Home Bay Review

Ashley Simon's Photo
By Ashley Simon Updated April 11, 2024


What is Home Bay? | Is Home Bay legit? | How it works | Pricing | Home Bay vs. FSBO | Alternatives | Selling | Buying | Rebates | Reviews | Contact info

Home Bay reviews

⚠️ Update (2022): Home Bay was a San Diego-based real estate brokerage with a 100% digital business model that relied on technology rather than on-the-ground agents. Despite raising an impressive $19 million in investments, Home Bay ceased operations in September 2021. The following review covers Home Bay's services up until its closing.

Like Home Bay, Clever is on a mission to make real estate more transparent, honest, and affordable. That's why we purchased Home Bay and its extensive library of educational content in late 2021.

Today, Home Bay is an online resource to help buyers and sellers navigate their real estate journeys. But if you're here looking to sell your house and save, you still have plenty of options!

The easiest way to save on realtor fees is to sell with a discount real estate brokerage. We've researched, reviewed, and ranked all the top options, so you can find the best fit for your needs and budget.

» MORE: Compare the best low commission real estate companies!

Show more

Home Bay is a discount real estate broker that offers reduced listing fees to home sellers in California.

But there are some pretty big tradeoffs:

Unlike other discount brokers, Home Bay makes you do most of the heavy lifting yourself. Customers typically get less than 90 minutes of contact with an agent.

Since Home Buy offers a process that's largely DIY, most home sellers will be able to find better service for the same price — or the same service for a LOT less.

» MORE: Save on commission without sacrificing service

What is Home Bay?

Home Bay is a discount real estate brokerage with licensed agents who can help you buy or sell a home in California. Somewhere else? Find discount brokers near you.

There are many differences between selling with Home Bay and a traditional realtor. The two biggest you should be aware of are:

  • Price: Home Bay advertises huge savings compared to selling a house the old-fashioned way
  • Service: Home Bay provides significantly less hands-on service and support compared to a traditional real estate agent

💡 What makes Home Bay different?

Unlike most real estate brokers, Home Bay focuses on its online platform, rather than providing in-person support. It's a tech startup first — and a real estate company second. Its priorities are evident in its legal name: Home Bay Technologies Inc.

» MORE: How does Home Bay work?

Show more

Home Bay also offers mortgages to all homebuyers in California; you don't need to purchase a property through the company to obtain a Home Bay mortgage.

Is Home Bay legitimate?

Yes, Home Bay is a legitimate, registered real estate brokerage brokerage. However, the company has gone through significant leadership turnover and appears to have shaky business prospects.

Leadership turnover and legal issues

For one thing, the company is on its second CEO in five years. And recent Glassdoor reviews of Home Bay complain of weak leadership.

In 2017, the State of California's Bureau of Real Estate filed an accusation against the company for not collecting commissions under its proper licensed name. The case resulted in only minor disciplinary action, but sheds negative light on Home Bay's management.[1]

What happened to Home Bay's aggressive expansion plans?

We're also concerned by the fact that Home Bay hasn't become the tech disruptor that its investors had hoped for. The company has received more than $19 million in funding rounds earmarked for expansion but has instead shrunk in geographic scope.[2]

Home Bay is shrinking rapidly — not growing

Home Bay Agents used to serve Colorado, Florida, Georgia, Illinois, and Texas. And in January 2019, CEO Ken Potashner reported planned expansion into as many as 20 additional states by the end of the year.[3]

Not only did that growth not happen, but now the company has dwindled down to a focus on just California.

Home Bay is looking to sell its proprietary listing platform to other brokerage firms, perhaps in a way to make up for lost ground. The company paints a picture of a worrisome dependence on technology over customer experience and getting sellers the most money for their homes.

✍️ Editor’s note

We don't think Home Bay's business model is sustainable. Another brokerage we've reviewed, Faira Real Estate, used to bill itself as a tech disruptor but has since modified its business to include more human interaction and support after its listings started shrinking. We're concerned for the future of these businesses.

Show more

When you list your home, you want to have confidence that an agent is looking out for your best interests. We recommend exploring different options in the discount brokerage space.

» SAVE: Match with top agents nationwide — get full service for $3.5k or 1.5%

How does Home Bay work?

