Note: This study was updated on September 29 to reflect 2014 performance metrics.
Once again, Redfin has crunched the numbers and we found that homes listed with a Redfin agent sell faster and for more money. Redfin agents sold homes an average of 10 days faster and for $5,100 more. Additionally, a higher percentage of Redfin listings sell within 90 days, meaning less risk for our customers.
For this study, we analyzed Redfin listings as well as 36,514 comparable listings that went on the market in 2014. Below is a breakdown of the results in 15 markets across the country.
In every market but one, Redfin-listed homes sold for more money.
Redfin listings also have a higher chance of selling, with 75 percent of listings selling within 90 days, compared with 66 percent among comparable listings.
And Redfin listings sold faster in every market but Austin and San Francisco, with an average speed advantage of 10 days and as many as 17 in Baltimore.
We think there are three main reasons:
First, Redfin listings get more exposure. 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 our site and are also promoted in targeted display ads, resulting in twice as many views as other listings.
Second, Redfin provides each listing client with a customized, highly targeted email and online marketing campaign.
- Finally, Redfin agents are paid based on customer satisfaction, not commission. This makes us accountable to not just close a good deal, but to tell you when to walk away from a bad one, too.
Better Service; Lower Commission
Redfin also charges a lower commission, which puts even more money in sellers’ pockets. The average commission for selling a home is about 3 percent of the home’s price. Redfin charges 1.5 percent, which means that people who list with Redfin pay an average of $6,800 less in commission. When you combine the commission savings with the higher average sales price, sellers who list with Redfin save about $11,900.
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
Our agents are experts in their markets and help properly price clients’ homes and guide them every step of the way. Redfin also provides:
- open houses (as many as appropriate);
- email campaigns targeted to buyers who are searching for homes like yours;
- professionally designed print brochures for every listing; and
- a team-based approach so that someone is always available.
What’s more, Redfin surveys every client about their experience and posts all reviews, both positive and negative. Find a Redfin agent in your area.
In addition to customized marketing for each home, Redfin is constantly improving its technology and creating new features, including:
Redfin 3D Walkthrough lets homebuyers take an interactive, online tour of a Redfin listing. Currently featured in Seattle and in our California markets, and rolling out to additional markets in future months.
Redfin Price Whisperer is featured in many markets, allowing home sellers to get feedback on a price before listing.
Redfin Home Dashboard is a comprehensive online resource where home sellers can see exactly when buyer interest is spiking and what’s next for their listing.
Redfin Matchmaker recommends listings to homebuyers based on their search activity and drives additional traffic to Redfin-listed homes.
Redfin Home Value Tool is a more accurate way to find out what a home is worth using self-selected comparable homes for sale in the local market.
Redfin App for iPhone, iPad, or Android notifies buyers about new listings immediately and enables them to schedule tours on the spot.
How Did We Come Up With These Numbers?
For each Redfin listing that came on the market between January 1 and August 31 in 2014, 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 price, square footage and listing date. All told, we looked at 36,514 listings in 15 Redfin markets: Austin, Baltimore, Boston, Chicago, Denver, Houston, Los Angeles, Phoenix, Portland, Riverside, Calif. San Diego, San Francisco, San Jose, Seattle, and Washington, D.C.
We calculated the days on market and the ratio of the sale price to the original list price for each sold home. To determine the sale price performance advantage, we calculated the average difference in sale to original list price for Redfin listings versus comparable listings, plus the average savings from lower commission fees. The close rate is determined by calculating the percentage of homes listed and sold within 90 days.