This version of the blog post was updated on January 14, 2020 with 2019 home sales data. The original version of this blog post was published on January 26, 2016. It’s subsequently been updated annually to reflect the latest home sales data available.
We crunched the numbers once again and found that homes listed by Redfin agents in 2019 sold for more money, with less risk and in fewer days than homes listed by other brokerages. On average, homes listed by Redfin agents sold for $1,800 more than comparable homes listed by other brokerages.
Redfin listings also had a higher chance of selling, with 76.6 percent of listings selling within 90 days, compared to 75.1 percent among comparable listings across the country. And Redfin listings sold 5 days faster with an average of 36 days on market compared to 41 days for other brokerages. For this study, we analyzed 16,514 Redfin listings that went on the market between January 1, 2019 and August 31, 2019 and 104,156 competitor listings that were found to be comparable*.
Accurate Pricing, More Exposure, Targeted Marketing, Accountable Agents Lead to Better Results
It all starts with the right price. Redfin agents are able to use the Redfin Comparative Market Analysis (CMA) tool to give their customers the most accurate home pricing recommendations based on recent local sales and homebuyer demand. The tool is built upon the same algorithm that powers the Redfin Estimate, which means that Redfin agents use the most up-to-date data available on home listings and sales, plus their own neighborhood expertise, to price homes.
Redfin.com is consistently ranked as the most-visited real estate brokerage website in the markets we serve. Redfin listings come up first in relevant searches on Redfin.com and our mobile apps, where they are promoted in specialized ads. As a result, Redfin listings get three times more online views than other listings on Redfin.com. In addition to maximizing exposure, we do our best to ensure that Redfin listings get in front of serious buyers who are searching for a home just like yours. We use the data we track on homebuyers’ visits to our site and apps and their home searches and Favorites to create customized, highly targeted email and online marketing campaigns for each Redfin listing.
Better Service; Lower Commission
Redfin also charges a lower commission, which puts even more money in sellers’ pockets. Instead of a 2.5 to 3 percent commission, Redfin charges as low as 1 percent of the home’s final sale price**. See full terms and conditions.
How can Redfin give better service but charge less? Millions of people visit Redfin.com to find homes and connect with agents, which means Redfin agents spend zero time finding new clients and all their time serving them. Redfin returns the cost savings from this efficiency to customers through lower commissions.
Check out the Redfin Home Sale Calculator to see how much you could save.
Selling With Redfin
Redfin surveys every client about their experience and posts all reviews, both positive and negative, on Redfin.com. This makes our agents are accountable for their customers’ success.
Redfin agents help clients properly price their home and guide them through the home-selling process from start to finish. Every seller who works with a Redfin agent receives:
- free professional photography;
- a Redfin 3D Walkthrough tour, allowing potential buyers to virtually tour the home;
- open houses (as many as appropriate);
- online marketing and email campaigns targeted to buyers who are searching for similar homes;
- professionally designed print brochures for every listing;
- access to the Redfin Home Dashboard, which allows sellers to track online visits to their listing and the latest competitive market conditions in their neighborhood;
- a dedicated listing agent with experience selling homes in the local area, backed by a team of support staff who make the process run smoothly.
In addition to customized marketing for each home, Redfin is constantly improving its technology and creating new features, including:
- Last Call helps ensure that home sellers who list with Redfin get the highest offers from all interested buyers. When a Redfin listing is about to go off the market or is approaching its offer deadline, Redfin agents can send a “Last Call” email to people who favorited the home or viewed it on Redfin.com or the Redfin mobile app inviting them to make an offer.
- Redfin Price Whisperer allows prospective home sellers to get feedback on a price before listing (not available in all markets).
The Redfin App for Apple Watch, iPhone, iPad or Android will immediately notify interested buyers about your new property listing and enable them to schedule a tour of your home with ease. Find a Redfin agent in your area to sell your home.
How Did We Come up With These Numbers?
For each Redfin listing that came on the market between January 1 and August 31 in 2019, we looked at a group of listings of the same home type (single-family home, condo, etc.) in the same ZIP code that were comparable in terms of list price, square footage, number of bedrooms and bathrooms, and listing date. We included all Redfin listings for which we could find at least one comparable listing in the same zip code. All told, we looked at 16,514 Redfin listings and 104,156 comparable listings. Specific results for the Chicago market are included below.^
We calculated the days on market and the ratio of the sale price to the list price for each sold home. To determine the sale price performance advantage, we calculated the average difference between the sale and the original list prices of Redfin listings versus that of comparable listings. The close rate is determined by calculating the percentage of homes listed and sold within 90 days.
These results were validated by Precision Consulting LLC, an independent third-party data research group. The complete report is available upon request.
^In Chicago, we analyzed 1,296 Redfin listings and 5,864 comparable listings. On average, homes listed by Redfin sold for $3,700 more than comparable homes listed by other Chicago brokerages.
*$1,800 is the average difference between the sale and list prices of Redfin listings versus that of comparable listings by other brokerages. Based on a study of 120,670 properties sold between January 1, 2019 and August 31, 2019.
**Listing fee subject to market-based minimums, as outlined here. Buyer’s agent fee not included. For example, if the buyer’s agent fee is 2.5%, a seller who pays a 1.5% listing fee will pay a total fee of 4%. Listing fee increased by 1% of sale price if buyer is unrepresented. Listing fee and minimums subject to change. Sell for a 1% listing fee only if you also buy with Redfin within 365 days of closing on your Redfin listing. If you sell first, we will initially charge a 1.5% listing fee and then send you a check for the 0.5% difference after you buy your next home with Redfin.