RedfinNow: A Comprehensive Review for 2021 & Beyond

Michelle Delgado

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Michelle Delgado

June 28th, 2021
Updated June 28th, 2021

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What is RedfinNow? | Best for | Criteria | Locations | Is it legit? | Reviews | How it works | Fees | Vs. iBuyers | Vs. real estate agent | Contact

RedfinNow: A Comprehensive Review for 2021 & Beyond

✍️ Editor’s take: RedfinNow aims to buy low and sell high — so it’s best for sellers who prioritize speed and convenience over earning top dollar. If you want to sell your home as-is without listing it on the open market, it’s worth seeing what RedfinNow can offer.

RedfinNow is Redfin’s iBuyer program. If your home meets RedfinNow’s specifications, you may be eligible to receive an all-cash offer — with no need to repair, list, or market your home.

Similar to a real estate investor, RedfinNow aims to buy homes it can repair and sell for a profit.

The program is best suited for sellers who want to sell as quickly and with as little hassle as possible — and who value convenience more than getting top dollar.

It’s currently available in 14 U.S. cities, primarily concentrated in California.

Redfin is primarily a discount brokerage, so iBuying isn’t the company’s main specialty. But unlike its competitors, RedfinNow purchases homes as-is, which may simplify its process and fees.

RedfinNow, at a glance
Fees
6-12%
Timeline
Negotiable — typically 10-60 days
Customer rating
Not available
Locations
14 cities across AZ, CA, CO, TX, and WA

» COMPARE: Opendoor | Zillow Offers | Offerpad | Knock | Orchard

What is RedfinNow?

Redfin’s iBuyer service, providing instant cash offers on homes. The program makes three promises: certainty, convenience, and control.[1] To deliver on these promises, Redfin will purchase qualified homes as-is — with no need to repair, market, or list your property.

The program is best suited for sellers who can’t afford to repair and list their homes — or those who simply don’t want to deal with the hassle.

In exchange for this convenience, there are some important trade-offs to consider.

RedfinNow operates similarly to a real estate investor or cash buyer. Its goal is to buy low, make repairs, and sell for a profit. As a result, RedfinNow’s cash offers will likely be lower than what you might be able to earn on the open market.

Sellers who work with RedfinNow typically don’t have a real estate agent. In fact, the company’s website explicitly says, “RedfinNow agents and employees represent RedfinNow in their home purchases, and don't represent home sellers.”[2] You’ll also have to be comfortable negotiating and advocating for yourself.

For some sellers, though, a lower cash offer could still be compelling if it sped up the transaction, avoiding months of mortgage payments while the home is listed on the open market.

Who should use RedfinNow?

RedfinNow is worth considering if...
  • You’re interested in receiving a cash offer, but want a predictable experience with a well-known real estate company
  • You want to sell your home as-is, with no additional repairs
  • Your top priorities are speed and convenience
You may want to avoid RedfinNow if…
  • You want to get the most competitive offer possible on your home
  • You aren’t comfortable advocating for yourself throughout the transaction
  • You want a high-touch, personalized customer service experience

Does your home qualify for RedfinNow?

If you live in an eligible service area, your home will have to meet RedfinNow’s buying criteria.

These requirements vary depending on where you live,[3] so the best way to find out if you qualify is to submit an obligation-free application at redfin.com/now. Essentially, the company aims to purchase homes it can resell quickly to avoid racking up carrying costs.

In general, RedfinNow looks for single family homes, townhomes, and condos that were built after 1930. Other criteria include:

  • A lot size under half an acre
  • A clear title
  • Good physical condition
  • Owner-occupied or vacant

Home value also plays an important role in RedfinNow’s evaluation. Overall, RedfinNow purchases homes that are valued at more than $150,000 and under $1.5 million — but each service area has a specific range of qualifying home values.

For example, notoriously pricey cities such as Seattle and Los Angeles have higher maximum property values than San Antonio, where eligibility is capped at $400,000.

RedfinNow offers more straightforward clarity about homes it won’t purchase. Ineligible properties include:

  • Homes in age-restricted communities
  • Manufactured or mobile homes
  • Lots larger than one acre
  • Bank owned homes or homes with an outstanding mortgage greater than the current market value

RedfinNow typically buys homes that need some level of repair — but there are limits. If your home would struggle to pass a standard inspection, it’s unlikely that you’ll meet RedfinNow’s criteria.

