Compare RedfinNow and Homie

For Sellers

Cash Offers
15%-20%
Home Equity
RedfinNow does not provide real estate services to home sellers. Instead, the company buys homes directly, repairs and resells them to consumers or investment companies that rent them to tenants. RedfinNow make an offer equal to 80%-85% of home value accounting for fees and any cost of the repairs and resale.

For Sellers

Listing Rate
$1,500
Flat Fee
Minimum commissions and other terms may apply. Buyer's Agent Commission (2.5%-3%) is not included, but sellers may be able to negotiate this as well. The flat listing fee is paid $199 in advance, plus $1,299 at closing.

For Buyers

Not Applicable
0
No Rates
RedfinNow does not provide real estate services to home buyers. RedfinNow does resell some of the homes it buys on the open market, just like any other real estate investor aiming for the highest return on investment.

For Buyers

Buyer’s Savings
$5,000
Flat Refund
When Homie represents buyers, it contributes $5,000 from its total Buyer's Agent Commission (2.5%-3%) as a way to financially compete for a buyer’s business. Home buyers do not pay any taxes on the amount, the refund amount is always tax-free.
Question: What is the difference between RedfinNow and Homie?
Answer: RedfinNow is a direct home cash buyer that buys select homes off-market with cash offers and resells them at a profit to homebuyers while Homie is a full-service real estate agent that offers savings to homebuyers and home sellers
Compare RedfinNow and Homie for home buying and selling. HomeOpenly is an impartial and an open resource focused on trending real estate services, portals and start-ups.

First published: 17 February 2019
Last updated: 25 April 2021

Buying and Selling with RedfinNow

RedfinNow is a real estate investment company, owned by Redfin. RedfinNow is one of the only direct home buyers that openly admits that when listing a home on the open market, sellers may be able to sell a home for more than RedfinNow's offer price.

RedfinNow does not represent sellers in the sale of their home. If a seller decides to sell to RedfinNow, neither Redfin nor RedfinNow will represent the seller's interests regarding the sale.

RedfinNow further recommends that sellers seek independent representation in the sale of a home, which directly contradicts the claim that RedfinNow process saves 4%-6% in traditional real estate agent commissions.

RedfinNow Pricing

RedfinNow makes money with a difference between buying and selling each home. This difference is a combination of fees and home value appreciation between what RedfinNow buys and seller each home for.

Sellers can expect to receive 80%-85% of their home value from this type of sale after any fees, cost of the minor repairs, and resale. RedfinNow claims 7% - 9% in service fees, but this amount does not include a discounted cash offer seller typically receives.

Listing Services

  • This Service Does Not Represent Sellers

Buyer's Agent Services

  • This Service Does Not Represent Buyers

RedfinNow Editor's Review:

RedfinNow will buy a home at a price that is below market value due to necessary repairs, renovation, and other factors. After RedfinNow buys the home, it renovates and resells it for a profit to other buyers or companies that rent homes to qualified tenants.

RedfinNow claims that its fees are limited by 7% - 9% RedfinNow fee, but this fee does not mean that RedfinNow will offer consumers a fair market offer. RedfinNow is not obligated to present consumers with a fair offer for their property because, unlike a real estate agent, it does not represent consumers when selling a home. Additionally, similar to a traditional home sale process, the seller is responsible for covering their closing costs. This typically includes (but is not limited to) title insurance policy, attorney and escrow fees, and any HOA transfer fees.

With higher fees comes a convenience of an all-cash closing when selling a home. RedfinNow claims to provide convenience, speed, and certainty of a fast sale. Dubbed as an iBuyer, RedfinNow makes an offer on a house within days or hours, but this offer is highly conditional.

Each offer RedfinNow makes is just an estimate, it is non-binding until the company makes a home inspection. At the inspection, RedfinNow will often find reasons to lower its original offer when it finds items that need repair or if it has made a mistake in its original valuation.

When the company is unable to make an offer, it simply redirects consumers to a real estate agent - either a Redfin Agent or a partner Agent in exchange for a 30% referral fee. RedfinNow offers fast home sales, but these are typically accompanied by higher fees. RedfinNow only makes offers to select homes in select regions.

