Redfin vs. Realtor: An Easy Choice

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By Steve Nicastro Updated November 20, 2024

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Thinking about using Redfin to save on realtor commissions? While Redfin claims to save sellers thousands with its 1.5% listing fee, its team-based approach has sparked mixed reviews.

So, why do some sellers think Redfin is bad? Common complaints include its team-based service model, which can feel impersonal, and high minimum fees in certain markets that may offset savings, especially for lower-priced homes.

In my experience, traditional realtors often justify their higher fees with one-on-one guidance and local expertise, leading to smoother sales and higher profits. If savings are your top priority, other low-commission options offer better service without the compromises.

One of the easiest ways to compare realtors is to use a free service like Clever, which matches you with top agents in your area.

With Clever, you get the same 1.5% listing fee that Redfin offers. And you can choose from multiple agents with the best sales performance and customer reviews in your area. Agents come from reputable brokerages like Keller Williams and Berkshire Hathaway.

When we send you potential matches, you can interview as many agents as you’d like, with no obligation to move forward. Start comparing top agents in your area!

Redfin vs. realtor: Key differences

🔎 How they're paid. Redfin agents usually earn a salary, while a traditional agent works 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.

📈 Higher transaction volume. Redfin agents handle three times as many clients as other realtors. In 2023, Redfin agents closed an average of 27 deals, compared to just 10 closed by realtors nationwide.[1]

💰 Lower commission rates. 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. That 1.5% fee also drops to just 1% if you also buy a home with Redfin. 

🚨 High minimum fees in some markets. 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 20–30% in realtor commission fees.

Redfin charges a 1.5% listing fee, lower than the national average of 2.74%. However, this drops to 1% if you buy and sell with Redfin—a potential bargain for those making dual transactions.

However, Redfin's pricing isn't always as straightforward as it seems. The company has minimum commission requirements in many markets, making the cost higher than 1.5% for modestly priced homes. For example, the minimum commission in San Francisco is $9,000, while in Boston, it’s $6,000.[2] 

Also, while Redfin’s listing fee is discounted, you may still need to cover the buyer’s agent fee, which averages 2.58% nationwide. Due to recent NAR settlement changes, these fees are now negotiable between buyers and their agents. However sellers often still agree to cover the fee in many markets.

💡 Looking for savings without surprises? Clever Real Estate connects you with top-rated agents in your area who charge the same 1.5% listing fee as Redfin but without the risk of hidden costs or minimum commission thresholds. Fill out this short quiz to get matched to top local agents today.

Do I need to pay the buyer's agent?

Redfin's former strategy was to encourage sellers to offer a competitive buyer’s agent fee to incentivize buyer’s agents to show the home and attract more offers faster. However, recent legal events have changed that.

After losing a lawsuit over their practices in 2024, the National Association of Realtors agreed to change how real estate professionals do business.

As of August 2024, buyer's agents are required to sign an "agency agreement" before providing services to a buyer. This agreement has to specify what services the agent will provide, and how much they will get paid.

Real estate agents are no longer allowed to split commissions with one another. In the past, it was common for a listing agent to collect a 6% fee from the seller, and then split this fee with a buyer's agent who brought a buyer. Going forward, buyer's agents will have to negotiate their fee directly with the buyer they represent.

Learn more about how the real estate commission changes will impact buyers and sellers.

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. This is a key difference when compared to other real estate companies that provide a more personal, hands-on approach.

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.[3]

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.

A Reddit user noted that while Redfin’s system is efficient and cost-effective, the experience hinges on the quality of the agent you choose. “If you get a good agent, Redfin can be a great bargain,” they shared. “But if you get a bad agent, no system can fix that.”

Sellers who prefer frequent communication and more personalized attention may find working with a high-volume agent less satisfying.

Redfin agents close three times as many deals as the typical real estate agent

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 your brokerage.

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. 

As the Reddit user pointed out, this efficiency doesn’t replace the importance of a good agent who can walk you through complex aspects of the transaction, like understanding commissions or buyer-side fees.

