Once again, Redfin has crunched the numbers and, once again, we found that homes listed with Redfin sell faster and for more money. For this study, we analyzed 55,000 listings that went on the market in 2013. Homes listed with Redfin agents sold an average of 15 percent, or three days, faster and for $2,424 more than comparable homes.
With softening demand in some markets, many sellers will welcome a competitive advantage this year. “Homes that would have drawn 20 offers in two days last year are now getting just a few offers over several weeks”, said Los Angeles Realtor Eric Tan.
Below is a breakdown of the results in 14 markets* across the country. In every market but three, Redfin-listed homes sold for more money.
Redfin listings sold faster in every market but Denver, with an advantage of as much as 12 days in Austin and Baltimore.
Three reasons. First, Redfin listings get more exposure. Redfin.com is consistently ranked as the most-visited real estate brokerage website. 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 homes. Second, Redfin provides each listing client with a customized, highly targeted email and online marketing campaign. Redfin agents are paid based on customer satisfaction, not commission, so we’re accountable for delivering on the price we promise, and are more likely to hold out for the best deal.
Better Service; Lower Commission
In addition to getting a higher selling price, Redfin charges a lower commission, which puts even more money in sellers’ pockets. The typical 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 $6,579 less in commission. When you combine the commission savings with the higher average sales price, sellers who list with Redfin will have around $9,003 more in their pocket.
How can Redfin give better service but charge less? Millions of people use 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 listing business is growing at more than 100 percent a year. Our agents are experts in their markets and will help properly price your home and guide you through the process. We also provide:
- 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 to assist you.
What’s more, Redfin surveys every client about their experience and posts all reviews, both positive and negative. Learn more about Redfin agents here.
In addition to customized marketing for each home, Redfin is constantly improving its technology and creating new features. Since early 2013, the company has:
- unveiled the Redfin Price Whisperer feature in many markets, allowing home sellers to get feedback on a price before listing.
- launched Redfin Matchmaker to recommend listings to homebuyers based on their search activity and to drive more traffic to Redfin-listed homes.
- launched the improved Redfin Home Value Tool, a more accurate way to find out what a home is worth using self-selected comparable homes for sale in the local market.
- upgraded Redfin mobile tools, to let buyers know about new listings immediately and enable them to schedule tours very quickly.
How Did We Come Up With These Numbers?
For each Redfin listing that came on the market between January and December 2013, 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 55,000 listings in 21 Redfin markets: Atlanta, Austin, Baltimore, Boston, Chicago, Denver, Long Island, Los Angeles, Miami, Philadelphia, Phoenix, Portland, Providence, Raleigh, Riverside, Calif. San Diego, San Francisco, San Jose, Seattle, Ventura, Calif., and Washington, D.C.
We calculated the days on market and the ratio of the sale price to the original price for each sold home. To determine the price 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.
*Redfin listings in Atlanta, Miami, Raleigh, Philadelphia, Providence, Long Island and Ventura, Calif., consistently sold faster and for more money than listings of other brokerages, but the sample size in each of those cities was not large enough for us to break out the differences by market.