The main disadvantage of using RedfinNow is high losses in homeowners’ equity. RedfinNow is a “heavy” model, backed by a large amount of VC capital ready to buy homes in all-cash transactions. As any real estate investor, RedfinNow is susceptible to losing money in any given transaction. This model is susceptible to a number of risk factors, high operational costs and a continued need for higher-than-average Return on Investment (ROI) with each flip. RedfinNow is not legally bound to represent consumers, its main legal obligation is to its shareholders.

RedfinNow’s fast transaction and easy move-out experience typically come at an extremely high price because this model incurs “double” transaction costs during the purchase, holding period, rehab work and final sale that includes real estate agent fees. RedfinNow pays real estate agent commissions like any other buyer and seller of real estate, so these costs must be accounted for in the company’s fee structure.

The facts continue to point against RedfinNow’s claims that it offers fair value for the houses it buys. Moreover, because most homes in the United States are financed, homeowners own only partial net equity in their home. Banks receive the same amount of the remaining mortgage sum regardless of how any given home is sold, whereas only homeowners’ net equity is lost in transaction fees paid to RedfinNow.

Typically RedfinNow uses the following factors when determining the offer: existing condition of the home including repairs needed, time it will take to finish needed repairs, value of a home compared to other comparable homes in the area, real estate commission required to resell, costs associated with maintaining a home during repairs, including taxes, payments, insurance, utilities and homeowner dues.

Today, there are a number of highly qualified real estate agents who offer competitive listing rates and flat fee listings across the United States. Unless a situation absolutely requires a quick sale, HomeOpenly recommends that consumers first consider using a licensed real estate agent working on competitive terms to properly list their homes on the open market before turning to RedfinNow option.

Some real estate agents are now offering Concierge services that include painting, landscaping, and other services that help consumers place their home on the open market without upfront costs and high loss to home equity.

Where does RedfinNow operate?

RedfinNow currently operates in select areas across Orange County, San Diego and the Inland Empire in California .

Buying and Selling with Homie

Homie is a Utah-based broker, offers consumers flat fee listing savings and buyers refunds.

Homie Pricing

Homie offer listing savings ($199 advance, plus $1,299 at closing) and buyer’s refunds ($5,000 subtracted from Buyer’s Agent Commission) for select Utah properties.

Listing Services

  • MLS Listing
  • Zillow, Trulia, etc. Listing
  • Accept and Deliver All Offers and Counteroffers
  • Hold Open Houses
  • Professional Photography
  • Professional Floor Plans
  • Yard Signage Installation
  • Spare Key Lock-box Installation
  • Schedule Inspection Services
  • Schedule Private Showings
  • Closing Duties

Buyer's Agent Services

  • Find the Property
  • Accept and Deliver All Offers and Counteroffers
  • Recommend Other Professionals
  • Attend Inspection Services
  • Schedule Private Showings
  • Negotiate Needed Repairs
  • Closing Duties

Homie Editor's Review:

Homie is a consumer-focused real estate agent that successfully represents consumers across Utah and offers sizeable savings. Homie agents are salaried client-service focused employees who are not motivated by commissions.

Homie service includes posting home on the MLS and MLS Aggregator services, professional photos and 3D images in addition to all typical services offered by a traditional real estate agent. If a seller accepts an offer from a buyer represented by Homie, a $1,299 buyer transaction fee is added, instead of the full buyer agent commission (2.5%-3%) amount advertised on the MLS.

Homie claims that Homie-to-Homie incentive favorably lowers overall transaction costs, but it also requires the buyer to accept the potential downside of dual representation.

For buyers, a flat $5,000 buyer’s refund savings may not work as well for higher-priced properties. For example, if there a 50% buyer’s refund offered by another local agent, the amount can reach $15,000 for a home valued at 1,000,000 USD; in this case, $5,000 is only third of the amount a buyer can potentially receive compared to a 50% refund savings. Still, $5,000 buyer’s refund offered by Homie is a substantial amount that results in legitimate savings to buyers.

Overall Homie offers an excellent proposition to Buyers and Sellers alike.

Where does Homie operate?

Homie currently operates in select areas across Utah, Arizona.