Home Bay's business model is 100% technology based.

Sellers list on the Home Bay listing platform (plus the MLS, as with most other discount brokers). The platform then "walks" them through the listing process.

You won't meet your agent in person

Although you can call a dedicated agent, you'll NEVER meet in person, and they won't come to your home.

Offers are made and negotiated directly through the Home Bay platform.

AI will help you evaluate offers

The company's marketing states that its system "automatically red flags" potential "issues" in an offer. We're unsure if AI can be as attentive as an agent who knows your home and area well.

Sometimes there's just no substitute for expert professional representation in a huge transaction such as a home sale.

Don't rely just on AI to review offers on your home. At the very least, make sure to always carefully read the fine print — even if you're working with an agent.

How much does Home Bay cost?

Home Bay charges a flat fee to the seller that varies based on your listing price. Here's what you can expect to pay at different price points:

Price Point Flat Fee Percentage
$100,000 $2,000 2%
$250,000 $2,250 0.9%
$500,000 $4,000 0.8%
$750,000 $6,000 0.8%
Average $3,560 1.3%
Show more

By using Home Bay, you can see significant savings compared to the 3% listing commission usually paid to an agent — though of course, keep in mind the significant difference in service.

📢 Watch out for Home Bay's upfront fees!

When you sign a 90-day contract with Home Bay, you'll be required to pay 10% of your fee up front. This is VERY unusual — even among discount brokers.

Show more

If you cancel your contract before 90 days, you'll forfeit your 10% deposit. If your home fails to sell within 90 days, Home Bay will refund the deposit back to you.

Don't forget about buyer's agent commission

Keep in mind that, as with all home transactions, in addition to the listing fee, you should expect to cover the buyer's agent commission. This typically costs 2.5-3%. But Home Bay allows you to decide yourself how much to offer.

Make sure to research average buyer's agent commissions in your area. If you offer a percentage that’s too low, agents might not feel compelled to bring their clients to your listing.

» MORE: Average real estate commission rates in California

Home Bay vs. for sale by owner

Many sellers discover Home Bay while researching options for marketing their home "for sale by owner," or FSBO.

FSBO is risky — but may be a better option than Home Bay

FSBO comes with its own risks:

  • You need to be comfortable with a DIY approach
  • It takes a lot of experience to manage a home sale successfully

Many FSBO properties fail to sell for many months before the sellers ultimately decide to list with a traditional real estate agent.

However, when FSBO works, it can save you a ton of money — significantly more than with Home Bay’s hefty listing fees.

» LEARN: How to sell your house for sale by owner

Consider a flat-fee MLS service before you list with Home Bay

When listing a home for sale by owner, you don't need to handle the transaction entirely by yourself, either. There are a number of services that can help you market your home and even review the paperwork for just a fraction of Home Bay's price.

💰 Flat-fee MLS services offer BIG savings over Home Bay

Flat-fee MLS services can help you market a FSBO property and even provide extra services such as contract negotiation.

These services cost just a fraction of Home Bay's fee; our research indicates that typical rates for flat-fee MLS services in California are just $195-1,295.

» MORE: The BEST flat-fee MLS services in California

Show more

You could also hire a real estate attorney to handle the paperwork if that's the aspect of the sale you feel most uncomfortable with. (And in fact, some states other than California require a lawyer to be present at closing.) You can expect to pay as little as $150 per hour for such a service.

» LEARN: What you need to know about flat-fee MLS listings

What if you want to save — but aren't comfortable with a DIY sale?

If you feel less confident handling a home sale yourself, there are options that offer the support of a full-service agent who will work with you in person for roughly the same price that Home Bay charges.

💰 Compare low commission agents and save thousands

Try our free, no-obligation agent-matching service! Clever will get proposals from the top agents in your area — and negotiate discounted 1.5% listing fees.

How does Home Bay compare to top alternatives?

Compared to other discount brokers, Home Bay looks like it could save you a ton of money.

However, when you compare its offerings with what you get from services such as Clever or Redfin, its price tag looks unappealing.

Home Bay offers MUCH less support than other discount brokers

Home Bay offers no in-person support — unlike the other brokers on this short list.

