Redfin vs Zillow vs Houzeo: Choose The Best in 2023!

✏️ Editor’s Note: Realtor Associations, agents, and MLS’ have started implementing changes related to the NAR’s $418 million settlement. While home-sellers will likely save thousands in commission, compliance and litigation risks have significantly increased for sellers throughout the nation. Learn how NAR’s settlement affects home sellers.

They’re popular, and they’re the big guns, but is Zillow worth the hype? Is Redfin reliable? Is Houzeo legit? Does Houzeo stand out as the digital leader? Let’s find out in Redfin vs Zillow vs Houzeo?

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Redfin vs Zillow vs Houzeo Overview

Redfin

What is Redfin? 

Redfin is one of the best low-commission real estate companies and home-buying tools that are available in the market. Accessible in over 80 markets, they are well-known for their cheap services, which may save you hundreds of dollars. To ensure maximum savings, Redfin also offers buyer refunds at closing.

Redfin home values are accurate and up-to-date because it is linked to the powerful MLS. They also offer Redfin estimates to help you price your home more effectively.

One of the most significant disadvantages of redfin vs Zillow and Houzeo is that it does not allow sellers to submit FSBO listings and does not display listings if you live outside of the redfin service area.

If you want to sell house for cash, you can always pick their iBuying division Redfin Now, for quick selling cash transactions.

» FSBO Websites: Check out our rankings of the best For Sale By Owner Websites in America.

💰  Redfin Pricing For Sellers

Redfin may offer a 1% listing charge, however, the standard is usually 1.5 %. The 1% applies solely to people who sell and buy from them within a year. Redfin’s discounted listing fees are also subject to a minimum fee that varies by state and ranges from $3000 to $7000. If you have a low-cost home, you should look into different discount real estate brokers and companies in your neighborhood.

Service	Fee
Selling with Redfin	1.5%
Buyer’s Agent Commission	2.5% – 3%
Total	4% – 4.5%

Redfin Agents

A Redfin Agent is a licensed local agent that guides you through the home selling and buying process. They mainly act as guides who represent you in negotiations and throughout the entire closing process. Unlike a traditional real estate agent who depends on the percentage per sale, a Redfin agent gets paid otherwise even if the house is sold below the market value.

Although we can’t be certain, a considerable amount of incentive has been taken away from Redfin’s agent compensation. And this can have an impact on the agent’s performance or devotion to selling the home.

There are also several reviews and reports about their agent’s services. This is possibly owing to their high client traffic and the fact that the majority of their employees have multiple projects at once.

Because of Redfin’s business model, Redfin agents deal with three times as many customers as traditional realtors, which means you’re competing with three times as many consumers for your agent’s time and attention. Lack of individualized support during critical stages of the transaction can stymie the sale.

» Redfin Reviews: The Reality of 1% Fees, Pros & Alternatives

Zillow

What is Zillow?

It offers a whole range of services, including buying, selling, financing, renting, and everything in between. It’s a great alternative for a for-sale-by-owner listing because it saves you a lot of money on realtor costs.

The MLS database is directly linked to the majority of the listings, making it one of the most comprehensive databases on its own! It expects to sell over 22,000 homes by 2022, covering over 90% of the whole US market.

Although you can list directly on Zillow, their main disadvantage is that they mostly show listings that were created through an agent on their default section.

» Zillow Reviews: Listing Your Home on Zillow For Sale By Owner.

💰  Zillow Pricing For Sellers

As you may know, Zillow offers a free FSBO listing with listing updates. However not all its services and features are free. This free listing also has limited visibility and does not show up on the default page. You will also be competing with listings made by traditional experienced agents.

Service	Fee
Selling with Zillow	3%
Buyer’s Agent Commission	3%
Transfer and Property Taxes, Attorney Fees	2-4%
Total	8 – 10%

» What’s My Home’s Value: You can know your home’s market value with Houzeo’s free Home Worth Estimator. It helps you estimate the amount you will get upon sale.

Zillow Agents

Whether you want to rent, sell, or buy, Zillow connects you to agents including a range of experienced professionals from real estate agents, property managers, and home inspectors, among others. You can also directly connect with a local agent or broker who helps you throughout the process.

