cutting the fees by 25% actually. Redfin acts as the buyer or seller's broker and only gives you back half of their 3% commission. The other side's broker still gets their 3%. So you pay 4.5% instead of 6%.

That only accounts for the selling side, though. You also get a refund as a buyer and if you are buying and selling with Redfin (not uncommon), the savings are substantial.

They actually only charge 1% commission as the selling agent now, too, so vs a typical 6% combined commission, they save 33% for the seller. (Assuming just a sale)

Redfin doesn't seem to disclose how they calculate the refund anymore, though, so I'm not sure how much that works out to be. Seems to be around half a percent, so lower than it used to be.

All combined, it's close to half of the traditional fees that they either refund or don't collect.

How does a web site get licensed as a real estate broker, anyway?

They are registered brokers with a website- just like Windermere. They took this path vs being just a website like Zillow.

zillow is much more than a website if you're an agent

They have physical brokers in each region (I think the unit is more granular than each state, iirc?)

Yeah I think it's by metro area. I live in DC and the same office handles DC and the Maryland and Virginia DC suburbs, and I think many of the agents are cross-licensed.