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

Not all real estate agents are created equal, which is 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.

Redfin agents in Charleston, SC

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.

Redfin Premier agent based in Charleston, SC

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

Redfin partner agents: What to know

The Redfin Partner Agent program lets outside agents stay with their current brokerage while receiving referrals from Redfin. Agents only pay a referral fee after closing a deal, with no upfront costs. The program connects them with motivated buyers and sellers, offering exposure through Redfin’s marketing.

If you use Redfin's agent finder tool, you may come across Partner Agents. These agents from other brokerages pay Redfin for referrals, typically in markets where Redfin doesn’t have agents or when Redfin agents are unavailable.

Unlike Redfin’s in-house agents, Partner Agents don’t follow Redfin’s pricing model, and buyers aren't eligible for Redfin’s buyer rebate. As a result, these agents may not provide the same pricing benefits or consistency that you’d get from working directly with a Redfin agent or a conventional real estate agent.

Selling with Redfin: Pros and cons

Pros

  • Lower fees
  • Tech-driven process
  • Team support

Cons

  • Less personalized service
  • High minimum fees (in some markets)

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 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. Fill out this form to get matched with local agents today.

2. Compare Redfin with a discount real estate brokerage

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:

  • FSBO sales have reached a historical low of just 6% in 2024, with the vast majority of sellers opting to work with real estate agents.[4]
  • Studies have found that FSBO homes sell for close to $100,000 less than agent-assisted home sales.[5]
  • 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 cash home buyer can be a quick and convenient option for homeowners looking to offload properties quickly. Recent data shows that 30% of home purchases in September 2024 were all-cash sales, up from 26% in August and 29% in September 2023.[5]

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 may come with 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.

⚡ Want to sell quickly without the hassle? Clever Offers lets you compare cash offers from trusted buyers near you—without the trade-offs. Get your free, no-obligation offers today!

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.

FAQ

Are Redfin agents licensed?

Absolutely! Redfin agents are fully licensed agents, realtors, and brokers. Learn more about working with Redfin.

Why is Redfin bad?

Redfin isn't inherently bad, but it does have drawbacks. While Redfin agents are cheaper compared to a traditional agent, Redfin agents handle a lot more clients than traditional agents. So you may get less individualized support from Redfin than you would from a traditional agent.

Can you list FSBO on Redfin?

Redfin doesn't allow you to post for sale by owner (FSBO) homes directly on its platform. However, Redfin’s home search portal pulls listings directly from the local MLSs across the country. If you’re listing FSBO and pay a flat fee MLS company to post your listing on your local MLS, it should appear on Redfin.com. Read our complete guide to selling FSBO.

Does Redfin have all MLS listings?

Yes. Redfin is a fully licensed real estate brokerage with access to the MLS in each market it operates in. All MLS listings should appear on the Redfin website and app. However, Redfin won't have MLS listings for locations outside its service area. Find other home buying websites like Redfin.

How do I find a Redfin agent?

Visit Redfin.com, add your city or zip code into the search bar, and then search. Clicking on "Real Estate Agents" in the top-right corner will bring up a list of agents in your area. You can then view individual agents’ customer ratings and deal history.

Does Redfin have hidden fees?

Redfin listing fees are generally pretty transparent, though Redfin does have minimum commissions in some markets. These minimums can sometimes exceed its quoted 1.5% commission rate for homes under a certain price point. See how Redfin compares to other low commission companies.

Related articles

Article Sources

[1] National Association of Realtors – "NAR Member Profile 2024.".
[2] Redfin – "Redfin Commission Savings Disclaimers". Accessed November 20, 2024.
[4] National Association of Realtors – "NAR Realtor Confidence Index: September 2024".
[5] National Association of Realtors – "NAR Profile of Home Buyers and Sellers".

Authors & Editorial History

Our experts continually research, evaluate, and monitor real estate companies and industry trends. We update our articles when new information becomes available.

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