Has anyone used RedfinNow?

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
Post Reply
Topic Author
manatee2005
Posts: 1451
Joined: Wed Dec 18, 2019 9:17 pm

Has anyone used RedfinNow?

Post by manatee2005 »

I was looking up houses on Redfin and it asked me if I wanted to get a cash offer for my house. I guess it’s called RedfinNow.
I said sure why not and they ask to upload 2 pics from each room.

I’m getting the offer next week, I just wanted to compare it with what the cost would be if I used a realtor.

I think the cost would be 5-6% in commission and then 1% in other fees so about 6-7% of the house price is gone to fees.

I live in a planned community where the houses are pretty much the same so I don’t have a question about value. I’m sure they’ll offer me less than what I’d get if I listed it, but I was wondering if it would be worth it by saving on the commission. We have couple of recent sales so I know with high certainty how much I’d get in the open market.

Has anyone else gotten an offer with RedfinNow?
Last edited by manatee2005 on Sun Oct 04, 2020 10:31 pm, edited 1 time in total.
User avatar
RootSki
Posts: 516
Joined: Mon Feb 20, 2017 11:52 am

Re: Has anyone used RedfinNow?

Post by RootSki »

We tried. Could not or would not give a quote without a walkthrough. After the walkthrough the Redfin agent ghosted us. Never again with Redfin. Great app though, I am still using it to try to find my next home.
Topic Author
manatee2005
Posts: 1451
Joined: Wed Dec 18, 2019 9:17 pm

Re: Has anyone used RedfinNow?

Post by manatee2005 »

RootSki wrote: Sun Oct 04, 2020 7:11 pm We tried. Could not or would not give a quote without a walkthrough. After the walkthrough the Redfin agent ghosted us. Never again with Redfin. Great app though, I am still using it to try to find my next home.
Wow that’s pretty bad. I uploaded like 50 pictures hopefully I didn’t do that for nothing haha
rich126
Posts: 2326
Joined: Thu Mar 01, 2018 4:56 pm

Re: Has anyone used RedfinNow?

Post by rich126 »

I didn't go that route. My market was very hot so it sold the first weekend about list price "as is". Can't beat that.

I did have a friend that used some service about a year ago because he didn't want to deal with buyers looking at the home. It went smoothly but I kind of wonder if he left money on the table but I don't think that mattered much to him. He wanted the convenience.

Earlier this year I started to look at the service Zillow had but that didn't include my zip code. Then a few months later it did, but I didn't go through all of the steps they wanted and I'm glad I didn't go that route.
Trader Joe
Posts: 2094
Joined: Fri Apr 25, 2014 6:38 pm

Re: Has anyone used RedfinNow?

Post by Trader Joe »

manatee2005 wrote: Sun Oct 04, 2020 7:08 pm I was looking up houses on Redfin and it asked me if I wanted to get a cash offer for my house. I guess it’s called RedfinNow.
I said sure why not and they ask to upload 2 pics from each house.

I’m getting the offer next week, I just wanted to compare it with what the cost would be if I used a realtor.

I think the cost would be 5-6% in commission and then 1% in other fees so about 6-7% of the house price is gone to fees.

I live in a planned community where the houses are pretty much the same so I don’t have a question about value. I’m sure they’ll offer me less than what I’d get if I listed it, but I was wondering if it would be worth it by saving on the commission. We have couple of recent sales so I know with high certainty how much I’d get in the open market.

Has anyone else gotten an offer with RedfinNow?
No, I do not do internet look ups for Redfin.
Tingting1013
Posts: 703
Joined: Mon Aug 24, 2020 5:44 pm

Re: Has anyone used RedfinNow?

Post by Tingting1013 »

Make sure to also get offers from Opendoor, Zillow Offers, and Offerpad
User avatar
whodidntante
Posts: 9591
Joined: Thu Jan 21, 2016 11:11 pm
Location: outside the echo chamber

Re: Has anyone used RedfinNow?