📢 Don't expect much facetime with a Home Bay Agent

According to Home Bay CEO Ken Potashner, customers get an average of 90 minutes of human interaction during their ENTIRE sale process. That's much less support than you can expect from a traditional agent.

Will you feel your needs have been met after only an hour-and-a-half of attention?

Show more

Sellers are expected to do the work themselves when they pay for Home Bay. The platform "guides" you along through the steps of a home sale. There's no experienced agent looking to get you the highest price for your home.

Our No. 1 piece of advice for anyone looking for an agent to list their home is to shop around and interview several realtors in your area.

» MORE: Compare top local agents, save thousands on commission

Home Bay is comparable to MLS listing services — just a lot more expensive

On the other hand, if you're comfortable managing your home sale yourself — and don't want to pay a full-service realtor — you're probably better off using a flat-fee MLS listing service.

For a few hundred bucks, one of these services will:

  • List your home on the MLS
  • Give limited pricing support
  • Provide downloadable contracts, disclosures, and other documents

Home Bay does offer a few services that flat-fee MLS listing companies don't offer, including: professional photos, yard sign, limited agent support, and an online platform to help you manage your sale.

However, considering that going the flat-fee MLS route will likely cost thousands of dollars less than Home Bay, you'll still come out ahead if you purchase any extra services you need a la carte.

» COMPARE: Flat-fee MLS listing services vs. full-service realtors

Selling a house with Home Bay

On paper, Home Bay offers many of the same the services traditional agents provide:

Service Home Bay Traditional Agent
Local MLS Listing
Dedicated Agent
In-home Consult
Yard Sign
Open House
Show more

Listing with Home Bay might not actually save you money

However, although you'll save money on the listing fee, you might lose serious cash in the long run.

Remember: you'll never meet your Home Bay Agent in person. This means your agent can't give you the most accurate advice about important considerations like:

  • Pricing your home
  • Repairs and you should make
  • Cosmetic improvements and staging

That could lead to getting a lower price than you deserve for your home or having your listing sit on the MLS for months because it's overpriced.

That could be a costly problem. Not only would you be paying carrying costs such as taxes, utility bills, and HOA fees, but buyers might become skeptical of a home that's been on the market for a long time. They might assume something is wrong with your property and even avoid making an offer if you lower the price later.

Be prepared to sign a 90-day contract — and pay up-front fees

When you agree to use Home Bay to list your home, you'll sign a 90-day contract and put down 10% of the flat-fee listing commission.

If you break your contract before 90 days, you'll forfeit your deposit money. However, if you don't sell your home with Home Bay and cancel after 90 days, you'll get your money back.

📢 Why Home Bay's upfront deposit is shady

We have suspicions that Home Bay might try to push home sales through within 90 days to keep the deposit cash. After all, the company claims 94% of sales are made in the first 90 days.

Show more

However you slice it, the 10% deposit is an unusual practice. Most brokers do NOT make you pay one cent in advance.

That said, fees for breaking contracts are common. The amount you could lose for breaking a Home Bay agreement could work out to about the same or even less than what other brokers would charge.

Always make sure that you do your due diligence and read the fine print before signing any kind of contract.

» LEARN: Read this BEFORE you sign a listing agreement

How good are Home Bay Agents?

Home Bay Agents are fully licensed realtors. They provide the same basic range of services as traditional real estate agents, although there are some BIG differences to watch out for.

Home Bay Agents have less direct incentive

One of the biggest differences between Home Bay Agents and traditional realtors is the compensation and incentive structure.

Home Bay Agents receive a salary. That's unlike traditional real estate agents who are paid commission and make money only when they have helped their clients sell their homes.

One agent told us that they also receive a bonus if you leave them a positive review. However, it's unlikely this bonus is as large as the commission traditional real estate agents earn.

💰 Realtor incentives matter!

A salaried Home Bay Agent just might not be willing to go above and beyond to get sellers top price for their homes. After all, they're on the clock and earn the same salary no matter how much your home sells for.

Plus, it's unlikely the top home-selling talent in your area is going to be working a salaried job. They're going to be competing to earn more money on a "pay for performance" model.

