Does Redfin buy homes? | Is RedfinNow legit? | RedfinNow reviews | Locations | Does your home qualify for RedfinNow? | How it works | RedfinNow fees | RedfinNow vs. Zillow Offers
✍️ 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, a Redfin cash offer can help — but know that you could likely earn thousands more with a traditional sale. |
RedfinNow is a service that buys houses for cash, then resells them on the open market. If your home meets RedfinNow’s specifications, you may be eligible to receive an offer within a few days — with no need to repair, list, or market your home.
Similar to a real estate investor, Redfin cash offers are geared toward homes the company 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 those who value convenience more than getting top dollar.
However, Redfin is primarily a discount brokerage, which means iBuying isn’t the company’s main specialty. Based on RefinNow reviews from customers, Redfin cash offers are typically lower than what you might earn on the open market, with little room to negotiate over the sale price or repairs.
If you're considering RedfinNow, you should also get a professional home valuation from a licensed real estate agent. After all, Redfin is motivated to buy homes as cheaply as possible to maximize its profits.
Need a great realtor? Clever can help! Clever is a free service that matches you with handpicked agents in your area from top brokerages like Keller Williams and Coldwell Banker. Clever also negotiates huge savings on your behalf. You'll get full service for just $3,000 or 1%, saving you thousands when you sell your home!
» MORE: Find top local agents, save thousands on realtor fees!
Keep reading to find RedfinNow reviews, details on fees, and whether your home is eligible for a Redfin cash offer.
RedfinNow, at a glance | |
|---|---|
💰 RedfinNow Fees | 6-12% |
📍Locations | 14 cities across AZ, CA, CO, TX, and WA |
⏱️ Closing timeline | Negotiable — typically 10-60 days |
☎️ Contact | Phone: (951) 229-0511 | Email: RedfinNow@redfin.com |
Does Redfin buy homes?
Yes — Redfin’s iBuyer service, RedfinNow, makes near-instant cash offers on homes. The program makes three promises: certainty, convenience, and control.[1] To deliver on these promises, Redfin purchases 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's goal is to buy low, make repairs, and sell your house 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.
If you accept a Redfin cash offer, you won’t have a real estate agent to negotiate for you or protect your interests. 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.
A cash offer can be a great option if you need to sell ASAP — but you'll almost always walk away with less money. In some markets where homes are selling quickly, holding out for just a few more weeks could net you thousands more.
Is RedfinNow legit?
Yes, RedfinNow is a legitimate iBuying service that makes cash offers on homes, buying them directly from sellers. That said — flipping homes is not Redfin’s main focus. After all, Redfin is primarily a low commission real estate broker with a team of in-house agents who charge discounted rates.
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.[3]
» LEARN: What are the pros and cons of selling with Redfin?
Is RedfinNow available near you?
RedfinNow is currently purchasing homes in 26 metros across ten states, with most locations clustered in California. It's also the only iBuyer currently purchasing homes in Washington, D.C.
State | RedfinNow locations |
|---|---|
Arizona | Phoenix |
California | Inland Empire, Los Angeles, Orange County, Palm Springs, Sacramento, San Diego, San Francisco |
Colorado | Denver |
District of Columbia | Washington, D.C. |
Maryland | Anne Arundel County, Baltimore City, Baltimore County, Montgomery County, Prince George's County |
Massachusetts | Boston |
Nevada | Las Vegas |
Oregon | Portland |
Texas | Austin, Dallas, Houston, San Antonio |
Virginia | Alexandria, Arlington County, Fairfax County |
Washington | Seattle |
Though RedfinNow's service areas are limited, other iBuyers cover much wider areas. For example, Opendoor is currently available in 40+ cities across 17 states, with plans to expand further.
» COMPARE: Request a no-obligation cash offer from Opendoor!
Does your home qualify for RedfinNow?
Even if you live in RedfinNow's service area, your home must meet strict criteria to qualify for a cash offer.
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
RedfinNow also considers your home's value, with eligibility varying by market. For example, Seattle and Los Angeles have higher maximum property values than San Antonio, where eligibility is capped at $400,000. Across all markets, RedfinNow purchases homes valued at between $150,000 and $1.5 million.
RedfinNow offers more straightforward clarity about homes it won’t purchase, which 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
- Homes with unpermitted additions
- Homes with aluminum electric wiring, polybutylene plumbing, or masonite woodruff roofs
- Homes with material structural issues, such as extensive termite damage
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.