Post by whodidntante »

I see a lot of "we pay cash for houses" stickers on utility poles but I would not expect an impressive offer from those fine people. So hopefully, RedfinNow is more seller friendly than that. I think it would be fine to wait for their offer if you haven't yet listed the house and can wait. Let us know how attractive their offer was. Maybe they are like Tesla and have lots of investor cash to burn.
User avatar
1210sda
Posts: 1787
Joined: Wed Feb 28, 2007 8:31 am

Re: Has anyone used RedfinNow?

Post by 1210sda »

manatee2005 wrote: Sun Oct 04, 2020 7:08 pm
I’m getting the offer next week, I just wanted to compare it with what the cost would be if I used a realtor.
Please be sure to let us know what happens next week.

In particular, how close their fair market value comes to what you would list your house for on your own. Plus of course their "take". Thanks.
User avatar
unclescrooge
Posts: 5506
Joined: Thu Jun 07, 2012 7:00 pm

Re: Has anyone used RedfinNow?

Post by unclescrooge »

whodidntante wrote: Sun Oct 04, 2020 8:21 pm I see a lot of "we pay cash for houses" stickers on utility poles but I would not expect an impressive offer from those fine people. So hopefully, RedfinNow is more seller friendly than that. I think it would be fine to wait for their offer if you haven't yet listed the house and can wait. Let us know how attractive their offer was. Maybe they are like Tesla and have lots of investor cash to burn.
Friend's in-laws sold an inherited condo that way. They got 60% of market value. Friend found out later and was pretty upset. They were definitely preying on the elderly.
User avatar
unclescrooge
Posts: 5506
Joined: Thu Jun 07, 2012 7:00 pm

Re: Has anyone used RedfinNow?

Post by unclescrooge »

1210sda wrote: Sun Oct 04, 2020 8:32 pm
manatee2005 wrote: Sun Oct 04, 2020 7:08 pm
I’m getting the offer next week, I just wanted to compare it with what the cost would be if I used a realtor.
Please be sure to let us know what happens next week.

In particular, how close their fair market value comes to what you would list your house for on your own. Plus of course their "take". Thanks.
Their business model is to buy houses in need of repair, fix them up, and resell them. If your house is in good condition and you're in no hurry to sell, you will not be impressed by their offer.
Topic Author
manatee2005
Posts: 1451
Joined: Wed Dec 18, 2019 9:17 pm

Re: Has anyone used RedfinNow?

Post by manatee2005 »

unclescrooge wrote: Sun Oct 04, 2020 9:24 pm
whodidntante wrote: Sun Oct 04, 2020 8:21 pm I see a lot of "we pay cash for houses" stickers on utility poles but I would not expect an impressive offer from those fine people. So hopefully, RedfinNow is more seller friendly than that. I think it would be fine to wait for their offer if you haven't yet listed the house and can wait. Let us know how attractive their offer was. Maybe they are like Tesla and have lots of investor cash to burn.
Friend's in-laws sold an inherited condo that way. They got 60% of market value. Friend found out later and was pretty upset. They were definitely preying on the elderly.
Wow, couldn’t they have check the value on Zillow before selling on RedfinNow?

When they presented me with the do I want to get an offer they gave me a range. The bottom of the range was basically value of the house minus 6% commission I would pay to a regular realtor.

That’s kind of what intrigued me.

But yeah I am expecting a Carmax quality of an offer which isn’t much. I just wanted to try it out.

I am not planning on selling until at least June.
Last edited by manatee2005 on Sun Oct 04, 2020 10:42 pm, edited 1 time in total.
Topic Author
manatee2005
Posts: 1451
Joined: Wed Dec 18, 2019 9:17 pm

Re: Has anyone used RedfinNow?

Post by manatee2005 »

1210sda wrote: Sun Oct 04, 2020 8:32 pm
manatee2005 wrote: Sun Oct 04, 2020 7:08 pm
I’m getting the offer next week, I just wanted to compare it with what the cost would be if I used a realtor.
Please be sure to let us know what happens next week.

