Redfin Vs. Keller Williams: How The Real Estate Giants Compare

When selling a home or making a major real estate purchase, picking the right brokerage to work with makes all the difference. Technology-focused Redfin and growth-oriented Keller Williams are two of the biggest real estate brands.

But how do these industry giants stack up when it comes to listings, agents, fees, and services? Let’s compare the key differences between Redfin and Keller Williams.

A Brief Comparison Table

CategoryRedfinKeller Williams
Business ModelLocal agents + digital toolsFranchised offices
Geographic Coverage90+ metro areasThousands of markets globally
Listings DatabaseRobust search portalAccess via Marketplace portal
Home ToursSelf-scheduling + agent toursAgent-led tours
Commissions1-1.5% totalVaries by agent, caps around 2.5-3%
Buyer Incentives1.5% refundNo cash back
Agent ModelEmployeesIndependent contractors
Profit SharingNoYes, with associates

Overview of Redfin

Founded in 2004, Redfin combines digital real estate tools with local agent services and support. Redfin serves over 90 metro areas in the U.S. and Canada.

Redfin App
Redfin App

Some standout features from Redfin include:

  • Search millions of up-to-date home listings
  • Book home tours instantly online 24/7
  • Make an offer with help from Redfin agents
  • Track offer status and get regular updates
  • Cash back for buyers, up to 1.5% of home price
  • Local insights like school reports and crime rates
  • Redfin Estimate for home valuation
  • Available in most major metro areas
  • Rental listings available in some markets

For buyers and sellers, Redfin aims to deliver a modern real estate experience marrying online convenience with dedicated agent assistance when needed. Redfin charges lower total commissions than traditional brokerages.

Overview of Keller Williams

Keller Williams operates franchised offices across the U.S., Canada, and worldwide. It is the largest real estate franchise by agent count with over 200,000 associates.

Some notable features from Keller Williams Realty include:

  • The largest real estate franchise globally
  • Agent-centric model focused on recruitment
  • Robust training programs for new agents
  • Team models encourage collaboration
  • Unique profit sharing model with associates
  • Access to nationwide home listings database
  • Cloud-based productivity tools and software
  • Consumer app with listing search

Known for their agent-first approach, Keller Williams empowers its associates through education and profit sharing. Their tech tools also enable agents to collaborate and run their businesses more efficiently.

Also Read: Comparison Between Redfin And eXp Realty

Key Differences Between Redfin And Keller Williams

Till now we have covered the basics about them. Now, let’s dive deeper into the key differences between them:

1. Comparing Listing Databases

The scope of each brokerage’s home listings is an important difference. Here is how Redfin and Keller Williams compare:

  • Redfin listings – Over 2 million residential listings across the U.S. and Canada. Concentrated in urban metro areas where Redfin operates.
  • Keller Williams listings – Access to listings nationwide across the U.S. and globally. Listings concentrated in regions with Keller Williams franchise offices.
  • Search platforms – Redfin has a more advanced search portal for consumers. Keller Williams Marketplace caters more to agents.
  • Market coverage – Redfin focuses on major metros. Keller Williams has presence in more mid-sized and rural markets.
  • Updates – Redfin listings update in real-time. Keller Williams listings lag slightly.

While both have extensive reach, Redfin edges out for its robust, highly functional search platform for finding and filtering homes.

2. Comparing Real Estate Agents

Redfin and Keller Williams take very different approaches when it comes to real estate agents:

Killer Williams
Killer Williams
  • Redfin agents – Salaried employees who specialize in metro areas. Redfin handles hiring and oversight centrally.
  • Keller Williams agents – Independent contractors who affiliate with local franchise offices. Agents get training but set their own business models.
  • Teams – Keller Williams encourages team models for lead sharing and collaboration. Redfin agents work more independently.
  • Leads and referrals – Keller Williams provides lead-gen tools and seminars to agents. Redfin routes leads to local agents directly.
  • Commissions – Keller Williams commissions are set by individual agents. Redfin charges lower commissions overall.

Keller Williams promotes entrepreneurship and collaboration for agents, while Redfin maintains control over hiring and management.

