Redfin Vs. Zillow In 2024: Estimates, Accuracy, & More

Remember when you had to exhaustively drive around seeking “for sale” signs when home hunting or when sellers had to rely on networking to sell a property? Those days are long gone!

Today, sites like Zillow and Redfin make property buying or selling a breeze. They offer extensive property listings and even go as far as providing home value estimates.

But while they’ve streamlined things, their emergence has brought forth a new challenge in the real estate market: identifying which is more accurate, Zillow or Redfin? If you find yourself torn between these options, you’re in good company, as this article will help you resolve the Zillow vs Redfin dilemma.

• What Is Redfin?
• What Is Zillow?
• Redfin vs. Zillow: Key Similarities
• Redfin vs. Zillow: Essential Differences To Consider
  • Accuracy
  • Pricing & Fees
  • FSBOs
  • Tools & Features
  • Coverage Area
  • Home Selling
  • Home Buying
  • Rental Listings
  • Property Listings
  • Agent Availability
  • User Privacy & Security 
• Final Thoughts: Is Redfin Better Than Zillow

What Is Redfin?

Redfin is an online-based discount real estate brokerage headquartered in Seattle. The company leverages technology to streamline the home buying and selling process and is most popular for its affordable listing fees and rich property listing database.

Redfin opened its doors in 2004 following a launch by David Eraker, David Selinger, and Michael Dougherty. The trio hoped to disrupt the real estate industry by streamlining access to quality services. Today, Redfin operates in about 100 markets across the US and Canada. Unlike traditional brokerages, it has about 2,000 lead agents on its payroll who assist property buyers and sellers in navigating real estate processes.

Beyond brokerage services, Redfin offers mortgage origination, title insurance, concierge, rentals, and renovation services. Note that there’s a Redfin app, too. The brokerage also went public in an initial public offering that saw it raise $138 million. Redfin is currently under CEO Glen Kelman, who reportedly holds over 1.3 million shares of Redfin’s stock.

In essence, Redfin is a tech-powered brokerage that offers property sellers affordable listing services and exposure while buyers often get access to a rich database of properties.

• Services Offered: Redfin provides a broad spectrum of services, from buying and selling to renting properties. Its signature offering is the Redfin Estimate, a tool for property valuation.
• Unique Features: One of Redfin's standout features is its 1% listing fee, significantly lower than traditional brokerages. Plus, its website offers an interactive map search and comprehensive market data.

What Is Zillow?

Zillow is a leading real estate and rental marketplace. Note it’s not a brokerage but a marketplace designed to connect buyers, sellers, and even renters with real estate agents, property managers, and other real estate professionals. The platform features a property database with approximately 110 million properties and offers a search function and premier filters for users to browse through its listings seamlessly.

Zillow is a subsidiary of the Zillow Group Inc. brand, which also owns a dozen other equally popular real estate brands, including Trulia, RealEstate.com, and StreetEasy. Besides the web version, Zillow has a mobile app that is only available to US users.

• Range of Services: Zillow’s services extend beyond property listings. It includes Zillow Offers, a feature for instant selling, and various tools for market analysis.
• Distinctive Attributes: Zillow's Zestimate, an automated valuation model, is widely recognized. Its vast database and user-friendly interface have made it a go-to resource for many.

Redfin vs. Zillow: Key Similarities

Although Redfin and Zillow operate on two entirely different models, they share some similarities. These include:

• Listing database: Both real estate companies have databases with search functions and filters that buyers and sellers can use to browse through property listings. Both platforms utilize IDX to pull real estate listings from the multiple listing service.
• An Online-Based Property Buying Process: Zillow and Redfin feature a listing database, making it possible for home buyers to browse homes online. Property buyers can schedule online home tours making the home-buying process even more convenient.
• CMA: Redfin uses a proprietary algorithm to generate home value estimates that property buyers or sellers can use to work out the CMA. Zillow offers the Zestimate, which it claims has a 1.9% error rate for on-market homes.
• Agents: Although they have a distinct approach to working with agents, Redfin and Zillow help connect property buyers and sellers to licensed agents.
• Additional services: Beyond buying and selling, Redfin and Zillow offer similar additional services. For instance, both platforms support rental services, mortgage origination services, and advertising offerings for real estate professionals. Redfin also previously offered iBuyer services.
• Mobile apps: Both platforms offer a mobile app further streamlining access to on-market homes.

Redfin vs. Zillow: Essential Differences To Consider

Redfin and Zillow may share some similarities, but they’re entirely different in their approach to delivering seamless real estate experiences.