Disqualifying factors include:

  • Unpermitted additions
  • Aluminum electric wiring, polybutylene plumbing, or masonite woodruff roofs
  • Material structural issues, such as extensive termite damage

Overall, homes must be “safe and habitable” to qualify for RedfinNow.

Is RedfinNow available in your location?

RedfinNow is currently purchasing homes in 14 locations:

  • AZ: Phoenix
  • CA: Inland Empire, Los Angeles, Orange County, Palm Springs, Sacramento, San Diego, San Francisco
  • CO: Denver
  • TX: Austin, Dallas, Houston, San Antonio
  • WA: Seattle

Not eligible for RedfinNow?

If you live outside RedfinNow's current service areas, you can still work with a top-rated real estate agent.

Our network of agents work for pre-negotiated low rates: just $3,000 for any home under $350,000, or 1% for more expensive homes.

Submit the form below for a free, no-strings-attached phone consultation with one of our Licensed Concierges.

Is RedfinNow Legit?

Yes, RedfinNow is a legitimate iBuying service that makes cash offers on homes, buying them directly from sellers.

That said — iBuying is not Redfin’s main focus. After all, Redfin is primarily a discount real estate brokerage that has earned a reputation for helping home sellers save money.

As a result, RedfinNow is much smaller and less influential than some of its competitors — particularly Opendoor and Zillow Offers, which accounted for approximately 86% of total iBuying transactions in 2019.[4]

» LEARN: What are the pros and cons of selling with Redfin?

RedfinNow reviews

As of March 15, 2021, RedfinNow does not have any verified customer reviews on reputable third-party review sites.

However, Redfin does have customer reviews for its services as a discount broker. If you’re interested in learning more about Redfin’s other services, you can find all the details in our in-depth Redfin review.

How RedfinNow works

  • Apply online. Provide information about your property through RedfinNow’s online questionnaire. You’ll also have an opportunity to submit photos of your home, which are crucial for receiving an accurate offer. RedfinNow recommends focusing on your home’s finishes (such as countertops) and any unique features.[5] There’s no need to clean up, beyond making sure these details are clearly visible.
  • Review RedfinNow’s cash offer. If your home is eligible, you’ll receive a cash offer within a few days. A RedfinNow representative will also call to answer your questions and discuss the service fee. Your initial cash offer is valid for 5 days.[6] If you’d like to negotiate the cash offer or feel RedfinNow has overlooked anything, be sure to request an on-site visit from a RedfinNow representative.
  • Accept your offer. If you’re happy with RedfinNow’s preliminary offer, you’ll sign a contract (called a Letter of Intent) and move forward to the next steps. Keep in mind that the company may adjust your offer later if the inspection surfaces any issues with your home.
  • Schedule a home inspection. RedfinNow requires a third-party home inspection, typically within 7-10 days of signing your contract. Depending on your property, RedfinNow may also require additional inspections (such as the roof).
  • Finalize the offer. If the inspection reveals any additional repairs, you’ll sign a Repair Addendum that may adjust RedfinNow’s cash offer.[6] These repairs go beyond normal wear and tear — for example, warped wood, termite damage, or badly damaged drywall or flooring.
  • Close the deal. You’ll choose a closing date (typically within 10-60 days, Mondays through Thursdays) and receive cash for your home.

If you decide you’re not ready to sell, RedfinNow can keep your information on file so you can “refresh” your offer later.[7] The company will re-analyze your property value based on current market conditions — but the changes aren’t usually dramatic.

Redfin also has a team of in-house agents, so you can also request to compare your cash offer to what you’d get working with an agent.[8] If you’d rather work with a traditional real estate agent, most are happy to provide a competitive analysis at no charge.

Get a free comparative market analysis from an agent!

If you’re interested in selling, a real estate agent can provide you with a comparative market analysis (CMA) to help you determine what your home is worth. A free, no-obligation CMA is a great way to compare your RedfinNow offer with what your house might be worth on the open market.

Connect with an agent and get a free CMA today!

