When it comes to buying or selling a property, choosing the right company and agent can be a daunting task. With so many options, it can be challenging to know which one to trust. In this article, we will take a closer look at UpNest, one of the new companies entering the real estate space. Here’s more information about UpNest and some of their reviews to help you make an informed decision.
What is UpNest?
UpNest is an online platform owned by Realtor.com that claims to connect home buyers and sellers with real estate agents. After you fill out a form with your property and contact information you will be shown three to five local agents who want your business. The company claims to have a network of more than 20,000 “top-rated” agents across the United States. In reality, all UpNest requires for an agent to use its platform is that they have a current real estate license and 3 years of experience, a minimum of six transactions over the last twelve months, and some online reviews. This means there is no way to know for sure that the agent you choose is actually top-rated.
UpNest tries to differentiate itself from the other agent matching services available by having the real estate agents on its platform “compete” against one another. This process, in theory, should encourage the agents on their platform to offer lower commission fees. The truth is much more complicated than that.
The service can be a great starting point for identifying real estate agents in your local area, buy you may be better off just going directly to a local agent yourself. This is because UpNest doesn’t pre-negotiate commission fees on your behalf, so savings may not be as good compared to other options such as Assist2Sell. In addition, the platform requires all of the agents using it’s service to pay UpNest a 30% portion of their income. The reality is many agents have to charge more to cover the added expense of using UpNest.
How Does UpNest Work?
Here is a quick breakdown of what it takes to use UpNest:
You’ll need to sign up and enter details either about what you are looking to buy or information about your property.
Once you enter the required information, your profile will be compared to agents in its system that are near your local area. Agents will then receive your information to determine if they’re willing to give up 30% of the commission for your business.
You can receive three to five proposals. These proposals will contain anything from commission quotes to rebate promises to make it worth your while to choose them over another agent.
You get to decide if you are going to walk away and start your real estate journey elsewhere or pick an agent. There is no obligation, but your information has already been provided to agents on the platform and you may receive inquiries even after you’ve decided to go another direction.
Selling a Home with UpNest
Home sellers that sign up for UpNest will have their information distributed to agents on the platform. You can review the agent’s profile as well as their proposal once you receive it.
The pitch sellers receive will usually include the commission rate the agent is offering. This is very critical because the seller is the one responsible for paying all of the commission fees. The potential savings are heavily dependent on the commission rate since UpNest does not negotiate any guaranteed savings on the customer’s behalf.
Buying a Home with UpNest
The process of finding an agent, whether selling or buying is similar. The main difference is that many of the buyer’s agents on UpNest offer what the site calls a “commission refund” or “buyer rebate”
This term is a bit misleading because the seller is the one paying the real estate commissions. The buyer’s agent is agreeing to give the homebuyer a percentage of the commission that they make from the transaction in addition to the fee they have to pay UpNest.
It is worth noting that not all UpNest agents offer buyer rebates, and this offer isn’t available in all markets. In reality, these types of rebates are illegal in many states.
UpNest Reviews: What Are Customers Saying?
UpNest has both positive and negative reviews from its customers. Many of the reviews are positive with roughly 4.5 stars across multiple platforms. The negative review, and positive ones alike, reveal some issues. Here’s what we found from reading the reviews.
What Customers Liked
A lot of reviews expressed that they appreciated how fast the platform worked with matching them to an agent and that they get to choose from multiple agents.
“...It was faster and easier than meeting in person. Our agent contacted us right away and we met with him the next day…” - Tina Panzarella, Google
The reviews also seemed to be overall pretty satisfied with the quality of the agent they got matched with.
What Customers Disliked
Most of the complaints about UpNest revolved around customer service, and representatives being unresponsive. Even this positive review cites the lack of communication.
“...They don’t respond email, call, or text messages. Need to be more communicative…” - Ally Ao, Google
This is a major issue, as an agent matching service the number one priority should be making sure the agents that are using the platform are not receiving complaints from customers. The lack of reliability with UpNest’s customer service could leave you dealing with a problem with the agent you chose on your own.
Many negative reviews also were disappointed with the lack of savings they received. UpNest doesn’t guarantee that you will receive savings by using their platform, but they do advertise that they “could” save you money on commission fees compared to other options. One review claimed that UpNest had promised to send them $300 after purchasing a new home through the service and that money never came.