In particular, how close their fair market value comes to what you would list your house for on your own. Plus of course their "take". Thanks.
Sure. I am pretty aware of what the house would sell for so it will be a good comparison.
Last edited by manatee2005 on Sun Oct 04, 2020 10:46 pm, edited 1 time in total.
User avatar
orcycle
Posts: 151
Joined: Mon Jul 11, 2011 9:44 am

Re: Has anyone used RedfinNow?

Post by orcycle »

I sold a rental property to Opendoor last summer because they offered more than I thought the property was worth. Opendoor immediately put it back on the market after doing some light cosmetic work and landscaping. It sat on the market and eventually sold for 5% less after 4.5 months.

I had read that Opendoor, Zillow, and other companies were losing money on their deals but they were more interested in making money from financing and other ways, Opendoor didn’t seem really attentive to the market which was fine by me, and the deal went through very quickly with no gotchas that I was expecting. Redfin may be acting the same way so you might be pleasantly surprised.
Topic Author
manatee2005
Posts: 1451
Joined: Wed Dec 18, 2019 9:17 pm

Re: Has anyone used RedfinNow?

Post by manatee2005 »

Tingting1013 wrote: Sun Oct 04, 2020 8:19 pm Make sure to also get offers from Opendoor, Zillow Offers, and Offerpad
Opendoor and Zillow offers aren’t available in my zip code.
Topic Author
manatee2005
Posts: 1451
Joined: Wed Dec 18, 2019 9:17 pm

Re: Has anyone used RedfinNow?

Post by manatee2005 »

orcycle wrote: Sun Oct 04, 2020 10:43 pm I sold a rental property to Opendoor last summer because they offered more than I thought the property was worth. Opendoor immediately put it back on the market after doing some light cosmetic work and landscaping. It sat on the market and eventually sold for 5% less after 4.5 months.

I had read that Opendoor, Zillow, and other companies were losing money on their deals but they were more interested in making money from financing and other ways, Opendoor didn’t seem really attentive to the market which was fine by me, and the deal went through very quickly with no gotchas that I was expecting. Redfin may be acting the same way so you might be pleasantly surprised.
Thanks for the heads up. Yeah this is why I trust Redfin more than some random sign “we buy houses 4 cash” on utility poles.
dukeblue219
Posts: 858
Joined: Fri Jan 29, 2016 12:40 pm

Re: Has anyone used RedfinNow?

Post by dukeblue219 »

manatee2005 wrote: Sun Oct 04, 2020 10:33 pmSure. Based on the two sales I’d say my house is worth 870k but then after you pay the realtor commission and other stuff I’d get about 820k.

I’ll see what they offer. Probably 700k haha.
Good luck. A lot of these services are really intended for homes in need of work, and they tend to offer 70-80% of the traditional value.
Topic Author
manatee2005
Posts: 1451
Joined: Wed Dec 18, 2019 9:17 pm

Re: Has anyone used RedfinNow?

Post by manatee2005 »

dukeblue219 wrote: Sun Oct 04, 2020 10:49 pm
manatee2005 wrote: Sun Oct 04, 2020 10:33 pmSure. Based on the two sales I’d say my house is worth 870k but then after you pay the realtor commission and other stuff I’d get about 820k.

I’ll see what they offer. Probably 700k haha.
Good luck. A lot of these services are really intended for homes in need of work, and they tend to offer 70-80% of the traditional value.
Won’t know till I try
User avatar
Elsebet
Posts: 991
Joined: Mon Feb 08, 2016 2:28 pm
Location: Erie, PA

Re: Has anyone used RedfinNow?

Post by Elsebet »

I did not use Redfin specifically but when I relocated earlier this year I sold my house to a real estate investment company. The house was older and had issues but the market was hot enough that I still got a decent price compared to what I paid for it.
"...the man who adapts himself to his slender means and makes himself wealthy on a little sum, is the truly rich man..." ~Seneca
User avatar
jfn111
Posts: 1226
Joined: Fri Nov 08, 2013 10:42 pm
Location: Minnesota

Re: Has anyone used RedfinNow?