We’ve listed the differences, followed by a detailed discussion of the various facets they’re different in below:

Is Redfin or Zillow More Accurate?

Whether you’re an active wholesaler or a passive real estate investor, property pricing influences your profit margin and how quickly you sell, making property valuation an incredibly important step of the sale process. This brings us to the zestimate vs redfin estimate factor.

Redfin and Zillow offer a built-in home value tool that users can maximize to assess a property’s potential market value. Besides the built-in tool, both platforms often generate and include an estimate and comparable homes for each property listing in their databases.

Regarding Zestimate vs Redfin Estimates, Redfin has a median error rate of 2.09% for on-market homes and a 6.45% accuracy for off-market homes. Additionally, Redfin’s algorithms update on-market property estimates daily and weekly for off-market properties.

A Zillow estimate has a 2.4% median error rate for on-market properties and a 7.5% error margin on off-market estimates. Unfortunately, Zillow doesn’t update its Zestimates as frequently as Redfin making its competitor’s estimates more accurate.

However, as you may have noted, neither of the real estate platforms claims 100% home valuation accuracy. Their algorithms often rely on publicly available data, such as property square footage and neighborhood data, to generate estimates. They don’t account for a property’s value-altering factors like recent renovations. Therefore, you cannot use their estimates as a substitute for a professional appraisal.

Read Also: How To Find Off-Market Properties: The 10 Best Ways

Pricing & Fees

Understanding the fee structure of Redfin and Zillow is crucial for those looking to buy or sell properties using these platforms. Redfin offers lower commission rates that can be more attractive for sellers, while Zillow provides free listing options with additional charges for premium services.

Here is a brief overview of Redfin and Zillow cost structures:

Redfin's Pricing & Fees

Redfin's real estate commissions charge a listing fee that is typically 1.5% of the sale price of the home. This rate is significantly lower compared to traditional real estate agents who usually charge around 2.5% to 3% as a listing fee. Redfin's approach to pricing is part of its mission to make real estate more consumer-friendly by offering full-service real estate at a lower cost.

However, it's important to note that this 1.5% fee might not be the only cost. Sellers are generally also responsible for paying the buyer's agent commission, which usually ranges from 2% to 3%. Therefore, the total commission costs when selling with Redfin could range from 3.5% to 4.5%, which is still lower than the traditional total of around 5% to 6% when both buyer's and seller's agents are involved.

Zillow's Pricing & Fees

Zillow is primarily a listing aggregator platform and doesn’t charge a listing fee. Zillow allows users to list their properties for free, whether selling as for sale by owner (FSBO) or with a real estate agent. This free listing is a significant advantage for sellers looking to maximize their exposure without incurring upfront costs.

However, Zillow does charge a one-time fee of $29.99 for premium rental listings, which offers increased visibility compared to standard listings.

For FSBO listings, it's worth noting that Zillow segregates these from agent-represented homes in search results. This could mean less visibility for FSBO listings, as they are not mixed with MLS-listed properties, which are typically represented by agents.

While listing with Zillow is free, it's important to remember that if you sell with an agent, you will still need to pay the realtor's commission, which is separate from any Zillow fees. The average total real estate commission is around 5.37%, with listing agents earning an average of 2.72%.

For Sale By Owner (FSBO)

While there are many perks to enlisting the services of a real estate agent or realtor in selling a property, embracing the For Sale By Owner (FSBO approach allows investors to skip the 6% agent commission, resulting in more profits.

What does this have to do with the Redfin vs Zillow dilemma? Zillow is the better option for experienced wholesalers or house flippers looking to sell investment properties independently. The platform is FSBO-friendly and free, meaning even an average property owner can create a property listing at no cost.

Additionally, users can customize their listings with unlimited photos, videos, and even 3D imaging to attract more buyers. However, Zillow’s FSBO listings are only displayed under the “By Owner & Others” filter, which reduces exposure because if a potential buyer doesn’t specifically search for them, they won’t find them on the main dashboard.

Still, Zillow remains more FSBO-friendly than Redfin, which only allows FSBO listings if first uploaded to one of its two partner sites, FSBO-com or Fizber, which charge a listing fee. But even then, Redfin FSBO listings often need more essential information such as open house days and times, property status changes, and unit numbers, making Zillow the more favorable option.

Tools & Features

Beyond their listing services and built-in home value estimators, Redfin and Zillow offer additional tools and features to enhance every user's success.

Both platforms include built-in mortgage calculators, allowing even the average Joe to work out the math for real estate mortgages effortlessly. Talking of mortgages, note that both Zillow and Redfin offer mortgage loan lending services to real estate investors. Zillow offers mortgages through the Zillow Home Loans program, while Redfin offers home loans through its affiliate, Bay Equity Home Loans.

