Does Redfin buy homes? | Is RedfinNow legit? | RedfinNow reviews | Locations | Does your home qualify for RedfinNow? | How it works | RedfinNow fees | RedfinNow vs. Opendoor

RedfinNow is an iBuyer, a company that buys homes for cash and resells them on the open market. If your home meets RedfinNow’s criteria, you can receive an offer within a few days without hiring an agent or showing your home.

RedfinNow offers a similar service to other iBuyers, but the company's 5–13% service fees are higher than Offerpad’s and Opendoor’s 5% fees. Redfin operates primarily as a discount brokerage, so it buys fewer homes than Offerpad or Opendoor, who are primarily iBuyers.

However, RedfinNow's service is available in 31 markets across the U.S. and the company offers flexible closing date options of 10–90 days. It even allows customers to rent the home back for a fee of $100 per day for 29–60 days after closing. There’s also no cancellation fee if you decide not to accept RedfinNow’s cash offer — Offerpad, by comparison, charges 1% to sellers who back out.

Redfin cash offer reviews from customers are limited, but among the positive ones we found, customers said RedfinNow delivers exactly what it promises. Other negative reviews focused on how the company sharply reduced its offer after inspecting the home.

If you’re considering RedfinNow, get a professional home valuation from a licensed real estate agent to help you decide if the company’s offer is worth it.

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.

RedfinNow 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, consider some important trade-offs.

RedfinNow seeks to purchase homes that meet its criteria, then it makes necessary repairs and sells the homes on the open market for a higher price. As a result, RedfinNow’s cash offers will likely be lower than what you might be able to attract 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.

Now that Zillow Offers has abandoned the iBuying business, RedfinNow is one of the three largest iBuyers, along with Opendoor and Offerpad. RedfinNow operates in 31 markets compared to Opendoor’s 45 and Offerpad’s 22.

But RedfinNow doesn’t purchase as many houses as Offerpad or Opendoor. It focuses mostly on its primary business as a low commission real estate broker with a team of in-house agents who charge discounted rates.

» LEARN: What it's like to work with Redfin agents? Check out our full review of Redfin!

Is RedfinNow available near you?

Though RedfinNow’s service area was once more limited than other iBuyers, it has continued to expand. It is now available in 31 markets throughout the U.S., including:

• Atlanta
• Boston
• Chicago
• Nashville, TN
• Phoenix
• Washington, D.C.

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 built after 1930. Other criteria include:

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 between $150,000–1.5 million.

RedfinNow is explicit about homes it won’t purchase, which include:

• Homes in age-restricted communities
• Manufactured or mobile homes
• Lots larger than 1 acre
• Bank-owned homes or homes with an outstanding mortgage greater than their 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 an inspection turns up significant issues, it’s unlikely you’ll meet RedfinNow’s criteria.

How RedfinNow works

1. 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.^[3] There’s no need to clean up, beyond making sure your home's details are clearly visible.
2. 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 discuss the service fee and answer any questions. Your initial cash offer is valid for five days ^[4] If you’d like to negotiate or you believe RedfinNow has overlooked something in its evaluation of the info you provided, be sure to request an on-site visit.
3. 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 mandatory inspection surfaces any issues.
4. 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).
5. Finalize the offer. If the inspection reveals any additional need for repairs, you’ll sign a Repair Addendum that may adjust your Redfin cash offer. These repairs target issues beyond normal wear and tear — for example, warped wood, termite damage, or badly damaged drywall or flooring.
6. Close the deal. You’ll choose a closing date (typically within 10–90 days, Mondays through Thursdays) and receive cash for your home. If your sale closes before you’re ready to move out, you can rent it back from RedfinNow for $100 per day for 29–60 days after closing.

If you decide you’re not ready to sell, RedfinNow can keep your information on file so you can “refresh” your offer later.^[5] The company can re-analyze your property value based on current market conditions — but the changes aren’t usually dramatic.

Redfin bases its prices on what it believes is an accurate offer based on the market. The company’s streamlined process doesn’t leave room for much negotiation, but Redfin says it may consider an updated offer if the market has changed since the initial offer or if they missed something important during the inspection.