One of the main attractions of Zillow is its free FSBO listing. Since selling yourself can get a lot harder than anticipated, Real estate brokers see FSBO listings as a fantastic potential source of new clients. Many realtors make cold calls to FSBO owners regularly, hoping to find out why their home hasn’t sold and that they’re ready to employ an agency.

As a result, while your for-sale-by-owner listing may not receive as much attention from buyers, you’ll almost certainly receive a slew of unwanted phone calls from Zillow agents, as some Zillow reviewers have noted. Additionally, Zillow has no control over the quality of agents. Their matching service is random with a possibility of receiving bad agents that don’t offer discounts.

Zillow Agents are also notorious for dual agency real estate transactions. Consumer advocates have long cautioned against dual agency in real estate transactions. That’s when the real-estate agent advocating for the seller also represents the buyer. As a result of advertising on Zillow, a large percentage of sellers saw an increase in dual-agency transactions.

Houzeo

What is Houzeo?

Houzeo is an advanced tech platform that allows home sellers to list their homes on the MLS for a small flat fee, working with a listing agent who doesn’t typically charge a commission. This saves you almost 50% of the agent commissions right away. Home sellers, after registering, get access to an exclusive seller dashboard where they can receive, review, and compare offers.

The platform also allows features like contract updates, counteroffers, home showings, lockboxes, yard signs, and more.  You can customize the packages as per your requirements and even opt for services like contract review, pricing assistance, professional photography, and more as per the requirement. Being 100% online, the listing is easy and changes are fast. So you can focus on what is most important – your sales.

When you register with Houzeo, you’ll be given access to a private seller dashboard where you may finish the listing process. You can create property descriptions, upload documents, interact with the customer support team if you have any questions, and much more. When you enter your PIN, Houzeo’s IntelliList Management System automatically curates most of the listing information, saving you time when filling up your listing details. Once your item is live, you can sell it directly from your dashboard to your social media profiles, gaining immediate non-MLS exposure and increasing your chances of finding an unrepresented buyer.

💰  Houzeo Pricing

Most popular For Sale By Owner websites, such as Zillow, claim to be free, but they aren’t. They pass your leads on to local agents, who will contact you and waste your time. Houzeo does not sell your contact information. There are no hidden fees and you only pay a single flat fee as your listing. If the buyer is unrepresented, you will not have to pay buyer agent commission either.

Assuming your property is valued at $500,000.

Service	Fee
Selling with Houzeo	$199 – $999
Buyer’s Agent Commission	2.5% – 3% ($15000)
Total	$15199-$15999

Houzeo Agents

Houzeo Agents are cutting-edge tech professionals with decades of experience in the real estate buying and selling process. They save you thousands of dollars in commissions. You have the choice of customizing the services you desire from them or opting for the full-service package for the most help.

These flat-fee packages include the agent’s listing fee, but not the buyer’s agent commission if the buyer is unrepresented. That being said, you will save $15,000 regardless of the plan you choose.

This allows house sellers to not only save money straight away but also to customize their packages and keep track of their expenses by selecting the services they need. Federal and state disclosures, unrestricted listing updates, contract reviews, agent showings, and assistance with appraisals and inspections are just a few of the services available.

The partner brokers provide these additional features virtually and are compensated for providing excellent services with individual support and hands-on attention through service-based incentives.

💲 Redfin vs Zillow Estimate

Redfin Home Value Estimator

The Redfin estimate is a precise calculation of your home’s estimated value. Even though Redfin claims to have the highest accuracy, on-market properties have a median error rate of 2.20% percent and 6.86% median error for off-market homes. These errors differ state-wise. They use data from listings and recently sold properties to calculate a fairly accurate house estimate using MLS syndication. This is quite beneficial when it comes to determining the value of your home.

📝 NOTE: Redfin makes it clear to the seller that the estimate is only intended to give them an idea and should not be used to replace the services of a full-service agent or their calculated judgment. Is Redfin’s estimation correct? Both yes and no. They are a good starting point before a house evaluation, but in terms of figures, the estimate will be hundreds of dollars off.

Is Redfin Estimate Accurate?

As stated above, Redfin Home value estimates are a lot more accurate for on-market homes because of the updated relevant realtor information. This helps the overall estimate and allows Redfin to better guess your price according to location.

Let’s have a look at an example. According to the Redfin Estimate page, Florida has a median error of 2.20% on-market and 8.08% off-market as mentioned on Redfin. Now if your property value is $445,000 then,

This is a rather large gap with an off-market gap of over $80,000!

