Redfin is just one of the ever-increasing discount brokers out there.

Several national, regional, and local brands are available, each offering a variety of price points, service models, and pros and cons.

Generally speaking, most will come with some sort of variation on the same basic catch:

You can save big on commission fees, but you’ll likely trade-off something (or assume some sort of risk) in return — usually customer service.

We recommend shopping around and comparing Redfin against one to two discount brands — along with one to two traditional agents — to get the best possible value and fit for your needs.

» MORE: The ultimate guide to discount brokers

3. Sell for sale by owner (FSBO)

Selling your home as an FSBO means you're taking on the entire process yourself without the help of a listing agent, which can save you the cost of paying a listing commission, which averages 5.49% nationwide.

This approach gives you full control over the sale, from setting the price to negotiating with buyers, and using a flat fee MLS service can help make your property visible on the same platforms as agent-listed homes (think: Zillow, Trulia, Realtor.com).

However, FSBO has challenges, particularly for those without real estate experience:

• Studies have found that FSBO homes sell for close to $100,000 less than agent-assisted home sales.[2]
• In addition, more than one-third (36%) of sellers acknowledge making legal mistakes due to the absence of an agent.
• Handling every sale aspect—marketing, showings, negotiations, and closing—can be overwhelming and time-consuming for a nonprofessional, potentially leading to mistakes or a lower sale price.

FSBO can be a good fit if you sell a highly desirable property in a hot market, have the time and knowledge to manage the process, and value independence.

However, if maximizing your sale price and having professional support are priorities, working with a real estate agent might be the better choice.

⚠️ Warning: Be aware of the FSBO risks!

Selling your home without an agent can be more challenging than it seems. Our survey of home sellers revealed that many FSBO sellers faced significant hurdles, including:

• Overwhelming process. 52% of FSBO sellers felt burdened by managing the entire sale independently.
• Buyer distrust. 43% experienced distrust from buyers because an agent didn’t represent them.
• Home preparation. 32% struggled to get their house ready for potential buyers.
• Offer evaluation. 31% found comparing offers difficult and understanding contingencies.
• Pricing challenges. 30% had trouble setting the right price for their home, likely due to a lack of professional guidance.

Consider partnering with an experienced agent to navigate these challenges and maximize your chances of a successful sale. Clever can match you with top local realtors for further assistance.

4. Sell to a 'we buy houses for cash' company

Selling to a company that buys houses for cash can be a quick and convenient option for homeowners looking to offload properties quickly.

These companies are often willing to purchase homes in any condition, including those in poor shape or vacant lots. Sellers can typically receive a cash offer within days, sometimes even hours, and enjoy flexibility in choosing their move-out and closing dates.

However, the convenience comes with significant trade-offs:

• Cash offers from these companies are usually well below market value, sometimes by as much as 50%. Our survey of real estate investors who flip houses found that they aim to offer no more than 68% of a home's after-repair value (ARV).
• Additionally, further deductions may be made to cover repair costs after in-person inspections.
• Sellers may also experience persistent follow-up from these companies, even after declining their services.

This option is best suited for sellers prioritizing speed over maximizing profit, such as those needing to sell quickly, inheriting an unwanted property, or lacking the funds or desire to make repairs.

However, it's not ideal for sellers who want a fair price or have properties that could sell well through traditional methods.

5. Sell to an iBuyer

Selling to an iBuyer can be a quick and convenient option for homeowners looking to sell their property with minimal hassle.

iBuyers, or instant buyers, are large technology companies that make fast cash offers on homes, often within days or hours of initial contact. Compared to other cash buyers, they typically offer prices closer to fair market value, and some even provide unique options like home trade-ins, giving sellers flexibility.

However, while iBuyers offer speed and convenience, they often have drawbacks.

• Service fees can eat into your profits. These can reduce your profits, making traditional sales potentially more lucrative despite an attractive cash offer.
• Selective criteria. iBuyers often prefer newer homes that are in good condition.
• Limited availability. iBuyers may not operate in all areas, limiting your options.

Choosing to sell to an iBuyer might be a good fit if your home meets their criteria, you prioritize a fast and easy sale, and you’re willing to trade some potential profit for the convenience and certainty of a quick cash offer.

But, if maximizing your sale price is your top priority, exploring a conventional sale might be a better route.

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