How RedfinNow works
- Apply online. Start by providing information about your property through RedfinNow’s online questionnaire. Including photos can help you receive a more accurate initial offer, so focus on highlighting your home’s finishes (such as countertops) and any unique features.[4] 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 Redfin 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.[5] If you’d like to negotiate or feel RedfinNow has overlooked something, be sure to request an on-site visit.
- Accept your offer. To move forward, you’ll sign a contract (called a Letter of Intent, or LOI). Keep in mind that Redfin may adjust your offer if the inspection surfaces any issues.
- 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 your Redfin cash offer. 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.[6] The company will re-analyze your property value based on current market conditions — but the changes aren’t usually dramatic.
Before accepting a RedfinNow cash offer, compare it to what your house would sell for on the open market. Remember, Redfin plans to resell your house for more than they paid for it — so they're not motivated to offer what it's really worth.
To learn your home's true value, ask an experienced local realtor for a professional home valuation report, which most agents will provide for free. Weigh your agent's analysis of your home's fair market value against RedfinNow's cash offer price, so you can decide whether selling to Redfin is a good option or one that will leave thousands on the table.
» MORE: How to find the perfect real estate agent
RedfinNow fees
In total, RedfinNow fees include a service fee and closing costs that add up to 7-15% of your home's sale price. For a $400,000 home, selling to Redfin would cost up to $60,000. That's a huge bite out of your profits!
Compared to its competitors, RedfinNow’s 6-12% service fee is fairly pricey.[7] You’ll also have to pay standard closing costs which typically amount to 1-3% of your home’s sale price. By contrast, Opendoor's service fee is just 3.5-5% of your home's sale price, plus closing costs.
According to RedfinNow, the service fee covers repairs, plus a premium for the convenience and certainty of a cash offer. The exact rate you'll pay is based on:
- 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
It's also worth noting that RedfinNow doesn't penalize sellers who have to back out, unlike some iBuyers (such as Offerpad) that charge a cancellation fee.
Still, expensive service fees can diminish the profit you'll earn from your sale. If you want to earn top dollar, Clever can help. Clever's partner agents provide full service while charging just $3,000 or 1% in listing fees, helping you save while still getting incredible service. Compared to RedfinNow, you'd save up to $32,000 in selling costs for a $400,000 home!
RedfinNow reviews from customers
As of August 15, 2021, there aren't many RedfinNow reviews on reputable third-party review sites. This makes it difficult to know how customers who have accepted a Redfin cash offer feel about their experience.
Among the Redfin cash offer reviews we found, some sellers report that RedfinNow delivered exactly what it promised:
However, RedfinNow complaints focus on lowball offer prices and hefty fees. For example, one seller was disappointed when Redfin reduced its cash offer by $100,000:
Another seller accepted an initial Redfin cash offer — only to feel frustrated when RedfinNow reduced their offer by $50,000 after the inspection.
» Looking for more information about Redfin? You can find all the details in our in-depth Redfin review.
How does RedfinNow compare to alternatives?
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.
We found that while Redfin does offer savings, it doesn’t always deliver on customer service — particularly its in-house agents’ experience and responsiveness.
This isn't true of all low commission real estate companies, though. Ideally, these companies should deliver major savings without cutting corners on service.
For example, Clever can introduce you to top real estate agents from major brokerages like RE/MAX, Coldwell Banker, and Keller Williams. You'll get full-service AND pay just $3,000 or 1% in listing fees, thanks to our pre-negotiated low rates.
Clever Real Estate
Learn More💲 Listing Fee
$3,000 or 1%
💰 Buyer Savings
Up to 0.5% cash back
⭐ Avg. Customer Rating
4.89/5 (1,208 reviews)
Clever is a quick, easy, and free way to find a top-rated local agent. And, unlike many similar companies, Clever pre-negotiates big discounts on your behalf, so you can save thousands without sacrificing on service.
- Free, nationwide agent-matching service that partners with full-service local agents from conventional brokerages like Keller Williams, Century 21, and RE/MAX
- Provides multiple agent matches so you can interview, compare marketing plans, and choose the best fit
- Pre-negotiates low rates on your behalf — you get full service for a flat $3,000 listing fee, or just 1% if the home sells for more than $350,000
- If you buy with Clever, you could get a check worth up to 0.5% of the home price
- You may not get matched with an agent from your preferred real estate brokerage.
- Agents may not provide premium services like drone photography and professional home staging.
As of October 7, 2021, Clever has a 4.9 out of 5 rating on Trustpilot, based on 1,203 reviews.
Clever has pre-negotiated low commission rates with top agents in all 50 states, Puerto Rico, and Washington, DC.