Post by jfn111 »

dukeblue219 wrote: Sun Oct 04, 2020 10:49 pm
manatee2005 wrote: Sun Oct 04, 2020 10:33 pmSure. Based on the two sales I’d say my house is worth 870k but then after you pay the realtor commission and other stuff I’d get about 820k.

I’ll see what they offer. Probably 700k haha.
Good luck. A lot of these services are really intended for homes in need of work, and they tend to offer 70-80% of the traditional value.
Actually, most of the IBuyer companies- Zillow, Redfin etc.. are not looking for fixer uppers. You wouldn't want to be sitting in an office in San Francisco or Texas trying to line up local contractors in Minneapolis. They look for people that need a quick closing and they try to profit on the sale, financing and any continuing service they can provide.
snowman
Posts: 1241
Joined: Thu Jan 31, 2013 12:59 pm

Re: Has anyone used RedfinNow?

Post by snowman »

We were going to sell the house this spring, but then COVID hit and we postponed till next year. However, I read online about zillow buying houses, and how competitive their prices are. Specifically, article stated that despite the common belief that zillow is looking for properties in bad shape to fix and profit from sale, reality is that zillow is only looking for good properties in good neighborhoods and their offer price is in-line with the sale prices in that neighborhood.

So just for the fun of it, I called to find out what the catch is. Not sure if RedFin works the same way, but here is my experience with zillow.

I connected with an agent who told me that my house qualifies. She would call in 2 days with actual offer. I asked about commission, and the answer was wishy-washy, like it depends, but we will let you know when we offer price.

When she called back, the price was competitive, on the low end of listing range, but not below it. There were 2 problems - one was commission, calculated to be 7.9%! Wow, so that's where they make their money. The other one was a complete house inspection that would take about 4 hours, and zillow would let me know if or by how much the offer price would be lowered. At that point, I thanked her for her time, and that was the end of it.

In my area, using zillow for the convenience of not having to show the house would be too expensive. The price quoted (and likely to be dinged after inspection based on reading online reviews) was on the low end of listing range, and commission was stratospheric! I think 6% is horrendous, most brokers here now take 5% (which still is high), so jacking it up to 8% is a non-starter.

Having said all that, I think they have a pretty good business model. Their target market is obviously a homeowner who is stressed financially and needs to sell quickly. They only offer to buy properties in good shape, so they eliminate risk of losing the spread to fixing costs. They further insure themselves with proper inspection to eliminate large, hidden risks. Finally, increased commission allows for minor fixes, listing costs, time on the market, and still good profit left.
Topic Author
manatee2005
Posts: 1451
Joined: Wed Dec 18, 2019 9:17 pm

Re: Has anyone used RedfinNow?

Post by manatee2005 »

snowman wrote: Mon Oct 05, 2020 12:25 pm We were going to sell the house this spring, but then COVID hit and we postponed till next year. However, I read online about zillow buying houses, and how competitive their prices are. Specifically, article stated that despite the common belief that zillow is looking for properties in bad shape to fix and profit from sale, reality is that zillow is only looking for good properties in good neighborhoods and their offer price is in-line with the sale prices in that neighborhood.

So just for the fun of it, I called to find out what the catch is. Not sure if RedFin works the same way, but here is my experience with zillow.

I connected with an agent who told me that my house qualifies. She would call in 2 days with actual offer. I asked about commission, and the answer was wishy-washy, like it depends, but we will let you know when we offer price.

When she called back, the price was competitive, on the low end of listing range, but not below it. There were 2 problems - one was commission, calculated to be 7.9%! Wow, so that's where they make their money. The other one was a complete house inspection that would take about 4 hours, and zillow would let me know if or by how much the offer price would be lowered. At that point, I thanked her for her time, and that was the end of it.

In my area, using zillow for the convenience of not having to show the house would be too expensive. The price quoted (and likely to be dinged after inspection based on reading online reviews) was on the low end of listing range, and commission was stratospheric! I think 6% is horrendous, most brokers here now take 5% (which still is high), so jacking it up to 8% is a non-starter.

