RedfinNow: Is Redfin Still Making Cash Offers?

What is RedfinNow?

RedfinNow was Redfin's equivalent of an iBuyer, a company that buys homes for cash and resells them on the open market. If your home met RedfinNow’s purchase criteria, you could receive an offer within a few days without hiring an agent to list your home.

Why did RedfinNow shut down?

RedfinNow essentially shut down due to an unsustainable business model, which represented too much risk and resulted in losses of several million dollars for the company.

In a statement announcing RedfinNow's closure, Redfin CEO Glenn Kelman explained: "We have to simplify our business. We're closing our iBuying business, RedfinNow, because maintaining a profit with rising interest rates would make our offers on homes insultingly low."[2]

What are the best alternatives to RedfinNow?

» MORE: The top companies that buy houses for cash

RedfinNow at a glance

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

RedfinNow's service was once available in a several markets across the U.S. and the company offered flexible closing date options of 10–90 days. It also allowed customers to rent the home back for a fee of $100 per day for 29–60 days after closing — something iBuyers like Offerpad and Opendoor still offer today.

Does Redfin still buy homes?

Not anymore. Redfin’s iBuyer service, RedfinNow, used to make near-instant cash offers on homes, but it shuttered its doors in 2022. The program made three promises: certainty, convenience, and control.[3] To deliver on these promises, Redfin purchased qualified homes as-is — with no need to repair, market, or list your property.

RedfinNow was best suited for sellers who can’t afford to repair and list their homes — or those who simply didn’t want to deal with the hassle.

In exchange for this convenience, sellers made some important trade-offs.

RedfinNow sought to purchase homes that met its criteria, then it made necessary repairs and (theoretically) resold the homes for a higher price. As a result, RedfinNow’s final offer was lower than what you might be able to attract on the open market.

If you accepted Redfin’s offer, you wouldn’t have a realtor to negotiate for you or protect your interests. The company’s website explicitly said that, "RedfinNow agents and employees represent RedfinNow in their home purchases, and don't represent home sellers."[4] You also had to be comfortable negotiating and advocating for yourself.

A cash offer from a company that buys houses for cash 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?

RedfinNow was a legitimate iBuying service that made cash offers on homes, buying them directly from sellers.

Its main competitors were Zillow Offers (which also abandoned the iBuying business), along with Opendoor and Offerpad. RedfinNow operated in 31 markets compared to Opendoor’s 48 and Offerpad’s 25.

But RedfinNow never purchased as many houses as Offerpad or Opendoor. It focused 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 still available anwhere?

Though RedfinNow has been shuttered since 2022, it used to be available in 31 markets throughout the U.S., including:

• Atlanta
• Boston
• Chicago
• Nashville, TN
• Phoenix
• Washington, DC

What was RedfinNow's purchase criteria?

Even if you lived in RedfinNow's service area, your home had to meet strict criteria to qualify for a cash offer.

In general, RedfinNow looked for single-family homes, townhomes, and condos built after 1930. Other criteria include:

RedfinNow also considered your home's value, with eligibility varying by market. For example, Seattle and Los Angeles had higher maximum property values than San Antonio, where eligibility was capped at $400,000. Across all markets, RedfinNow purchases homes valued between $150,000–1.5 million.

RedfinNow's purchase criteria included:

• 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 electrical wiring, polybutylene plumbing, or Masonite Woodruff roofs
• Homes with material structural issues, such as extensive termite damage

Like other iBuyers, RedfinNow typically bought houses that needed some level of repair — but there were limits. If an inspection turned up significant issues, it was unlikely you would have met RedfinNow’s criteria.