“...they promised to send $300 after purchasing a new home with their service and it never came. I contacted my rep after about 45 days and she expressed concern and said she would check. Another 30 days went by and still no check or further response…” - Edward Sohmers, Google
There were also many reviews citing that after they had decided to go a different direction, they still received calls and emails from agents that they had been matched with on the platform.
“...I chose not to contact any of their agents. But that did not stop them from trying to contact me.” - Mikery 2, Google
Is UpNest a Legitimate Company?
UpNest is a legitimate company that is owned by Move, Inc., the same owner of Realtor.com. It does hold an active brokerage license in California; as an active brokerage, the license is a requirement for all agent matching services.
How Does UpNest Make Money?
UpNest makes money by charging a 30% referral fee to the agents that use the site. This fee is a percentage of the commission the agent earns from the sale before they have to split with their broker. In order for the agent to make a profit, in many cases they have to charge more than they normally would.
Who is UpNest Best For?
UpNest is best for users that are selling a home, don’t care about saving money, and are not concerned about Customer Service. The platform's algorithm usually does an okay job at matching agents with customers but has in the past matched users with an agent that doesn’t really work in their area.
For buyers, UpNest’s potential buyer rebates could save you some money. Beware that this program comes with lots of restrictions and isn’t offered in many markets. You may be better off choosing another company.
Conclusion
In conclusion, UpNest is not a true real estate company, rather it is an agent-matching service. UpNest is a potential resource for buyers and sellers that are trying to save money. There are n guaranteed savings and agents are often forced to charge a higher-than-normal commission fee due to the 30% referral charge they face. Because of this, you may be better off doing some simple research and contacting a local agent directly, like Assist2Sell. Assist2Sell and many others offer full service at a reasonable price; their fees are openly advertised and usually far less than other agents in the area. It’s important to consider the differences between all the companies and choose the one that best meets your needs.
FAQs
Is UpNest a legitimate company? ›
Is UpNest Legitimate? UpNest is a legitimate real estate company that has an A+ rating from the Better Business Bureau (BBB). While UpNest is a licensed broker in California and Indiana, its online platform does not provide traditional real estate broker services.
What is the UpNest referral fee? ›At UpNest, we charge a 30% referral fee at the close of a successful transaction for selling or buying a home, which is calculated based on the commission the agent receives (before the broker split) from the referral transaction.
How to save money on real estate agent? ›- Ask Your Realtor if They're Open to Negotiating. ...
- Offer to Sell and Buy with the Same Agent. ...
- Make Your Home Easier to Sell. ...
- Don't Be Afraid to Shop Around. ...
- Consider Dual Agency. ...
- Offer a Lower Buyer's Agent Commission (Maybe!) ...
- Dare to Go FSBO. ...
- Use a Flat Fee MLS Listing Service.
Simon Ru - Founder & CEO - UpNest by Realtor.com | LinkedIn.
What is an alternative to UpNest? ›upnest.com's top 5 competitors in April 2023 are: homelight.com, listwithclever.com, realestatewitch.com, opendoor.com, and more.
What is a typical referral fee in consulting? ›A finder's fee need not be excessive – the most common structure is between 5-15% of the deal value (agreed upon by both parties ahead of time). This means that if the referral turns into something big, the 'finder' will have a lot more to celebrate.
Should I ask for a referral fee? ›It's appropriate to thank someone who sends you referrals, but even if they don't ask or expect a fee, send them a thank you — candy, food, gift card, or maybe an item or tool they'd like. I've had people buy me power tools and others send fruit or chocolate. Make sure the gift value is appropriate for the job value.
What is a typical referral fee employee? ›What is a typical referral bonus? The cash value of referral bonuses ranges from about $250 for entry-level positions to $25,000 for executive roles. The average employee referral bonus amount ranges from $1,000 to $5,000.
What not to say to a real estate agent? ›- You Won't Settle for a Lower Price.
- Only Bring Me Serious Offers.
- Don't Show My Home Unless I'm Available.
- You Have All the Time in the World to Sell.
- You are Selling the Home Because of a Divorce.
- You Have to Sell Because of Financial Problems.
- You Are Moving Because of a Serious Illness.
If You're Going to Dream, Dream Big (and Plan Even Bigger) Consider what it would take to make $1 million in gross commissions your first year selling real estate (before expenses and taxes). It would involve selling approximately $50 million of real property with an average salesperson commission of 2%.
How do you get around realtor fees? ›
- Negotiate Your Realtor's Fee. The phrase “everything is negotiable” applies to real estate more than any other market. ...
