UpNest Reviews: A Legitimate Way to Save on Real Estate Fees?
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, but 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 A2S. 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 recieve 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.
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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 reviews, and positive ones alike, reveal some common 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.
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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 no 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 A2S. A2S 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.