Do you want to earn more profit on your sales?
In the real estate industry, buyers, sellers and agents go hand in hand. It’s undeniable that agents offer a great deal of help to investors. However, one of the major drawbacks about agents is that they take a huge chunk out of your earnings in the form of commissions.
Traditional real estate agent usually charge 5%-6% of a home’s sale price in commission. And as you probably know, this amount is split between the buyer’s agents and the seller’s agent.
If you have a property that sells for $500,000, the money you’ll shell out is more or less $30,000. It sure does add up.
A Seattle-based company called Redfin wants to redefine the real estate industry and steer it in your favor.
Customer Bonuses vs. Agent Commissions
Redfin is a real estate brokerage that represents people – investors and agents alike – who are looking to buy and sell homes. Redfin is run by a group of professional, experienced full-service real estate agents who say they’re committed to earning customer-satisfaction bonuses instead of commissions.
The company operates in over 80 markets all over the United States.
Since Redfin is a full-service brokerage, they handle all of this:
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Paying for professional photos of your home and creating the 3D video walkthrough
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Working with you to determine the right price of your home based on an analysis of comparable homes in the area
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Suggesting any home improvements that can help you sell your home for more
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Helping you to find top-rated professionals to get everything landscaped, cleaned and primped to perfection
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Getting 3x more views online than other homes for sale
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Negotiating on your behalf and staying on the case until you come to terms with the buyer and get the best deal
Redfin has served over 80,000 customers, made $47 billion (with a B!) in home sales, and acquired $400 million in savings.
Small Percentages Add Up
The big difference between Redfin and other home search sites is that Redfin is a brokerage.
Redfin has its own agents instead of solely providing a marketing platform. You are able to search for homes and neighborhoods on Redfin, but when you decide to look at the homes offline, you will be redirected to Redfin agents or partners.
Instead of charging 5%-6% in commissions, Redfin leverages rebates. They make it a point to differentiate themselves from other national real estate firms like Coldwell Banker and Century 21 by charging a 1.5% listing fee rather than the usual 2%-3%.
If you wish to buy a house, Redfin offers buyers a partial refund of the agent’s commission. This refund is generally around 15% of the commission, but the amount varies depending on the market and price of the property. (There will be times when you may deal with Redfin’s ‘partner agent’ – someone who works for another firm. If that’s the case, the discounts may change.)
The commission can only be refunded with the lender's approval. This means that you can lose the refund if the lender disapproves, so it’s important to disclose the information about Redfin commission rebate to avoid confusion.
Also, these states do not allow commission refunds:
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Louisiana
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Missouri
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Oklahoma
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Oregon
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Tennessee
Redfin clients are asked to review their respective agents. Each review is published on the website. Agents with positive reviews and high customer satisfaction will receive a $1,000 bonus and more.
So, Redfin agents are driven to provide excellent customer service. They genuinely want what’s best for you.
How It Works
The process of buying and selling a property can be complicated. Redfin promises that its agents and updated technology will be with you every step of the way…
There is no obligation to buy at Redfin. You can tour as many houses as you want. If you’re not too keen on it, you can stop any time – no strings attached.
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Start browsing: Redfin updates its list of homes every 15 minutes derived directly from the MLS.
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Save your searches: You can save your searches on Redfin’s website or their app. With their preset filters, you will automatically be notified of homes that fit your preferences.
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Tour faster: If you found a home that you’d like to check out, you can easily book a tour through the app or website. Click on the ‘Schedule Tour’ button and set the desired date and time of the tour.
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Team up: The Redfin agent will be with you throughout the entire process so you’ll be able to understand the transactions better and give you honest advice on properties and writing offers. They will also negotiate on your behalf.
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Offer and close: Redfin’s agent will guide you through the closing process.
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Redfin refund: A portion of the commission received by Redfin is shared with you (the buyer) and the amount of the refund depends on the home’s asking price, as mentioned above.
Selling with Redfin
The first step in selling a property is to find an agent to represent you. Selling at Redfin ensures you get full-service and advanced technology at a lesser price.
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Pricing your home: Talk to an agent and discuss your selling motivations – do you prefer to sell quickly or do you want to take time and sell at a higher price?
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Comparative market analysis: The comparative market analysis shows you the prices of recent comparable homes sold. The agent will also pinpoint the selling features of your home and recommend improvements.
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Your listing debut: After determining the price of your home, you and your agent will agree on the best time to officially put your home on sale.
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How Redfin promotes your home:
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Premium placement on Redfin’s website: Redfin claims to be the most visited real estate brokerage website in the United States. Positioning your home on a premium placement puts you in an advantage that results in more views from active buyers.
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Professional photos and 3D tours: Normally you should be prepared to shell out a large amount of cash to have professional photos taken and 3D tours created. With Redfin, you’ll be able to get these all for free.
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Digital marketing: Digital ads are also created and posted on certain websites and social media platforms. In addition to that, Redfin will also run an email marketing campaign that targets local agents and buyers searching for homes in your chosen market area.
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Open houses: Redfin hosts open houses for you.
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Your owner dashboard: Through technology, you are able to see the number of people viewing your property and what your agent is doing.
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Accepting an offer: It is also the agent’s responsibility to go through each offer with you and give you honest advice on the optimal negotiation approach and price.
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Redfin selling commission: Another thing that makes Redfin standout is that the agents only charge 1%-1.5% to sell your home compared to the traditional 2.5%-3% listing fee.
If you want to know more about what Redfin offers, feel free to call them at 1.844.759.7732 and talk to a local Redfin agent.
Please Share
Tell us about your experience with Redfin in the comments section below.
Consider using an agent to buy and sell properties – They have access to the MLS and good ones really know their areas. The really good agents will more than pay for their commission in what they find you.
Negotiate fees – Other than taxes, pretty much everything in real estate is negotiable, including agent commissions. Fight for your money!
Market! Market! Market! – Whether you are buying or selling properties, you will do a lot better if you use lots of marketing channels.
JP Moses
is a real estate investor in Memphis, TN, with experience ranging from land lording to note buying, rehabbing, and wholesaling. However, wholesaling is the area that he enjoys most and where he bring the most experience and expertise to his students.