RedfinNow vs. Zillow Offers
RedfinNow | Zillow Offers | |
|---|---|---|
💰Total fees | 9-15% | 9.5-22% |
🤝Service fee | 6-12% | 1.5-9% |
📍Locations | 26 metros across ten states and Washington, D.C. | 25 metro areas across 12 states |
⏱️Time to close | 10-60 days | 7-90 days |
Zillow Offers is one of the most popular iBuyer services, second only to Opendoor in terms of transaction volume.
Compared to RedfinNow, Zillow Offers is available in a similar number of locations, but it offers slightly more flexibility on closing dates and has a lower cap on its service fee.
However, it's important to note that Zillow's fees can add up to significantly more than Redfin — up to 22%, including 6% for selling costs, 1-3% for closing costs, and potential realtor commissions.
» MORE: Zillow Offers Reviews and Fees: Should You Sell to Zillow?
RedfinNow vs. other iBuyers
Currently, the nation's largest and top-rated iBuyer is Opendoor.
Compared to other iBuyers, Opendoor's competitive service fees of just 3.5-5% and an average customer rating of 4/5 stars stand out. The company plans to expand to 100 markets across the nation.
Interested in learning more? Request a cash offer from Opendoor!
Opendoor
Full ReviewService Fee
3.5-5%
Closing Date Window
14-60 days
Average Rating
4.05/5 (1,159 reviews)
Opendoor is a good option for home sellers who need a fast, predictable sale with minimal hassle. While the price that Opendoor pays might be slightly below the value of comparable homes on the open market, the difference might be worth it for people who value convenience and speed.
Pros
- Low service fee compared to competitors
- Additional in-house services, including Opendoor Home Loans & OD Title
- Highly rated in customers' online reviews
Cons
- Pays fair market value at most
- Limited ability to negotiate
- Buyers may find Opendoor's repairs insufficient
Opendoor is currently purchasing homes in 23 locations.
- AZ: Phoenix, Tucson
- CA: Los Angeles, Riverside, Sacramento, San Diego
- CO: Denver
- FL: Jacksonville, Orlando, Tampa
- GA: Atlanta
- MN: Minneapolis-St. Paul
- NC: Asheville, Charlotte, Raleigh-Durham
- NV: Las Vegas
- OR: Portland
- TN: Nashville
- TX: Austin, Dallas-Fort Worth, Houston, San Antonio
- UT: Salt Lake City
As of February 15, 2021, Opendoor's weighted average is 4.05/5 based on 1,159 reviews.
- Reviews.io: 4.08 (864 reviews)
- Better Business Bureau: 4.06 (295 reviews) | A+ rating (75 complaints)
- Website: www.opendoor.com
- Phone: 1-888-352-7075
- Email: contact@opendoor.com
Offerpad
Full ReviewService Fee
6-10%
Closing Date Window
10-90 days
Average Rating
1.8/5 (57 reviews)
Offerpad promises the certainty of a cash offer and a fast closing on a date you choose. But its restrictive purchase agreement, hidden cancellation fee, and negative online reviews suggest it's riskier than other iBuyers.
Pros
- Generous closing window compared to competitors
- Late checkout option gives sellers up to 3 days to move out after closing
- Access additional services, such as free local moves within 50 miles
Cons
- You'll have to sign a binding contract before knowing the final offer price
- You might face a 1% cancellation fee
- Offerpad reserves the right to back out at any time
Offerpad is currently purchasing homes in 14 locations.
- AZ: Phoenix, Tucson
- AL: Birmingham
- FL: Jacksonville, Orlando, Tampa
- GA: Atlanta
- NV: Las Vegas
- NC: Charlotte (+ neighboring parts of SC), Raleigh
- TX: Austin, Dallas-Fort Worth, Houston, San Antonio
As of February 15, 2021, Offerpad's average customer rating is 1.8/5 based on 57 reviews.
- Sitejabber: 1.81 stars (32 reviews)
- Review.io: 2.17 rating (6 reviews)
- Yelp: 1.5 stars (22 reviews)
- Better Business Bureau: A+ rating (57 complaints)
- Website: www.offerpad.com
- Phone: 844-388-4539
- Email (Sellers): info@offerpad.com
- Email (Buyers): buyers@offerpad.com
Orchard
Full ReviewService Fee
6%
Closing Date Window
14-60 days
Average Rating
4.6/5 (97 reviews)
Orchard is a home trade-in service that allows you to purchase a new home by getting access to your current home's equity. You can then list your old home on the market with an Orchard listing agent.