Show more

Home Bay Agents handle the ENTIRE sales process remotely

Home Bay can pay its agents less because sales are completely remote. All of your communication with your agent will occur via the listing platform or phone. And don't expect to receive white-glove, personalized care.

We recommend shopping around for an agent who will provide hands-on service and fight to get you the best price for your home.

If personalized service and support is a top priority, Clever Real Estate can help. Clever’s agent-matching service not only connects you with local agents from major brands like Keller Williams, RE/MAX, and Century 21, but also negotiates low rates on your behalf.

» LEARN: How Clever’s free Concierge service helps you compare top agents

Buying a house with Home Bay

The biggest advantage of using Home Bay to buy a property is the potential to earn a commission rebate.

💡 What is a home buyer rebate?

Many discount brokers and traditional agents alike will offer to kick a percentage of their fee back to a buyer as an incentive to work with them. This is commonly referred to as a home buyer rebate or commission rebate.

» MORE: What you should know about home buyer rebates

Show more

How does Home Bay's buyer rebate work?

Home Bay advertises that you'll receive 10% of the buyer's agent commission back at closing.

That sounds like a huge percentage at first glance. But framing it this way is a bit misleading.

Home Bay's rebate advertising is misleading

Most other discount brokerages that offer rebates advertise them as a percentage of the sale price.

Measured this way, Home Bay's rebate is really 0.25-0.3%, depending on the size of the buyer's agent commission. And it's quite a bit smaller than the commission rebates offered by other companies:

Home buyer rebate on a typical California home

Use caution when buying with a Home Bay Agent

When you buy a home with Home Bay, you'll be connected with what the company calls a "showing coordinator." The company isn't very forthcoming as to whether these people are licensed real estate agents or not.

The basic function of a showing coordinator is exactly what you'd expect: to show houses to prospective buyers.

Once you've found a home you wish to buy, someone else on the Home Bay team will help with negotiations, paperwork, etc.

Can you use a Home Bay showing coordinator to view a non-Home Bay listed house? And can you buy an "outside" house using the platform? The company doesn't make this very clear. In fact, its marketing message suggests the opposite.

However, we phoned a Home Bay Agent who informed us that you can use the company to view and purchase a non-Home Bay listed home. We take this as more evidence of Home Bay's confusing and disorganized business model.

Watch out for the 'Home Bay upsell'

Another risk of using Home Bay is the potential for an upsell.

We're concerned that Home Bay employees might pressure you to use Home Bay Financial's mortgage services.

Using a one-stop-shop for your home-buying and financing needs might seem convenient, but that's what discount brokers like Home Bay count on.

The products Home Bay offers might not be the best fit for you.

Remember: it pays to shop around when considering agents, mortgage providers, title companies, and so on, to find the best fit.

Compare top buyer’s agents near you

Clever matches you with top agents in your area and helps you find the perfect fit. Qualifying buyers can also get cash back after closing.

Home Bay reviews

Note: The following review information is up-to-date as of 10/21/2022. We will update this section as new information becomes available.

Rating # of reviews
Weighted Avg 4.5 519
Trustpilot 4.5 270
Zillow 4.7 127
Google 4.2 106
Yelp 4 16
Show more

Customer reviews of Home Bay are a mixed bag. The company has an average rating of 4.5 across 519 reviews.

My Home Bay Agent made my sale 'easy' and virtually stress-free

This Home Bay reviewer reported a positive experience on Zillow. At the time, the reviewer was living on the East Coast and appreciated Home Bay's remote platform for selling a home in California:

My brother and I used the services of HomeBay to sell property we jointly owned in CA, at the time I lived in MD. We had the best experience with this company. Our HomeBay rep, Aaron Ray, walked us through the entire process, explained the rate structure and the services provided. It was seamless. They supplied the photographer for the house (minimal cost, but definitely worth it) and the escrow company. Everything was done over the internet which made the whole process so easy with virtually no stress that usually comes with selling a home. And it was very good for me, not living in the state where the house is located. We were able to speak directly with Aaron via telephone or email. And, all of our questions were answered timely and knowledgeably. I would definitely recommend that anyone attempting to sell a house; use Homebay, if just for the cost, it is beyond worthy. Thank you HomeBay and more specifically Aaron Ray!