In addition to a mortgage calculator, Zillow features an affordability calculator for home buyers to estimate their affordable house range. The platform also recently introduced a multi-location search function that allows users to simultaneously search properties in up to five locations.

Want to share a listing with your wholesaling partner? Zillow lets you add a shopping partner to your account, greatly streamlining sharing. You can also add custom tags to your favorite listings. Additional notable features on Zillow include the homes-to-compare function for saving and comparing listings side by side, auto-complete and guided searches, and a map-based search feature.

On the other hand, Redfin Redesign recently rolled out an AI-powered tool that allows users to modify the appearance of key property features, such as floors and walls in home photos. This feature, available for all active listings, allows buyers to visualize how a property would look if they were to redesign it based on their preferences.

Redfin also has a slew of tools beneficial for real estate agents and investors, such as:

•  Redfin Fast Offers: Automates the process of underwriting sale offers
•  Owner dashboard: Features real-time information regarding a seller’s listing activities
•  Customer calendar: Users can set and view all upcoming client appointments and deal milestones

Simply put, Redfin and Zillow offer a decent set of additional features that greatly enhance the property buying or selling experience.

Read Also: Zillow Premier Agent Review

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Coverage Area

Whether you want to wholesale properties in a bustling metropolis like California or prefer to rehab homes in a remote location, Zillow is an excellent choice for your listings. Zillow Group, its parent company, partners with 570 plus MLS, allowing Zillow up to 95% of the US’s listing coverage. In other words, Zillow features listings from all 50 states.

In contrast, Redfin operates in approximately 100 markets. While this implies some markets may be excluded, a notable advantage is that the company also operates in Canadian markets. This makes it a suitable option for real estate investors looking to diversify across borders.

Home Selling

Torn about selling your home on Redfin vs Zillow? As a discount brokerage, Redfin requires sellers to pay their agents only a 1%-1.5% listing fee plus the standard 3% buyer agent fee. This brings the total costs of selling a property on Redfin to about 4-4.5%, much cheaper than the industry’s 5-6% average.

Additionally, with services like title processing, the platform makes it possible to conduct the entire home buying and selling process online.

Zillow offers no seller discounts or a buyer rebate, meaning investors who list with Zillow must subtract the 5-6% agent commissions from the sale price. Additionally, Zillow doesn’t support real estate transactions because it's just a listing aggregator.

The upside is that Zillow offers more listing exposure than Redfin. But ultimately, selling on Redfin is seamless and more affordable.

Home Buying

Redfin vs Zillow both have upsides and downsides where home buying is the goal. Purchasing a property with Redfin is easier because the brokerage boasts a team of salaried real estate agents. Being on payroll, these agents are more committed to assisting buyers navigate the process.

Redfin also stands out for frequent listing updates. This ensures home buyers access to the most recent and accurate listings. However, the downside is that Redfin has fewer listings than Zillow, potentially leading to increased buyer competition and higher home prices.

Zillow offers more listing coverage, with over 140 million listings in its database, including FSBO properties. This vast selection presents buyers with more options than on Redfin. The downside is that Zillow doesn’t frequently update its databases, increasing the likelihood of encountering under-contract or expired listings.

Rental Listings

Zillow has been supporting rental listings since its inception in 2006. Initially, users would pay for the service. Now, it’s free, meaning any landlord or property manager looking to attract quality renters can simply upload their rental listings to the website. However, Zillow does offer a rental manager package for $29.99 for three months. It includes access to services like tenant screening and online rent collection.

Redfin also supports rental listings, but that wasn’t always the case. The brokerage introduced the service in 2022, and users have to list through Rent.com before their rental listings are displayed on Redfin.

Property Listings

In our comparison of Redfin vs Zillow, the latter takes the lead in terms of listings. Zillow has access to MLSs in all 50 states, allowing it to access significantly more property listings.

Zillow reportedly has 135 million property listings and is the largest real estate website in the US, usually averaging 60 million monthly visitors. Redfin has approximately 1.3 million listings, but a notable advantage is that it updates them quite frequently.

Agent Availability

Zillow vs Redfin offers agent access but uses a different approach. Zillow, as a listing aggregator, serves as an intermediary between homeowners and real estate professionals and, as such, doesn’t have its agents.

Instead, it offers a real estate agent directory that property buyers or sellers can tap into when they need agent services. The directory has a search button and filters like service and price range, enabling users to search for their ideal agent quickly.

