Exploring UpNest Reviews: Pros, Cons, and User Feedback
UpNest is a service that connects people who are selling or buying houses with real estate brokers around the United States. While UpNest claims that their service is free, they charge a referral fee to the agent. As a result, you indirectly reward UpNest for their assistance in matching you with an agent.
In contrast, Houzeo.com provides an opportunity for significant savings along with advanced technology and exceptional customer service. By choosing Houzeo, you can list your home on the MLS at a fixed rate and gain access to a comprehensive set of tools typically offered by agents.
What is UpNest?
UpNest is a platform that allows homeowners and purchasers to obtain competitive bids from full-service brokers. Sellers and buyers receive individualized quotations from UpNest that include competitive commissions, prospective buyer commission refunds, and various services.
UpNest partners with reputable real estate brokerages like Keller Williams, Re/Max, and Compass. The transparency and choice provided by UpNest are particularly advantageous for individuals who want control over their agent selection process.
However, it’s worth noting that agent quality may vary, so it’s essential to consider the associated transaction costs. By carefully analyzing these aspects, you may assess if UpNest is a good fit for you.
Is UpNest Legit?
UpNest is a valid and trustworthy real estate platform. Simon Ru founded UpNest in 2013, and its headquarters are in San Francisco, California. UpNest functions as a medium to connect buyers and sellers with local agents.
In June 2022, UpNest was acquired by Realtor.com, which further bolsters its credibility in the industry.
How Does UpNest Make Money?
UpNest doesn’t directly charge you for their services. Instead, they make their money through other avenues:
- UpNest Referral Fees: When you opt for UpNest, your listing is forwarded to one of their partner agents. The agent will then work hard to turn the lead into a client. If the agent successfully lands the contract, the broker must pay UpNest a referral fee when the transaction is completed. This fee is a percentage of the agent’s commission earned from the real estate transaction.
- UpNest Loan: UpNest allows homeowners to explore mortgage rates and loan options. However, their website lacks specific details regarding these loans. This raises concerns about transparency in their loan process.
How Does UpNest Work?
UpNest’s working process is straightforward:
- Specify Your Preferences: Buyers can begin by providing their criteria, such as location, budget, desired features, and any specific requirements they may have.
- Receive Multiple Offers: UpNest’s platform facilitates connections between buyers and multiple real estate agents.
- Evaluate Agent Proposals: Buyers can thoroughly review and compare the proposals they receive from different agents. These proposals include information about commission rates, marketing strategies, and suggested closing costs for the property.
- Select the Ideal Agent: Based on the proposals, buyers can choose the agent that best suits their needs for purchasing a home. It is also important to consider the agents’ track record, expertise, and the services they offer.
- Collaborate with the Buyer’s Agent: Once the buyer has made their selection, they can work closely with the agent to locate and purchase their dream property. They can leverage the agent’s knowledge and negotiation skills during this process.
- Provide Property Details: Sellers must furnish information about their property, including its location, size, condition, and the desired listing price, using UpNest’s platform.
- Receive Multiple Offers: UpNest facilitates connections between sellers and multiple real estate agents with expertise in the local market.
- Evaluate Agent Proposals: Sellers can carefully assess the proposals received from different agents, which encompass marketing plans, suggested listing prices, and commission rates.
- Select the Preferred Agent: Based on the proposals received, sellers have the autonomy to choose the agent that best aligns with their requirements for selling their home. It is also important to consider the agents’ expertise, sellers closing costs, and marketing strategies.
- Collaborate With the Chosen Agent: Sellers and their selected agents work together closely to prepare the property for sale, establish a competitive listing price, effectively market the property, and negotiate real estate commissions with potential buyers.
How Much Does UpNest Cost?
Both buyers and sellers can use UpNest’s services for free. There is no compulsion to hire any of the agents whose offers are submitted through the site. However, sellers should keep in mind that commission costs will still apply when dealing with an UpNest agent and the buyer’s agent.
The commission fees charged by UpNest agents vary and usually fall within the range of 4.5% to 5.5%. Buyers and sellers should carefully review the fee structure and terms with UpNest agents. Understanding the breakdown of commissions and any additional costs associated with the real estate transaction is essential.
Pros of UpNest
UpNest offers various advantages to homeowners desiring greater control over the selling process. Consider the following significant benefits:
- Access to Multiple Agents: UpNest provides buyers and sellers with access to various qualified brokers. This broad range of options allows clients to evaluate bids and pick the agent who best meets their needs.
- Competitive Agent Proposals: Through UpNest’s competitive bidding process, agents have the opportunity to submit proposals that may result in better pricing, effective marketing strategies, and competitive commission rates.
- Nationwide Coverage: UpNest operates across the United States, providing its services in various regions and markets. This allows buyers and sellers to connect with agents who possess local market knowledge.
Cons of UpNest
While UpNest offers several benefits for homeowners who choose to sell their properties with an agent, it is important to consider potential drawbacks as well. Here are a few cons to keep in mind:
- Limited Control Over Agent Selection: Buyers and sellers can choose their own agents, but the final decision must be made based on the proposals received. Thus, there is limited control over the specific agent selected.
- Reliance on Agent Proposals: The quality of agent proposals can vary, and clients must carefully review and evaluate them to ensure they meet their specific needs and expectations. This requires thorough consideration and scrutiny.
- Referral Fee for Agents: Agents who secure clients through UpNest have to pay a referral fee upon closing a transaction. This fee can impact their overall commission earnings and may influence their motivation or willingness to work with UpNest clients.
Based on 288 reviews, UpNest has an average customer rating of 4.8 stars on Google. Many Google reviews for both Houzeo and UpNest emphasize the companies’ prices as a big plus. It is worth mentioning, however, that several UpNest complaints indicate inconsistencies in their allocated agent’s performance.
If the basic services provided by UpNest didn’t pique your interest, here are two alternative companies you may want to consider:
- Houzeo.com: Houzeo offers an array of compelling features, including substantial cost savings, cutting-edge technology, top-notch customer support, and extensive listing exposure. With coverage in 47 states and Washington, D.C., they offer near-nationwide availability.
- Ideal Agent: Ideal Agent is an agent-matching service that partners with an elite roster of brokers. These agents provide the services of a full-service broker for a discounted commission fee of 2%.
Should You Opt for UpNest?
UpNest has garnered a mixed bag of opinions.
The positive aspects of UpNest include its nationwide coverage and the fact that there are no direct costs for buyers and sellers. Nevertheless, there are concerns about relying solely on agent proposals and the potential for increased competition among agents.
In contrast, Houzeo stands out as the leading For Sale By Owner MLS listing service. It is an excellent option for sellers seeking guidance throughout the selling process. Houzeo offers all the tools typically provided by agents, and their comprehensive and affordable Gold Package ensures a smooth and hassle-free home-selling experience.
Frequently Asked Questions
1. Who owns UpNest?
UpNest's Founder and CEO is Simon Ru. However, the firm was bought by Realtor.com in June 2022.
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