Since Redfin estimates the home value according to median error, there is still a big chance your actual value will be way outside the range.

Zillow Home Value Estimator

Zestimate is the most popular feature on Zillow. It is a pre-programmed house valuation tool that provides you with an instant market value for your property. It collects data from MLS, on-market, off-market, and public and user information using a simple algorithm. For optimal accuracy, it also incorporates account home statistics, market trends, location, and detailed home information.

The home value data varies depending on your property area, with data for off-market homes can be far off from its genuine value. Zillow claims to be less than 100 percent accurate, but only by a margin of 80 percent. These are influenced by elements such as architecture, heat source, amenities, and so on, which change the value of your home regularly.

📝 NOTE: Zillow has a median error of 1.9 percent for on-market listings and 6.9 percent for off-market listings. That’s a lot of money on the line. Zestimate can only be as accurate as of the data it collects.

Is Zillow Estimate Accurate?

Zillow’s estimate incorporates data from over 110 million homes and uses machine learning models to come up with your closest home value. Tax accessions and seasonal fluctuations also greatly affect your Zestimate.

To put things into perspective let’s break it down depending on your property value. According to the Zestimate evaluation page, Boston has a median error of 2,6% for on-market listings and 6.4% for off-market ones. For a property valued at $765,000 then,

Why Are Redfin and Zillow Estimates So Different?

Most house sellers utilize both Redfin and Zillow to determine the value of their homes. They each have different estimates since they calculate them using different techniques. If the disparity is significant, they are misled about your property. You can always change the information you’ve supplied and improve the facts section in this case.

Both rely primarily on MLS data and user information. They have their own set of tools, which may or may not be comprehensive. Before you go to your agent for a CMA, these figures should only be used as a starting point. For example, both Redfin and Zillow will take your home’s square footage into account, but they will be unable to account for its condition, associated problems, traffic in the area, any interior alterations, and so on. This is when the technical assessment of an agent comes into play.

So, is the Redfin or Zillow estimate more accurate? Zillow. By a razor-thin margin. In comparison to Redfin, Zillow has a larger control group to analyze and acquire data from, with over 110 million properties worth of data. This enables them to arrive at a more precise estimation value.

⛔ NOTE: Do not base your listing price on Redfin and Zillow estimates. With a 2% error margin, you’ll end up underpricing or overpricing your home making it tough to sell. Use them just as a substitute. Houzeo’s closing cost calculator, on the other hand, breaks down everything from taxes to doc stamps to commissions on both the buyer and seller sides to give you a comprehensive list.

💲 Houzeo Closing Cost Calculator

Houzeo Estimate

Although Houzeo doesn’t provide you with Home value estimates, it goes a step further with its closing cost calculator for both buyers and sellers. The calculator estimates your closing costs bifurcated statewise. Technologically advanced, it offers a detailed itemized list of costs that includes state, city, and county-assessed taxes to give you an accurate estimate. The estimate is reviewed as per the listings and informs you of unusual costs as well!

📝 NOTE: The Houzeo Closing Dashboard is the most advanced dashboard in the consumer real estate industry. It shows you your projected cash proceeds after expenses within a day. The dashboard also explains how we calculated these prices and gives you the option to change them. For you, this means greater openness and fewer surprises at the closing table.

Let’s take an example for a $700,000 property based in Florida and break it down for seller and buyer closing costs.

For Sellers

This category contains a detailed breakdown of the costs associated with obtaining your taxes, fees, and prepaid costs, as well as any extra fees.

For Buyers

This category gives you a complete breakdown of the costs associated with securing a mortgage. It only applies to home buyers who use a mortgage to finance their purchases. It does not apply to home sellers.

What are the closing costs in your state?

Find them below:

Region	States
Northeast	Maine, Massachusetts, New Jersey, Pennsylvania
Midwest	Illinois, Indiana, Michigan, Minnesota, Missouri, North Dakota, Wisconsin
South	Alabama, Florida, Kentucky, North Carolina, South Carolina, Texas, Virginia
West	Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, Washington, Wyoming

Redfin vs Zillow vs Houzeo: Selling and Buying

All three companies have their perks when it comes to buying and selling your home. Let’s study them a bit further:

Redfin vs Zillow vs Houzeo: Best for Home Sellers

🥇 Houzeo – Best for Home Sellers

👉 Our Take: Houzeo.com is our top pick for sellers because it delivers an unbeatable combination of savings, tech features, and service of any other website we’ve reviewed. In addition to saving on commissions, you get to use Houzeo’s state-of-the-art technology to make counteroffers and access Houzeo Showings, their showing management App. If you ever need help, Houzeo gives you 5-star customer service – via chat, email, and phone.