Having said all that, I think they have a pretty good business model. Their target market is obviously a homeowner who is stressed financially and needs to sell quickly. They only offer to buy properties in good shape, so they eliminate risk of losing the spread to fixing costs. They further insure themselves with proper inspection to eliminate large, hidden risks. Finally, increased commission allows for minor fixes, listing costs, time on the market, and still good profit left.
Thanks for posting your experience. The only reason why this would be attractive to me would be not paying commission but Zillow’s commission is even more than the realtor!
Last edited by manatee2005 on Tue Oct 06, 2020 1:35 am, edited 1 time in total.
User avatar
unclescrooge
Posts: 5506
Joined: Thu Jun 07, 2012 7:00 pm

Re: Has anyone used RedfinNow?

Post by unclescrooge »

manatee2005 wrote: Sun Oct 04, 2020 10:30 pm
unclescrooge wrote: Sun Oct 04, 2020 9:24 pm
whodidntante wrote: Sun Oct 04, 2020 8:21 pm I see a lot of "we pay cash for houses" stickers on utility poles but I would not expect an impressive offer from those fine people. So hopefully, RedfinNow is more seller friendly than that. I think it would be fine to wait for their offer if you haven't yet listed the house and can wait. Let us know how attractive their offer was. Maybe they are like Tesla and have lots of investor cash to burn.
Friend's in-laws sold an inherited condo that way. They got 60% of market value. Friend found out later and was pretty upset. They were definitely preying on the elderly.
Wow, couldn’t they have check the value on Zillow before selling on RedfinNow?

When they presented me with the do I want to get an offer they gave me a range. The bottom of the range was basically value of the house minus 6% commission I would pay to a regular realtor.

That’s kind of what intrigued me.

But yeah I am expecting a Carmax quality of an offer which isn’t much. I just wanted to try it out.

I am not planning on selling until at least June.
I was referring to the We Pay Cash people. The in-laws called off a yellow poster on a telephone pole.

Definitely not the financially savviest on a good day, and less so as old age has set in. It's sad because I know them and they're wonderful people, and through a series of avoidable events will have a dramatically lower standard of living in old age than they possibly could have had.

Not only did they sell the condo for much less than market, they used that to buy a failing business without proper due diligence. :(

In neither case did they reach out to family and it came as a shock to my friend and his wife.

The decline of mental faculties in the elderly is a real concern.
Topic Author
manatee2005
Posts: 1451
Joined: Wed Dec 18, 2019 9:17 pm

Re: Has anyone used RedfinNow?

Post by manatee2005 »

1210sda wrote: Sun Oct 04, 2020 8:32 pm
manatee2005 wrote: Sun Oct 04, 2020 7:08 pm
I’m getting the offer next week, I just wanted to compare it with what the cost would be if I used a realtor.
Please be sure to let us know what happens next week.

In particular, how close their fair market value comes to what you would list your house for on your own. Plus of course their "take". Thanks.
Had the call today. The price was 40k less than what my neighbor went pending at, which is ridiculous. Also the fees are crazy, about 8%. I said I though I wouldn’t have to pay these high fees because I’m not using a realtor and they said they will sell it in a month and they have to pay the buyer agent then so I’m basically paying for the buyer agent even when selling to Redfin.

I felt bad for laughing at her offer, but I’m sure she’s used to it.
User avatar
1210sda
Posts: 1787
Joined: Wed Feb 28, 2007 8:31 am

Re: Has anyone used RedfinNow?

Post by 1210sda »

manatee2005 wrote: Wed Oct 07, 2020 7:27 pm
1210sda wrote: Sun Oct 04, 2020 8:32 pm
manatee2005 wrote: Sun Oct 04, 2020 7:08 pm
I’m getting the offer next week, I just wanted to compare it with what the cost would be if I used a realtor.
Please be sure to let us know what happens next week.