- Sell Through the Same Realtor You Buy Through. ...
- Shop for the Best Deal. ...
- Use Third-party Sellers and a Flat-rate MLS Listing Service. ...
- Use a Discount Broker.
At the top, Orange County, California-based Donald Bren remains the wealthiest real estate billionaire in the country with an estimated $16.2 billion net worth, nearly $1 billion higher than last year.
How many employees does UpNest have? ›UpNest has 30 employees. View the comprehensive list of UpNest employees, their locations, business contact details and key personnel.
Who owns Offerpad real estate? ›Jerry Coleman - Founder - Offerpad | LinkedIn.
What website builder is best for realtors? ›- Squarespace – Best for small real estate websites.
- Duda – Best IDX integration.
- Wix – Best for ease of use.
- GoDaddy – Best to get a website published quickly.
- WordPress.org – Best for large, content-heavy sites looking to expand.
- Uncertainty about real estate market. This is perhaps one of the biggest uncertainties realtors have to deal with on a daily basis. ...
- Constantly being on the go. ...
- Commission is by no means a guarantee. ...
- Being underpaid for hard work. ...
- Dealing with difficult clients.
The top 3 most popular real estate websites (Zillow, Realtor, and Trulia) earn revenue primarily from selling leads to real estate agents. With 10.2 million monthly visitors, Redfin is the top-ranking website for a full-service brokerage (works directly with consumers).
How much should I ask for consulting fee? ›You take your annual salary–with or without 2 weeks of vacation–and divided it by 50/52 weeks and then 40 hours. The result will be your hourly rate. To estimate your consultancy rate, you mark that up by 50% for example to account for additional expenses such as health care and thereby arrive at your consultancy rate.
What is the difference between a commission and a referral fee? ›Referral fees are a marketing expense, a payment for a lead (but it's only paid if the sale is made). Sales commissions are a sales expense, a payment to a salesperson to close a sale.
Are referral fees tax deductible? ›The short answer is, generally, “yes.” Referral bonuses may indeed be subject to federal, state, and local taxes as well as social security and Medicare taxes. But it depends on how much referrers earn and whether or not they're employees.
Are referral programs legal? ›
Are referral fees legal? Yes, referral fees are legal, but only within certain industries. Most other industries also don't pose any requirements in order for a company to implement referral fees.
What is the best way to ask for referrals? ›- Ask directly. Directly asking a client for referrals is the most straightforward method. ...
- Post on social media. ...
- Include the request on your invoice. ...
- Ask for reviews. ...
- Be specific and personal. ...
- Remind contacts. ...
- Send an email to announce new offerings. ...
- Conduct a survey.
The standard referral fee percentage could be around 10% for closed jobs. It could start at 2 – 5% for an email introduction with the client and go up to 15 – 20% for projects where the referrer deals alone with the client. You could also work with flat referral fees.
What is the difference between a referral fee and a kickback? ›The individual or entity benefitting from the referral is typically the party who pays the fee. Conversely, a kickback is money paid illegally to an individual for the arrangement of a transaction and can be considered a bribe or inducement.
Do companies pay for referrals? ›It depends on the employer and on company policy. In some cases, you may be eligible for a bonus simply for referring a candidate for employment. At other companies, the referral may need to result in a new hire.
What is the meaning of finders fee? ›A finder's fee is a commission paid to a person who identified for, brought to the attention of, or facilitated a business transaction between interested parties.
How to tell a real estate agent you are no longer interested? ›Do for your agent what you expect in return, and be direct and kind. Ask them if there's a good time for you both to talk, so they can be mentally prepared for the rejection. During your scheduled call, tell your real estate agent you've chosen to work with someone else and thank them for their time.
Do real estate agents play games? ›Do real estate agents play tricks or games on clients? Yes. Unfortunately, there are some real estate agents who intentionally deceive, defraud, or trick their clients to make more money.
What makes a real estate agent stand out? ›What makes a good real estate agent? Overall, being a dynamite communicator, having an online and community presence, and using professional photography to showcase your listings make for great, modern real estate agents.
How to invest $20 000 dollars in real estate? ›What Is the Best Way To Invest $20K in Real Estate? A few options are available if you're looking to invest your $20,000 in real estate. You could purchase a property outright with friends or family, put the money into a real estate investment trust (REIT), or use it to wholesale real estate.