'Stay away' from Home Bay

On the other hand, Zillow user FreyaMcKenna4 was less enthusiastic. She complained about terrible communication and warns others to avoid Home Bay "like the plague":

Stay away from this company! They are awful! My realtor made no recommendations, rarely responded to my concerns and questions, and when they admitted they made a mistake and would return my deposit, decided that because my home didn’t sell (because they listed it incorrectly for two months!), I could no longer have my deposit back. He also completely forgot or just didn’t care about the details of our house. When I requested to speak to a supervisor and called and called, no one would call me back and the supervisor avoided answering my calls.

There are better ways to get a lower commission rate and still have a realtor that will work for you and actually TRIES to sell your house! I would advise anyone to avoid this company like the plague!

Home Bay is the 'absolute worst choice you can make'

Likewise, markcole5460 complained on Zillow about unresponsive agents and poor help when pricing their home:

This place is the absolute worst choice you can make when trying to sell your home. The cliche 'you get what you pay for' never rang truer. Recently I tried this place and the experience was the worst. in 2 1/2 months I had only 5 showings, and had to lower the price of my home by $50K. All the while they the original price @ $350K was good. When I called them out on it, the broker in Denver pointed her finger at me saying it was all my fault. Stating that I had refused

Conclusion: Is Home Bay right for you?

Pros of using Home Bay

  • Home Bay's discounted listing fees are much cheaper than selling with a traditional realtor
  • Qualified buyers can get up to 0.3% back at closing
Cons of using Home Bay

  • Home Bay provides a similar level of service to a flat-fee MLS service — but costs a LOT more
  • Home Bay Agents spend hardly any time with you, making it difficult for them to give you good advice about your sale
  • Home Bay charges a 10% upfront deposit — which you lose if you cancel the contract within 90 days
Show more

Most of the discount brokers we've reviewed can be a better or worse choice depending on your situation. That's NOT the case with Home Bay.

Unfortunately, we can't recommend that anyone use Home Bay.

Home Bay costs as much as a discount broker. But most discount brokers provide full-service agent representation. Home Bay's limited level of support is a lot more comparable to a flat-fee MLS listing company — except Home Bay costs thousands of dollars more.

Home Bay's geographically shrinking business gives us pause too. The company had hoped to expand into nearly half of the U.S. by the end of 2019. One year later, its focus has narrowed to one — yes, one — state: California. This is compounded by evidence of mismanagement and poor leadership.

Selling a home is a high-stakes process. And most California home sellers have lots of options when it comes to saving on real estate commission. We recommend that you shop around. Look for the service or agent who is going to:

  • Get you the best price for your home
  • Make the experience as smooth and painless as possible

Interview agents who have experience and knowledge in your area and at your price point. You have absolutely nothing to lose (and everything to gain!) by shopping around and comparing rates, experience, and personalities to find the perfect fit.

👋 Next Steps: Talk to an expert

If you're weighing your options for buying or selling a house, Clever can help!

Our fully licensed concierge team can answer your questions and provide objective advice on getting the best outcome with your sale or purchase.

When you enter your info below, we'll ask you a few questions about your situation via a short form. Then our concierge team will be in touch shortly to help.

This service is free, and there’s never any obligation to move forward with us.

Home Bay contact info and business hours

Home Bay's business hours

Monday-Friday 9am-6pm PT
Show more

Home Bay's contact information

Phone (888) 544-4239
Email [email protected]
Office address 16950 Via De Santa Fe
Suite 5060-106
Rancho Santa Fe, CA 92067
Show more

Article Sources

[1] California Bureau of Real Estate – "Accusation Against HomeBay Broker CA, Inc". Accessed 10/21/2022.
[2] Crunchbase – "Home Bay Technologies Crunchbase Profile". Accessed 10/21/2022.

Authors & Editorial History

Our experts continually research, evaluate, and monitor real estate companies and industry trends. We update our articles when new information becomes available.

Better real estate agents at a better rate

Enter your zip code to see if Clever has a partner agent in your area
If you don't love your Clever partner agent, you can request to meet with another, or shake hands and go a different direction. We offer this because we're confident you're going to love working with a Clever Partner Agent.