Before accepting a RedfinNow cash offer, compare it to what your house would sell for on the open market. 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

RedfinNow fees include a service fee and closing costs that add up to 6–16% of your home's sale price. For a $400,000 home, selling to Redfin could cost up to $64,000. That's a huge bite out of your profits!

Here are how RedfinNow fees and costs break down:

Compared to its competitors, RedfinNow’s 5–13% service fee is fairly pricey.^[6] 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 5% of your home's sale price, plus closing costs.

How is the RedfinNow service fee calculated?

According to RedfinNow, the variable 5–13% 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:

• The costs of holding the home, including:
  • Financing
  • HOA dues
  • Taxes
  • Maintenance
  • Utilities
  • Insurance
• The risks of selling the home, including:
  • Prices of homes recently sold in the neighborhood
  • Local home-buying trends

How much will RedfinNow pay for my home?

RedfinNow has a list of criteria it uses to calculate your offer, which includes factors like:

• Your home's age
• Your home’s overall condition, including landscaping
• The quality of materials, finishes, and surfaces
• The quality of fixtures and appliances
• Recent upgrades or improvements
• Anticipated repair and renovation costs

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 could save up to $48,000 in selling costs for a $400,000 home!

RedfinNow reviews from customers

As of Dec. 2, 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, one seller reported that RedfinNow delivered exactly what it promised, the cost deducted for repairs was fair, and they were happy with the flexibility of the closing date and fees overall.

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

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💲 Listing Fee

$3,000 or 1%

💰 Buyer Savings

Up to 0.5% cash back

⭐ Avg. Customer Rating

4.9/5 (1,289 reviews)

✍️ Editor's Take

Pros

Cons

Reviews

Locations

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.

Try Clever for free — save thousands on commission

• 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 November 11, 2021, Clever has a 4.9 out of 5 rating on Trustpilot, based on 1,289 reviews.

Read reviews from real Clever customers here.

Clever has pre-negotiated low commission rates with top agents in all 50 states and Washington, DC.

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RedfinNow vs. Opendoor

Currently, the nation's largest and top-rated iBuyer is Opendoor.

Overall, Opendoor is the better iBuyer because:

• Opendoor’s fee is capped at 5%, instead of a variable fee like RedfinNow.
• Opendoor has more verified positive customer reviews.
• The company buys a lot more houses, meaning it’s more likely to buy your home.
• It offers a trade-in option that isn't available through RedfinNow.

Compared to other iBuyers, Opendoor's competitive service fees of just 5% and an average customer rating of 4.3/5 stars stand out. The company plans to expand to 100 markets across the nation.

RedfinNow doesn’t offer a trade-in program like Opendoor, but the company does offer flexible closing to help you remain in your home up to 90 days, compared to just 60 days with Opendoor.

Opendoor will also buy homes with lots up to two acres in some markets, while RedfinNow only makes offers on homes sitting on less than one acre of land.

Neither Opendoor or RedfinNow will pay listing agent commission, but Opendoor will pay the buyer’s agent a 1% bonus when the sale closes, as long as the agent representing the buyer has a license in good standing, and the seller has not requested or received an offer from Opendoor in the last 30 days.

One advantage of Redfin is its longer closing window — up to 90 days vs. just 60 with Opendoor.

»MORE: Read our full review of Opendoor.

RedfinNow vs. Zillow Offers

Until it stopped buying homes in late 2021, Zillow Offers was one of the most popular iBuyer services, second only to Opendoor in terms of transaction volume.

Compared to RedfinNow, Zillow Offers was available in a similar number of locations, but it offered slightly more flexibility on closing dates and had a lower cap on its service fee.

However, it's important to note that Zillow's fees could have added up to significantly more than Redfin — up to 22%, including 6% for selling costs, 1–3% for closing costs, and potential realtor commissions.

Should you sell your home to RedfinNow?

RedfinNow's higher service fees and lack of verified customer reviews make it a more expensive and less certain option than other iBuyers.

Hot real estate markets like the ones RedfinNow operates in 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'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!

Contact RedfinNow

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