Redfin vs Real Estate Agent
So we've all see the billboards and commercials. Redfin offers to list your home at a measly 1% of the sales price of your home compared to a real estate agent who usually charges a 3% fee. Seems like a no brainer right? So what's the catch.
First off let me start off by saying that I do the exact same job everyday- negotiating, writing contracts, providing knowledge and insight for my clients best interest and I make the same (negotiable 3%) salary on every job why would I settle for ⅓ of the salary I usually make? What gives.
Here is a real review from a Redfin agent on the website Glassdoor “The pay per transaction is sickening. You could sell a million dollar home and only get paid $2,400 which in this case Redfin is taking in $15,000. I’ve had worse pay scenarios. You’re also paid based on the clients satisfaction whether or not you closed with them. As a listing agent this is extremely unfair. And if you get just a few bad reviews that means every bonus you get goes down from there. The salary is so small it couldn’t pay a car payment per month so it is very important to get a good bonus. They add different goals to hit an award tear every few months to make it impossible for you to hit a tear in order to actually make decent money. I feel like you work harder to get paid less here. It’s a terrible concept and extremely unfair. They try to make it okay by providing this Redfin culture which I have since stopped my involvement. I do not understand how any agent is okay getting paid like this and it makes me wonder if it is this way for everyone.”
Here's another one.
“Agents expect you to work whatever hours it takes to get the job done. Including over 25 hours of overtime during the busy season. No other option”
So if you were working 25 hours of overtime a week to make ends meet do you think you would be giving every transaction you had your all? Your full focused attention? Negotiating in your buyers best interest and ensuring they got the home for the best possible price? Doubtful.
Agents working for redfin get a stream of high volume leads and are expected to work them all. They are paid low pay per closed transaction, very low pay and they are compromised on ability to deliver quality customer service due to the volume of business. Lets not forget that you are passed around a support team when that agent is not available. No consistent right of contact. Property views are also a whole different story. Viewings are an automated touring agent who you have never met and knows no specifics on the property.
Also with such a low listing fee do you think they are marketing your home to the fullest. Or are they taking photos and slapping it on the MLS. Agents (good ones) meanwhile are conducting 3D tours of your home for out of state buyers, sending “just listed” postcards to neighboring homes- a large percentage of home buyers that purchase a home, live in the neighborhood or have friends or family looking in the area. Not to mention holding your home open to prospective clients who don't have an agent. Paying for staging of your home if its needed. Boosting your home on social media pages- Facebook, Instagram, LinkedIn. Lets not forget about there huge client base themselves. We just listed a home and it ended up being our own buyer buying from the seller. Two birds with one stone.
Let's crunch the numbers.
Our average list price to sales price is 100.95% in 30 days.
Theirs is 99.18% in 25 days.
That is nearly a 2% difference in sales price. What does that mean? It means based on experienced realtors who are properly marketing and listing your home value correctly- it costs the same to use Redfin or your local real estate agent.
So yes, Redfin can list your home for 1% vs the negotiable 3% of an agent. But is it worth it. Would you be willing to pay the extra 2% to ensure a smooth stress free process with someone who knows exactly how to sell your home or gamble on Redfin for a couple bucks?
Buyers Side: I could go on and on why not to use Redfin on the buyers side however I am just going to drop a link to this article. Keep in mind buyers don’t pay an agent fees, sellers pay this. Use an established realtor, use a friends recommendation, I heard your second cousin is into real estate- anyone but Redfin. https://mustardseedmoney.com/redfin-vs-traditional-agent/
Not sure on what to do? Let us help you make your decision! Have a home to sell? Let us give you a free competitive market value on what it's worth. 817-366-8940
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