Fees

Compared to its competitors, RedfinNow’s service fee is relatively pricey. You’ll pay 6-12% of your home’s sale price[9] — compared to the 3.5-8% that’s typical of other iBuyers.

According to RedfinNow’s website and representatives, the service fee covers anticipated repair costs, plus a premium for “the convenience, certainty, and control that comes with your cash offer.”

In addition to the service fee, you’ll also have to pay standard closing costs which typically amount to 1-3% of your home’s sale price.

While some iBuyers, such as Offerpad, charge a cancellation fee, RedfinNow does not penalize sellers who have to call the deal off.

For example, many sellers use RedfinNow to time their home sale with the purchase of a new home — but there’s always a risk that their new home purchase could fall through.

As long as you haven’t closed with RedfinNow, there’s still time to back out with zero penalty. Your RedfinNow representative can work with you to refresh your offer once you’ve found a new property to purchase.

⚠️ How does RedfinNow calculate its service fee?
RedfinNow wants to purchase homes at a low price and sell them for a profit. As a result, the company is motivated to protect its interests by budgeting for repairs that may not be visible during the home inspection.

Along with a proprietary algorithm that calculates comparable property values and demand in your area, RedfinNow will consider:
  • When your home was built
  • Your home’s overall condition, including landscaping
  • Materials, finishes, and surfaces
  • Fixtures and appliances
  • Recent upgrades or improvements
  • Anticipated repair, renovation, or fix up needs
In general, homes that only need minor repairs might receive a lower service fee while homes in rougher shape might result in a higher service fee.

How does RedfinNow compare to alternatives?

RedfinNow vs. other iBuyers


Opendoor
Zillow Offers
Offerpad
RedfinNow
Orchard
Average Rating
4.05
Unavailable
1.77
Unavailable
4.6
Service fee
3.5-5%
1.5-7.9%
6-10%
6-12%
6%
Trade-in incentive

None

None

Markets served
21
25
14
14
9
Repair costs
Deducted from offer
Deducted from offer
Deducted from offer
Deducted from offer
Deducted from offer
Partner agents
In-house agents + partner agents

In-house agents
In-house agents
In-house agents
Flexible closing date





Cancellation penalty
None
None
1% if outside the 4-day post inspection report window
None if the repair addendum is not signed
None
Listing options





Late checkout option

None

None
None

RedfinNow vs. real estate agent

If you reject RedfinNow’s cash offer, the company will try to steer you toward working with one of its agents — but we recommend also exploring non-Redfin agents to make sure you get the best possible match for your goals.

We found that while Redfin does offer savings, it doesn’t always deliver on customer service — particularly its in-house agents’ experience and responsiveness. (You can read our full review for more details on working with Redfin.)

If you’re not sure where to start, Clever makes it simple to connect with top agents in your area. We can provide introductions to our nationwide network of trusted partner agents who work for 1% commission or $3,000, depending on your home’s value.

Sell or Buy a Home with Clever and Save Thousands!

Enter your zip code to see if Clever has a partner agent in your area!

Contact

Website
Phone
(951) 229-0511
Email
RedfinNow@redfin.com

ARTICLE SOURCES
[1]

RedfinNow. "Why should I sell to RedfinNow?." Accessed March 12, 2021. Updated March 4, 2021.

[2]

RedfinNow. "Is RedfinNow a brokerage?." Accessed March 12, 2021. Updated February 25, 2021.

[3]

RedfinNow. "Is my home eligible for RedfinNow?." Accessed March 12, 2021. Updated March 7, 2021.

[4]

Mike DelPrete. "Opendoor, Zillow, and the iBuyer Business Model." Accessed March 12, 2021.

[5]

RedfinNow. "How to take home photos for your cash offer." Accessed March 12, 2021. Updated October 2020.

[6]

RedfinNow. "How long is my RedfinNow offer valid for?." Accessed March 12, 2021. Updated December 2020.

[7]

RedfinNow. "How fast can you close?." Accessed March 12, 2021. Updated February 22, 2021.

[8]

RedfinNow. "Won’t I get more money if I list my home on the market?." Accessed March 12, 2021. Updated January 2021.

[9]

RedfinNow. "How much is the RedfinNow fee?." Accessed March 12, 2021. Updated March 4, 2021.

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