In particular, how close their fair market value comes to what you would list your house for on your own. Plus of course their "take". Thanks.
Had the call today. The price was 40k less than what my neighbor went pending at, which is ridiculous. Also the fees are crazy, about 8%. I said I though I wouldn’t have to pay these high fees because I’m not using a realtor and they said they will sell it in a month and they have to pay the buyer agent then so I’m basically paying for the buyer agent even when selling to Redfin.

I felt bad for laughing at her offer, but I’m sure she’s used to it.
Can you tell us how much of a discount the $40,000 was?
And, are you saying that in addition to the $40,000 lower offer, they would reduce what you get by an additional 8%??
User avatar
KSOC
Posts: 493
Joined: Sat Oct 29, 2016 3:53 pm
Location: Central Pennsylvania

Re: Has anyone used RedfinNow?

Post by KSOC »

Sold our home to Zillow 3 weeks ago. We had another agent we had met earlier give us her proposal on our home. Then decided to see what Zillow was about and they gave us an offer. Zillow's offer was fair, repairs were about what we thought. We had some different circumstances that made the Zillow offer attractive. One was we were very motivated to move (several states), we had found another home (new build, put down a deposit), and because my wife has two cats, saved us from from having to rent (all our nearby family has cat allergies). Closing was on the 15th, new home closing was the 17th, furniture arrived same day. Also saved us storage fees, old home paid off new home so no mortgage, and no need to hit any of our IRA's to bridge the repair/list/show/wait gap a new mortgage would have caused.

So no, we have not used RedfinNow, but we also got an offer from Offerpad. They too did a walk thru, but something spooked them and they pulled their offer.
I'm just sitting here watching the wheels go round and round. | Nobody told me there'd be days like these.
michaeljc70
Posts: 7383
Joined: Thu Oct 15, 2015 3:53 pm

Re: Has anyone used RedfinNow?

Post by michaeljc70 »

1210sda wrote: Thu Oct 08, 2020 3:22 pm
manatee2005 wrote: Wed Oct 07, 2020 7:27 pm
1210sda wrote: Sun Oct 04, 2020 8:32 pm
manatee2005 wrote: Sun Oct 04, 2020 7:08 pm
I’m getting the offer next week, I just wanted to compare it with what the cost would be if I used a realtor.
Please be sure to let us know what happens next week.

In particular, how close their fair market value comes to what you would list your house for on your own. Plus of course their "take". Thanks.
Had the call today. The price was 40k less than what my neighbor went pending at, which is ridiculous. Also the fees are crazy, about 8%. I said I though I wouldn’t have to pay these high fees because I’m not using a realtor and they said they will sell it in a month and they have to pay the buyer agent then so I’m basically paying for the buyer agent even when selling to Redfin.

I felt bad for laughing at her offer, but I’m sure she’s used to it.
Can you tell us how much of a discount the $40,000 was?
And, are you saying that in addition to the $40,000 lower offer, they would reduce what you get by an additional 8%??
Exactly. $40k on a $800k house is different than $40k on a $200k house.

Though there are outliers (even in some threads on Bogleheads), these companies are doing this to make money. They build in the maximin time it would take to sell (in their view) plus a cushion and figure the carrying costs. They add in all the fees/commission for them to sell it. They add in any work that they would be doing to the place.

A friend used a service like this because he inherited the house and didn't care (not very Boglehead like) and I monitored the sale. He got about 75% of what it closed for. Now, he would have had to carry the costs for a few months if he sold it through a realtor. I don't think the company did any or much work. However, he was even allowed to just leave stuff behind (like furniture) which isn't typically allowed in a normal sale. I thought it was foolish/wasteful as he lived in the same town as the home.
Topic Author
manatee2005
Posts: 1451
Joined: Wed Dec 18, 2019 9:17 pm

Re: Has anyone used RedfinNow?

Post by manatee2005 »

1210sda wrote: Thu Oct 08, 2020 3:22 pm
manatee2005 wrote: Wed Oct 07, 2020 7:27 pm
1210sda wrote: Sun Oct 04, 2020 8:32 pm
manatee2005 wrote: Sun Oct 04, 2020 7:08 pm
I’m getting the offer next week, I just wanted to compare it with what the cost would be if I used a realtor.
Please be sure to let us know what happens next week.

