Re:Real estate site Redfin files for IPO
by vadym909 on Friday July 07, 2017 @01:30PM
(#14720252)
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%.
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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.
Re:Real estate site Redfin files for IPO
by bacontacos on Friday July 07, 2017 @02:57PM
(#14721052)
zillow is much more than a website if you're an agent
Re:Real estate site Redfin files for IPO
by hkmurakami on Friday July 07, 2017 @01:41PM
(#14720367)
They have physical brokers in each region (I think the unit is more granular than each state, iirc?)
Re:Real estate site Redfin files for IPO
by apendleton on Friday July 07, 2017 @02:15PM
(#14720683)
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.