RedfinNow: A Comprehensive Review for 2021 & Beyond

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

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.

» 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?

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

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.

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 compare to alternatives?

RedfinNow vs. other iBuyers

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.

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