In particular, how close their fair market value comes to what you would list your house for on your own. Plus of course their "take". Thanks.
Had the call today. The price was 40k less than what my neighbor went pending at, which is ridiculous. Also the fees are crazy, about 8%. I said I though I wouldn’t have to pay these high fees because I’m not using a realtor and they said they will sell it in a month and they have to pay the buyer agent then so I’m basically paying for the buyer agent even when selling to Redfin.

I felt bad for laughing at her offer, but I’m sure she’s used to it.
Can you tell us how much of a discount the $40,000 was?
And, are you saying that in addition to the $40,000 lower offer, they would reduce what you get by an additional 8%??
40k is about 5%. And then they would take 8% off for fees.
User avatar
1210sda
Posts: 1787
Joined: Wed Feb 28, 2007 8:31 am

Re: Has anyone used RedfinNow?

Post by 1210sda »

manatee2005 wrote: Thu Oct 08, 2020 9:04 pm 40k is about 5%. And then they would take 8% off for fees.


So, after the discount, the offer would be $760k. Then, another $60k for the fees. ($760k x 8%).

An $800k home would net out $700k. A $100k bite.

I guess the comparison would be to the net proceeds of that home in a "normal" transaction. If the sales commission was 6%, that would be $48k. You'd also have to consider fixing up expenses. Possibly additional mortgage payments, property taxes while the house is on the market.

Still, $100k for this price home is pretty steep.
(Sorry, I screwed up the quotes). :oops:
User avatar
whodidntante
Posts: 9591
Joined: Thu Jan 21, 2016 11:11 pm
Location: outside the echo chamber

Re: Has anyone used RedfinNow?

Post by whodidntante »

unclescrooge wrote: Mon Oct 05, 2020 8:03 pm I was referring to the We Pay Cash people. The in-laws called off a yellow poster on a telephone pole.

Definitely not the financially savviest on a good day, and less so as old age has set in. It's sad because I know them and they're wonderful people, and through a series of avoidable events will have a dramatically lower standard of living in old age than they possibly could have had.

Not only did they sell the condo for much less than market, they used that to buy a failing business without proper due diligence. :(

In neither case did they reach out to family and it came as a shock to my friend and his wife.

The decline of mental faculties in the elderly is a real concern.
Yes, cognitive decline is a real and growing concern. Medical science and predator free environments have extended lifespan, but not always healthspan.
Topic Author
manatee2005
Posts: 1451
Joined: Wed Dec 18, 2019 9:17 pm

Re: Has anyone used RedfinNow?

Post by manatee2005 »

So, after the discount, the offer would be $760k. Then, another $60k for the fees. ($760k x 8%).

An $800k home would net out $700k. A $100k bite.

I guess the comparison would be to the net proceeds of that home in a "normal" transaction. If the sales commission was 6%, that would be $48k. You'd also have to consider fixing up expenses. Possibly additional mortgage payments, property taxes while the house is on the market.

Still, $100k for this price home is pretty steep.
(Sorry, I screwed up the quotes). :oops:
Redfin would still do an inspection and dock me for repairs so there’s no benefit there.

As far as the carrying costs, I would still be living in the house so it wouldn’t be an extra burden.

And yes leaving 100k of tax free money on the table, in a market where houses sell in 3-7 days with multiple offers would be crazy.
snowman
Posts: 1241
Joined: Thu Jan 31, 2013 12:59 pm

Re: Has anyone used RedfinNow?

Post by snowman »

manatee2005 wrote: Fri Oct 09, 2020 1:42 pm
So, after the discount, the offer would be $760k. Then, another $60k for the fees. ($760k x 8%).

An $800k home would net out $700k. A $100k bite.

I guess the comparison would be to the net proceeds of that home in a "normal" transaction. If the sales commission was 6%, that would be $48k. You'd also have to consider fixing up expenses. Possibly additional mortgage payments, property taxes while the house is on the market.