What are the 3 L's of a millionaire real estate agent? ›
The 3 L's: Listings, Leads, and Leverage
The three key L's that are necessary for garnering long-term success include Listings, Leads, and Leverage. Gary Keller became a successful real estate agent because he was able to complete numerous contracts in a short period of time.
- Get an experienced real estate agent. ...
- Know your property's strengths. ...
- Make your home irresistible. ...
- Create stunning visuals. ...
- Educate potential buyers. ...
- Price properly. ...
- Know when to list. ...
- Be patient.
What is the lowest commission a real estate agent will take? You can find low commission realtors who charge as little as 1.5%. Typically, real estate agents charge a 3% commission, which adds up to 6% total commission for the buyer's agent and seller's agent.
What fee do most realtors charge? ›What percent commission do most real estate agents charge? The traditional standard commission is 6 percent of a home's purchase price, which is split evenly (3 percent each) between the buyer's agent and the seller's agent.
Which real estate brokerage firm has the lowest fees? ›| Company | Listing fee | Avg. rating |
|---|---|---|
| 🏆 1. Clever Real Estate | 1.5% (min. $3,000) | 4.9 (1,995) |
| 2. Redfin | 1.5% (min. fee varies) | 3.7 (301) |
| 3. Ideal Agent | 2% (min. $3,000) | 4.9 (5,842) |
| 4. UpNest | N/A - varies | 4.6 (5,093) |
If you're competing against other agents who are also using Realtor.com, then it may not be worth it to buy leads from Realtor.com. However, if you're the only agent in your area using Realtor.com, then it could be a good way to get an edge over your competition.
Is Realtor website trustworthy? ›Realtor.com is affiliated with the National Association of Realtors and uses MLS listings which are sourced from around 580 regional databases and considered the gold standard for quality listings.6 For this reason, Realtor.com is our pick for most accurate real estate website.
Who acquired Realtor com? ›online real estate business to CoStar Group Inc. Move is the parent of Realtor.com and other real estate-related websites.
Where is UpNest headquarters? ›Where is UpNest 's headquarters? UpNest is located in San Mateo, California, United States .
How many realtors work for the Oppenheim Group? ›The Oppenheim Group lists more than 30 agents on their website, but only a handful of them appear on Selling Sunset, so it's possible that when one agent is showing a listing on TV, they are sharing that listing with another agent who works off-screen.
How many users does Realtor com have? ›
Realtor.com is a real estate listings website operated by the News Corp subsidiary Move, Inc. and based in Santa Clara, California. It is the second most visited real estate listings website in the United States as of 2021, with over 100 million monthly active users.
Where do realtors get most of their leads? ›- Door Knocking. People in today's world are understandably nervous when they hear a knock on their door and aren't expecting someone. ...
- Cold Calling. ...
- Direct Mail. ...
- Past Clients. ...
- FSBO Listings. ...
- Expired Listings. ...
- Former Coworkers' Client Lists. ...
- Social Media Marketing/Advertising.
Zillow and Realtor.com offer excellent lead-generation services for real estate agents regarding lead quality. Zillow's Premier Agent program gives agents enhanced visibility and prime positioning on the platform. Realtor.com's Connections Plus offers exclusive leads to help agents gain more clients.
What percentage of leads turn into sales real estate? ›The National Association of Realtors® (NAR) estimates that the average real estate lead conversion rate is 0.4%-1.2%. However, not all leads are created equal.
Are Zillow leads worth it? ›Are Zillow leads worth it? For many realtors, Zillow leads are definitely worth it. Leads from Zillow are actively looking for homes, so they're a lot warmer than leads you might find through pay-per-click or social media advertising.
How do I know if a seller website is legit? ›- Use the free McAfee WebAdvisor to check for safe sites. ...
- Check the padlock in the address bar. ...
- Verify the website's trust seal. ...
- Use the Google Transparency Report. ...
- Check the company's social media presence. ...
- Analyze the overall look of the website.
Realtor.com and Zillow have the same MLS data coverage: the entire country is covered by both sites. However, Realtor.com offers more information for agents and brokers in their database.
What company owns the most real estate? ›1. Coldwell Banker Real Estate. The largest real estate company in the USA is Coldwell Banker. Founded in 1906, Coldwell Banker has over 100 years of experience buying and selling homes that they share with the people they work for.
Who owns the most real estate? ›Who Is the Largest Landowner in the U.S.? The largest landowners in the United States are the Emmerson family, with 2,330,000 acres of land. Red Emmerson, the patriarch of the family, founded Sierra Pacific Industries in Anderson, CA.