💸 Redfin – Discount Real Estate Broker

👉 Our Take: If you’re looking for a full-service discount broker with personalized assistance and low commissions, go with redfin. Their simple user interface coupled with in-house agents make it a good option for first-time sellers. According to several Redfin reviews, they are not the best choice because of their poor customer service and delayed listing process.

💻 Zillow – Excellent exposure

👉 Our Take: Zillow is the largest player in the real estate market. It provides maximum exposure to sellers, but it is not the ideal alternative for them. Sellers will have no involvement in the process because there will be no exposure for free FSBO listings and all buyer agent leads given to member agents directly.

Redfin vs Zillow vs Houzeo: Best for Home Buyers

🥇 Redfin – Simplified Buying Process

Redfin has multiple tools and offers at your disposal if you buy with Redfin Agent which you may access through the Redfin Marketplace.

🎯 Key Takeaways

• Redfin Rebates: If you work with a Redfin agent to buy or sell a home, they are required to share a portion of their commission with you. Your closing fees are factored into this. The reimbursement will be visible on the house detail page.
• With the Redfin.com browsing page, narrow down your search. You can additionally save your searches and use pre-set filters to save time.
• Use Redfin Estimate to compare initial offers to ensure consistency.

» Low Commission Real Estate Agents: We’ve ranked the top reduced commission brokers in the US.

🥈 Zillow – Largest Marketplace for Buyers

Over 95 percent of buyers look for homes online, and Zillow is one of the top platforms for doing so. Because it is a large marketplace with free listings, you will have a plethora of choices based on your location and preferences.

🎯 Key Takeaways

• Save your searches according to your filters to save time.
• With Zillow Homes, you can view 3-D tours and schedule tours at your leisure.
• Zillow offers a variety of additional services for your convenience. Zillow 3D properties, home loans, and Zillow closing services are examples.

>>> LIST YOUR HOME WITH HOUZEO <<<

🥉Houzeo – Useful Filters for FSBO houses

Buying an FSBO can be a challenging process since there are many key factors involved and no listing agent This is where Houzeo makes it easier:

🎯 Key Takeaways

• Start filtering your search by city and narrow down your search by choosing the property type, whether it’s a For Sale, Sale Pending, or Sold (with corresponding color coding)
• Customize it further with a specific search based on Max HOA, tours, square feet, lot size, year built, basement, no. of stories, days, etc.
• You can also find what kind of home type you’re looking for: single-family, multifamily, townhouses, condos, co-ops, lands/lot, mobile, others.

👉 Find and Buy Homes For Sale by Owner: 8 Steps to look and purchase the right property

Redfin vs Zillow vs Houzeo: How They Make Money

Redfin Revenue Streams

Redfin is a discount brokerage that uses a hybrid real estate system to conduct transactions. They close, sell, and buy deals using a combination of technology and manpower. This approach is comparable to the traditional agent system, in which both vendors and buyers pay lower commissions.

Redfin’s revenue sources are divided into two categories: service and product. These sections are broken down further into subcategories. Take a look at a few examples:

Zillow Revenue Streams

Zillow Group reported annual revenue of 3.3 billion in 2020 alone. But if their FSBO listings are free, how do they make money? With 36 million users monthly, Zillow acts as the perfect marketplace to sell products and generate ad sales on both the website and the app.

Their revenue stream can be divided into three sections: Buyers, Rentals, and Sellers.

Redfin vs Zillow vs Houzeo: Which is Best?

All of these sites, Redfin, Zillow, and Houzeo, provide fantastic features for both sellers and buyers. They aren’t a one-size-fits-all approach. The best overall discount real estate company and MLS listing website is Houzeo, however, Zillow is the best for buying with the most listings to choose from. When it comes to selling, Redfin provides low commissions if you work with one of its agents.

At the end of the day, Houzeo wins for Seling and Zillow wins for Buying.

 

Frequently Asked Questions

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