Buying new and selling our home- what is better REDFIN or a full service agent? (Atlanta: for sale, real estate)

[RowanFamily]

Hi guys- What is better to use for buying a new home and selling our home as we hope to keep some equity as our Nest egg.. REDFIN or full service agent? Why so?

[AtlJan]

What is the value of the home and what sort of area is it in? Are the homes moving quickly in the area? What condition is your home in?

[AtlantaMove]

A property came up in Summerhill today during a review of recent area sales to help a client arrive at an estimate of what her home may be worth. The price of that property was aligned with other similar ones nearby that had recently sold and still went for over $20,000 above list price! All but about maybe $600 of those funds (less $1500 in closing costs) went to the seller.

I don't know about the business model of the company that the OP referenced, but some of these companies that are advertising all over TV that they will buy your property, move you and make all of those other pie-in-the-sky promises often can afford to do that because they are offering way less than the seller's home is worth. And anything that they get above list price on a sale slides right into their pockets.

The OP asked about a full service agent. We full service agents operate under the rules of the Georgia Real Estate Commission, the NAR and our brokers. That usually means that there's a clearly disclosed commission rate and anything above and beyond list is YOUR MONEY. Yours!

Not applying for a job here. This is just something to think about when the interviewing process begins. So put me in the full service agent column and take most of your equity with you when you leave.

[ATLTJL]

I think it depends on your tolerance for doing some legwork yourself.

I know I could move my house in a week just by getting a piece of poster board and painting For Sale on it in big red letters. I have absolutely no use for a listing agent, it would be easy money without them having to lift a finger.

But when the time comes to sell, I'll probably hire one anyway. Just because I don't want to do any of the paperwork involved. I might try to negotiate a slightly reduced commission with an agent who understands selling my home will be as simple as uploading it to the MLS.

[back2atl]

I'd be pretty tempted by Redfin. Aren't most buyers all using apps / websites these days? What benefits does going full service offer vs Redfin? Asking, not being sarcastic.

[magnetar]

I bought my house with Redfin. It was great because I wanted something very specific and wanted to find properties myself. And getting the $3,000 commission refund back was fantastic after closing. That said, I don't know that I'd use it to sell my house, because I think selling a home requires more work on the agent's part. I always felt like my Redfin agent knew what he was doing, but I know he had a ton of other clients.

[travbo]

Originally Posted by back2atl

I'd be pretty tempted by Redfin. Aren't most buyers all using apps / websites these days? What benefits does going full service offer vs Redfin? Asking, not being sarcastic.

The benefits of using a full service firm and a real estate agent is that they have a roster of potential buyers and/or connections with potential buyers. The good agents also usually have a better understanding of the current market on a given street/local.

I looked into multiple services for listing and buying such as Knock and Opendoor. I do believe these services and the algorithms they use are the future, however they just aren't quite there yet.

My experience with Knock vs. Actual sale using a Keller Williams Based realtor.

Knock Recommended Listing Price: $359,000
Knock Guarantee Trade-In Price: $342,000
Knock Charges Traditional 6% Commission
Best Actual Net with Recommended Listing would have been: $337,460

Keller Williams Actual Listing Price: $379,900
Actual Sold Price: $375,000
Keller Williams Based Agent Commission 5.5% (handling both buying/selling)
Actual Net: $354,375

Difference: $16,915. Going with a traditional agent put nearly 17k in our pockets.

Every scenario and property listing has unique circumstances. Each has advantages and disadvantages.

[chabang]

I intend to use Redfin when I'm ready to sell because I'm in a sellers market in a very hot neighborhood. If you think your house will sell easily, you should absolutely go with Redfin and price it correctly otherwise you are wasting money. I don't need a roster of potential buyers or connections because I know there will be huge buyer interest the second it is listed in MLS.
If you're not in a hot area and think it will be difficult to sell or to get the price you want and need a lot of hand holding to stage or get your house ready, I'd go with a regular agent.

[Atlwarrior]

How accurate are Redfin home values on the web?

[equinox63]

Originally Posted by Atlwarrior

How accurate are Redfin home values on the web?

I think its more accurate than a Zillow or the like. I know Redfin takes several factors into account such as recent sales in the area, while Zillow's records come mostly from property taxes (which were artificially low in SW Atlanta).

All I can say is that whenever homes sell in 30310, it is almost always spot on with it's Redfin estimate at the time.