3. Redfin Vs. Keller Williams Fees and Commissions

Pricing is another major area where the brokerages differ:

  • Redfin seller commissions – Charge 1% – 1.5% total commission. Lower than traditional brokers.
  • Keller Williams commissions – Varies by agent. Caps at 2.5% – 3% for most markets.
  • Redfin buyer refunds – Buyers get up to 1.5% of the purchase price back at closing.
  • Keller Williams incentives – No buyer cash incentives. Focus is on seller side commissions.
  • Agent costs – Redfin agents are employees. Keller Williams agents pay a monthly fee to their local franchise.
  • Profit sharing – Keller Williams offers profit sharing bonuses to associates based on market center revenue.

Redfin discounts both seller commissions and buyer costs, while Keller Williams incentivizes agents through variable pay and profit sharing opportunities.

Watch this review video:

Pros And Cons Of Redfin And Keller Williams

Pros of Working With Redfin

Some of the major perks of using Redfin include:

  • Intuitive online search with real-time home listings
  • Instantly book home tours and unlock doors through the app
  • Local Redfin agents provide personalized guidance
  • Lower seller commissions compared to traditional brokers
  • Cash back for buyers at closing up to 1.5%
  • Helpful tools like school reports and crime rates
  • Available in over 90 major metro areas

Redfin makes the home search and transaction process easy through seamless digital integration and dedicated agent support. Buyers can potentially save thousands with Redfin’s cash back program.

Cons of Working With Redfin

Some drawbacks of Redfin may include:

  • Primarily located in urban metro areas, fewer rural options
  • Relies on Supra lockboxes for home tours rather than digital access
  • Provides less personal touch than independent local brokers
  • High demand can mean limited housing inventory
  • Strict criteria required to get maximum buyer refund
  • Can take days for responses during competitive bidding

Redfin prioritizes convenience through technology which sometimes can mean slower personal responses. Home inventory is low in hot markets as well.

Pros of Working With Keller Williams

Some major advantages of Keller Williams Realty:

  • Available in thousands of markets from urban to rural
  • Access to home listings across the U.S. and worldwide
  • Robust education and training programs for agents
  • Promotes collaboration through team models
  • Unique profit sharing bonuses for associates
  • Low startup costs for new real estate agents
  • Feature-packed tech tools improve agent productivity

With education, profit sharing, and tech tools, Keller Williams stands out at empowering real estate agents to grow their businesses and income. Their extensive presence also opens more markets.

Cons of Working With Keller Williams

Some potential downsides of Keller Williams for consumers include:

  • Less seamless end-to-end experience for buyers and sellers
  • No direct buyer cashback incentives
  • Inconsistent service between high and low performing agents
  • Less oversight and screening of agents
  • Less negotiation support on offers compared to Redfin
  • Many competing agents under one roof

As an agent-focused brokerage, Keller Williams caters more to its associates than consumers looking for extensive services and support.

Also Read: Comparison Between Showami And Redfin

Frequently Asked Questions (FAQs)

How do you get leads with Keller Williams?

Keller Williams agents can leverage provided lead generation tools like their CRM, Sphere tool, and automated marketing campaigns. Agents also get referral networks from KW events and seminars. More successful agents often buy leads from third-party sources as well.

What is Keller Williams’ annual revenue?

As a private franchise, Keller Williams does not disclose their full financials publicly. But Keller Williams is estimated to bring in $300 – $400 million in annual revenue from royalties, fees, and profits shared from the company’s real estate market centers.

How much do Redfin agents make in Los Angeles?

According to Glassdoor salary reports, the average base pay for Redfin agents in the Los Angeles metro area ranges from $60,000 to $85,000. Total pay can be $90,000 – $150,000 including commissions and bonuses. Redfin agent salaries vary based on experience and sales volume.

Also Read: Comparison Between Berkshire Hathaway And Keller Williams.

Final Thought

When weighing Redfin Vs. Keller Williams for your real estate needs, keep these key differences in mind:

Consider Redfin if you want:

  • A digital-focused real estate experience
  • Potential cash back incentives for buyers
  • Attentive agent service at key transaction moments

Consider Keller Williams if you want:

  • A growth-oriented entrepreneurial environment as an agent
  • Access to markets in smaller metro and rural areas
  • Robust training and education programs

Both brokerages aim to be innovators in real estate. Redfin offers a stellar consumer experience while Keller Williams focuses on empowering real estate agents.

Talk to agents from both brokerages to see which model best fits your goals as a buyer or seller. The right real estate partner can save you time, money, and headaches.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.