Still, $100k for this price home is pretty steep.
(Sorry, I screwed up the quotes). :oops:
Redfin would still do an inspection and dock me for repairs so there’s no benefit there.

As far as the carrying costs, I would still be living in the house so it wouldn’t be an extra burden.

And yes leaving 100k of tax free money on the table, in a market where houses sell in 3-7 days with multiple offers would be crazy.
So your experience with Redfin pretty much matched my experience with Zillow I posted upthread. Like I said, good business model if they can pull it off. Not sure who in their right mind would agree to those terms, unless you really need money quickly. But even then, like you said, the houses are selling so quickly these days...
michaeljc70
Posts: 7383
Joined: Thu Oct 15, 2015 3:53 pm

Re: Has anyone used RedfinNow?

Post by michaeljc70 »

snowman wrote: Fri Oct 09, 2020 5:05 pm
manatee2005 wrote: Fri Oct 09, 2020 1:42 pm
So, after the discount, the offer would be $760k. Then, another $60k for the fees. ($760k x 8%).

An $800k home would net out $700k. A $100k bite.

I guess the comparison would be to the net proceeds of that home in a "normal" transaction. If the sales commission was 6%, that would be $48k. You'd also have to consider fixing up expenses. Possibly additional mortgage payments, property taxes while the house is on the market.

Still, $100k for this price home is pretty steep.
(Sorry, I screwed up the quotes). :oops:
Redfin would still do an inspection and dock me for repairs so there’s no benefit there.

As far as the carrying costs, I would still be living in the house so it wouldn’t be an extra burden.

And yes leaving 100k of tax free money on the table, in a market where houses sell in 3-7 days with multiple offers would be crazy.
So your experience with Redfin pretty much matched my experience with Zillow I posted upthread. Like I said, good business model if they can pull it off. Not sure who in their right mind would agree to those terms, unless you really need money quickly. But even then, like you said, the houses are selling so quickly these days...
I could see this working most in an inheritance situation where the beneficiaries either all live in different states/cities or most do and the rest don't want to be bothered with anything. But, there are people that pay big bucks for convenience/laziness/lack of knowledge everywhere. When I look at grocery prices and gas prices in the city I live they can vary by up to 30% or 50% depending where you go. Someone must be paying those higher prices or the places wouldn't stay in business.
Tingting1013
Posts: 703
Joined: Mon Aug 24, 2020 5:44 pm

Re: Has anyone used RedfinNow?

Post by Tingting1013 »

Opendoor just filed their proxy statement in preparation to go public:

https://www.sec.gov/Archives/edgar/data ... .htm#tOMDA

A few takeaways:

1. The average home price for these transactions is only around $250k.

2. The average holding time is 90-110 days, which includes the time the house is off the market for cleaning and repairs.

3. Opendoor’s average contribution margin per house when all is said and done is only 0-2%.

4. They are looking to make most of their money not on the house, but on value-added services, like loan origination, title and escrow.

All in all, it’s a volume business model that works for some home sellers but not everyone. For OP’s use case (an expensive home in a hot market) it works especially poorly. But that is not the majority of markets.
User avatar
unclescrooge
Posts: 5506
Joined: Thu Jun 07, 2012 7:00 pm

Re: Has anyone used RedfinNow?

Post by unclescrooge »

Tingting1013 wrote: Sat Oct 10, 2020 10:19 am Opendoor just filed their proxy statement in preparation to go public:

https://www.sec.gov/Archives/edgar/data ... .htm#tOMDA

A few takeaways:

1. The average home price for these transactions is only around $250k.

2. The average holding time is 90-110 days, which includes the time the house is off the market for cleaning and repairs.

3. Opendoor’s average contribution margin per house when all is said and done is only 0-2%.

4. They are looking to make most of their money not on the house, but on value-added services, like loan origination, title and escrow.

All in all, it’s a volume business model that works for some home sellers but not everyone. For OP’s use case (an expensive home in a hot market) it works especially poorly. But that is not the majority of markets.
Did you hear they are also under federal investigation for misleading advertising practices?
Post Reply