As a brokerage, Redfin has the privilege of hiring its agents. The company does leverage this privilege because it has about 2000 lead agents on its payroll. As a result, Redfin agents tend to be more available and hands-on than Zillow’s agents.

In addition to lead agents, Redfin has independent partner agents who get referrals from Redfin and, in exchange, pay a commission. Redfin’s partner agents are a good option when you need local agents or more support than Redfin’s team can offer.

User Privacy & Data Security

When it comes to user privacy and data security, both Redfin and Zillow have comprehensive policies, but they differ in certain aspects.  While both Redfin and Zillow are committed to user privacy and data security, they have distinct approaches to collecting, using, and sharing personal information.

Users should be aware of these differences to make informed decisions when using these platforms:

Zillow's Privacy & Data Security

Zillow Group collects a variety of personal information from its users, including contact details, customer service and communication history, feedback information, location data, payment information, and more.

Users who enable location services on their mobile devices allow Zillow to collect device locations for providing location-based information and ads. Zillow also uses cookies, pixel tags, and other tracking technologies to gather data about how users view and use their services.

Information sharing at Zillow occurs with partners and service providers to facilitate real estate transactions and provide relevant ads. For instance, Zillow shares details with real estate experts, advertising partners, and service providers like Experian for credit checks during rental applications.

Additionally, they collect and use data to improve their services and tailor user experiences, such as personalizing services and showing relevant ads and content.

Redfin's Privacy & Data Security

Redfin retains the personal information it collects as long as necessary to fulfill various purposes like providing services, resolving disputes, conducting audits, and complying with laws. They may deidentify personal information rather than delete it.

Redfin uses and discloses personal information for operating its sites, managing accounts, responding to inquiries, promotional activities, detecting security incidents, and other business purposes. They disclose personal information to third parties for these purposes as well.

Redfin's policy states that they do not sell personal information for monetary consideration. However, their sharing of information with ad companies, analytics providers, and social networks for advertising and content purposes may be considered as "selling" or "sharing" under certain privacy laws.

The categories of personal information that may be shared include identifiers, internet or other electronic network activity information, geolocation information, and inferences.

Both platforms provide users with rights and choices regarding their personal information. For example, Redfin users in California have specific rights under the CCPA, like the right to know/access, correct, delete, and opt-out of sales and sharing of their personal information.

Redfin vs. Zillow: Frequently Asked Questions

How do Redfin and Zillow's commission fees compare?

Redfin typically charges a lower listing fee of around 1.5%, whereas Zillow offers free property listings but earns through advertising and premium services. Note that total commission costs with Redfin, including the buyer's agent commission, might still be lower than traditional rates.

Can I list my property on both Redfin and Zillow?

Yes, you can list your property on both Redfin and Zillow, maximizing exposure across different platforms to reach a wider audience.

How accurate are the home valuations from Redfin and Zillow?

Both Redfin and Zillow offer home valuation tools (Redfin Estimate and Zestimate, respectively), but their accuracy can vary based on the availability of data and market conditions. They are best used as a starting point for understanding property values.

Which platform is better for first-time homebuyers?

Both platforms offer valuable tools for first-time homebuyers; however, Redfin's lower commission rates and full-service approach might be more financially advantageous, while Zillow's extensive property listings and user-friendly interface provide a broad market view.

Are there any privacy concerns with using these platforms?

Both Redfin and Zillow adhere to strict privacy policies, but they do collect and use personal information differently. Users should review each platform's privacy policy for details on data collection, usage, and sharing.

How do Redfin and Zillow make money?

Redfin makes money primarily through its reduced commission fees for real estate services, while Zillow generates revenue through advertising, premium services, and its Zillow Offers program.

Final Thoughts: Is Redfin Better Than Zillow?

After exploring their similarities and differences, we finally answer the ultimate question: is Redfin better than Zillow? To some extent, it is. First, Redfin frequently updates its database and estimates, making it more accurate than Zillow. Redfin is also notable for lower agent fees. The brokerage also employs its agents and collaborates with partner agents resulting in better agent availability and customer support.

Zillow has a richer property listing database and records more site visits as one of the largest real estate marketplaces, providing more exposure for seller listings. Moreover, Zillow’s agent directory features real estate agents from all 50 states, allowing home buyers or sellers to quickly find local agents regardless of location. Moreover, Zillow supports FSBOs and offers better rental listing services than Zillow.

So, which is better? Ultimately, if you’re willing to overlook the limited coverage and exposure, Redfin offers affordability, more accuracy, and better agent support than Zillow. This makes it the better option for real estate investors and home sellers. However, Zillow is better if you want to list a property yourself or market your rental. In essence, it all comes down to your real estate needs.

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