Redfin (https://www.redfin.com/) is a full-service real estate brokerage. The Seattle-based company was founded in 2004, and went public in August 2017. Glenn Kelman is the CEO. Redfin’s business model to undercut competition is based on sellers paying Redfin a discounted fee, either 1.0 or 1.5% to list the seller’s home. This does not include an additional fee charged to the seller to compensate the brokerage representing the buyer. This latter fee usually is in the 2.0-3.0% range. Buyers who buy with Redfin also get a portion of the brokerages’ commission back (called the Redfin Rebate) that can be applied to their closing costs or in the form of a check after they close on their home tax free.
Listed below are the Redfin Fees:
- Redfin Buyer’s Agent Fee: Buyer’s agent fee subject to change. Minimum buyer’s agent commission must exceed 1% of sale price or $6,500 (whichever is greater) before deal is eligible for the Redfin Refund when available.
- Redfin Listing Fee: Listing fee subject to market-based minimums, as outlined below. Buyer’s agent fee not included. For example, if the buyer’s agent fee is 2.5%, a seller who pays a 1.5% listing fee will pay a total fee of 4%. Listing fee increased by 1% of sale price if buyer is unrepresented. Listing fee and minimums subject to change. Sell for a 1% listing fee only if you also buy with Redfin within 365 days of closing on your Redfin listing. If you sell first, we will initially charge a 1.5% listing fee and then send you a check for the 0.5% difference after you buy your next home with Redfin.
- The company pairs local Redfin Agents with powerful technology to get buyers into the right home, sell the current one for more, and save you thousands in fees,
- See new listings first, book home tours on demand, and sell the home for more through better marketing—all with the power of Redfin’s technology.
- Buyers get full service with a local Redfin Agent who will move mountains to get buyers what they want without the sales pressure to settle for anything less.
- Pay a 1% listing fee when customers buy and sell, and get a buyer refund. Customers save $8,600 on average.
In conclusion, Redfin is the best low cost full-service real estate brokerage.