How RedfinNow used to work

1. Apply online. You started by providing information about your property through RedfinNow’s online questionnaire. Including photos helped you receive a more accurate initial offer.[5] There was no need to clean up, beyond making sure your home's details were clearly visible.
2. Review RedfinNow’s cash offer. If your home was eligible, you’d receive a Redfin cash offer within a few days. A RedfinNow representative also called to discuss the service fee and answer any questions. Your initial cash offer was valid for five days. [6] If you wanted to negotiate or you believed RedfinNow had overlooked something in its evaluation of the info you provided, you could request an on-site visit.
3. Accept your offer. To move forward, you signed a contract (called a Letter of Intent, or LOI). Redfin sometimes adjusted your offer if the mandatory inspection surfaced any issues.
4. Schedule a home inspection. RedfinNow required a third-party home inspection, typically within 7–10 days of signing a contract. Depending on the property, RedfinNow also sometimes required additional inspections (such as the roof).
5. Finalize the offer. If the inspection revealed any additional need for repairs, you signed 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 chose a closing date (typically within 10–90 days, Mondays through Thursdays) and received cash for your home. If your sale closed before you were ready to move out, you could rent it back from RedfinNow for $100 per day for 29–60 days after closing.

If you decided you weren't ready to sell, RedfinNow kept your information on file so you could "refresh" your offer later.[7] The company re-analyzed your property value based on current market conditions — but the changes weren’t usually dramatic.

How much did RedfinNow pay?

Redfin based its prices on what it believed was an accurate offer based on the market. The company’s streamlined process didn’t leave room for much negotiation, but Redfin said it would consider an updated offer if the market had changed since the initial offer or if they had missed something important during the inspection.

Before accepting a cash offer from any cash home buying company, we recommend comparing 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 included a service fee and closing costs that added up to 6–16% of your home's sale price. (For comparison, the nation's leading iBuyer, Opendoor charges a 5% service fee). For a $400,000 home, selling to Redfin would have cost up to $64,000. That's a huge bite out of your profits! While the selling process and quick closing might have been more convenient, you wouldn't necessarily save money with RedfinNow's high fees.

Here are how RedfinNow's fees and costs broke down:

Compared to its competitors, RedfinNow’s 5–13% service fee was fairly pricey.[8] 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 fees.

How was RedfinNow's service fee calculated?

According to RedfinNow, the variable 5–13% service fee covers repair costs, 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
  • Property taxes
  • Maintenance
  • Utilities
  • Insurance
• The risks of selling the home, including:
  • Prices of homes recently sold in the neighborhood
  • Local home-buying trends

How did RedfinNow price homes?

RedfinNow had 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

RedfinNow reviews from customers

RedfinNow had limited reviews, given its short lifespan. Most of the services reviews on Trustpilot were actually for Redfin's realtor services. However, RedfinNow was a frequent topic of discussion on Reddit, where sentiment was generally positive, given Redfin's penchant for buying at or above market value during a time when interest rates were low and home values were rising quickly.

For example, 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.

Reviews of Redfin's other services for home buyers and sellers on Trustpilot have an average of 2.5 out of 5 stars across 7 reviews, although they have nothing to do with selling your home directly to RedfinNow.

How did RedfinNow compare to alternatives?

RedfinNow vs. real estate agent

If you rejected RedfinNow’s final cash offer, the company would try to steer you toward working with one of its agents.

We found that while Redfin does offer savings, it doesn’t always deliver on customer service — particularly its in-house agents’ experience and responsiveness. So if you're considering listing 

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, agent matching services like Clever Real Estate can introduce you to top realtors from major brokerages like RE/MAX, Coldwell Banker, and Keller Williams. You'll get full-service AND pay a listing fee of just $3,000 or 1.5% of the home price, thanks to our pre-negotiated low rates. Plus, Clever can provide you with offers from companies like Opendoor, Offerpad, and RedfinNow to compare all of your options.

RedfinNow vs. Opendoor

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

Even when RedfinNow was still in business, Opendoor was 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 4.2/5 stars stand out. The company plans to expand to 100 markets across the nation.

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

One advantage of Redfin had over Opendoor was 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 made it a more expensive and less certain option than other iBuyers. So even when it was in business, we didn't recommend it.

Hot real estate markets like the ones RedfinNow operated 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 deciding whether a cash offer from an iBuyer is right for your home sale, Clever Offers can help. With Clever, you can compare multiple cash offers from leading investors and iBuyers in your area. Best of all, Clever's service is free with no obligation — so you can compare your options and make an informed decision without committing to move forward.

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