If you need to move quickly, but still want to get top dollar for your home, Orchard is worth considering. However, Orchard only accepts newer homes compared to its competitors.
Pros
- You'll have a generous 7-day window to consider Orchard's offer
- Use Orchard's Offer Boost program to make a cash offer on a new home
- If your home doesn't sell in 120 days, you can accept Orchard's guaranteed cash offer
Cons
- Homes must be relatively new, compared to competitors (built after 1972 vs. 1930-1960)
- Orchard's cash offers will likely be much lower than what you'd be able to sell for on the open market
Orchard is currently operating in nine locations.
- CO: Colorado Springs, Denver
- GA: Atlanta
- NC: Charlotte, Raleigh-Durham
- TX: Austin, Dallas-Fort Worth, Houston, San Antonio
As of February 15, 2021, Orchard's average customer rating is 4.6/5 based on 97 reviews.
- Trustpilot: 4.6/5 (132 reviews)
- Better Business Bureau: A (4 complaints)
- Website: https://orchard.com/
- Phone: 844-819-1373
- Email: support@orchard.com
Knock
Full ReviewService Fee
1.25%
Closing Date Window
Varies
Average Rating
4.8/5 (710 reviews)
Knock allows customers to purchase a new home before selling their old one. Unlike typical iBuyers, you'll sell on the open market with a traditional real estate agent. Knock will cover your old mortgage until your home sells — but you'll still eventually have to settle up, and costs can add up fast if your home sits on the market.
Pros
- You'll sell on the open market, potentially receiving offers above fair market value
- $25,000 advance for home repairs before selling
- Compared to competitors, Knock accepts older homes (built after 1930)
Cons
- Fees can add up quickly if your home sits on the market
- You'll have multiple points of contact rather than one dedicated agent
- Buyers will need to be proactive and independent in their home search
Knock is currently operating in 15 locations.
- AZ: Phoenix
- CO: Denver
- FL: Fort Lauderdale, Jacksonville, Miami, Orlando, Tampa, West Palm Beach
- GA: Atlanta
- NC: Charlotte, Raleigh-Durham
- TX: Austin, Dallas-Fort Worth, Houston, San Antonio
As of February 15, 2021, Knock's average customer rating is 4.8/5 based on 710 reviews.
- Zillow: 4.8/5 (710 reviews)
- Website: https://www.knock.com/
- Phone: 866-996-1695
Should you sell your home to RedfinNow?
✅ Consider RedfinNow if...
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❌ Avoid RedfinNow if…
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iBuyers can be a good solution for sellers who need a fast cash offer on a flexible timeline.
However, RedfinNow's lack of verified customers and low transaction volume make it a small player in a competitive iBuying market.
Plus, hot real estate markets tend to have buyers who want to move fast AND who may be willing to pay the full value of your home — or possibly more, if you receive multiple offers.
If you're still deciding whether a Redfin cash offer is right for your home sale, Clever's licensed concierge team can help. Best of all, Clever's service is free with no obligation — so you can compare your options after speaking with
top-rated real estate agents in your area. If you ultimately decide to list with Clever, you'll save an average of $9,600 on listing fees!
RedfinNow. "Why should I sell to RedfinNow?." Accessed March 12, 2021. Updated March 4, 2021.
RedfinNow. "Is RedfinNow a brokerage?." Accessed March 12, 2021. Updated February 25, 2021.
Mike DelPrete. "Opendoor, Zillow, and the iBuyer Business Model." Accessed March 12, 2021.
RedfinNow. "How to take home photos for your cash offer." Accessed March 12, 2021. Updated October 2020.
RedfinNow. "How long is my RedfinNow offer valid for?." Accessed March 12, 2021. Updated December 2020.
RedfinNow. "How fast can you close?." Accessed March 12, 2021. Updated February 22, 2021.
RedfinNow. "How much is the RedfinNow fee?." Accessed March 12, 2021. Updated March 4, 2021.
Recommended reading
FAQs
What is RedfinNow?
Redfin directly buys homes from sellers through RedfinNow. Though RedfinNow can close quickly, it's likely that you'll receive less than what you could on the open market. If you want to sell fast without sacrificing your full proceeds, we recommend choosing a low commission real estate company.
Is RedfinNow legit?
Yes, RedfinNow is a legitimate service that makes cash offers on homes, buying them directly from sellers. However, Redfin is primarily a discount real estate brokerage. As a result, RedfinNow is much smaller and less influential than some of its competitors — particularly Opendoor and Zillow Offers. Learn more.