"Across the country, the Multiple Listing Services that agents use to share listing data are now considering whether to follow the lead of the
"This could lead homebuyers to be as careful about commissions as sellers already are," Kelman continued. "We've spent more than a decade trying to compete not just on the quality of our service to homebuyers, but on price, by refunding part of our commission back to the homebuyer. But the refund hasn't been well understood by buyers, who have always assumed the buyer's agent is free, even though buyer's agent fee is often baked into the price the buyer pays for the house. As a result, over the past five years Redfin has shifted most of our technology-driven commission savings to the seller, not the buyer. Now, as buyers see more and more listings where the commission paid to the buyer's agent is publicly displayed, we expect the marketplace for buyers' agents to become more efficient, with buyers comparing agents' fees just as sellers already do."
The Redfin survey found that buyers who also had recent home-selling experience were more confident in their understanding of how their agent was compensated. The survey was fielded in June and included nearly 1,000 respondents who successfully bought a home in the last year. Redfin segmented the results by comparing buyers who only bought to buyers who also sold or attempted to sell a home in the last year. Of the buyers who solely purchased a home, 61 percent lacked certainty about how their agent was paid. That number was 44 percent for buyers who also sold a home in the last year.
It makes sense that buyers who recently sold a home have a better grasp on real estate commissions. Sellers are likely to have more homebuying experience than a first time home buyer. They typically discuss the commission with their agent because they pay these costs more directly. Buyers are less likely to have discussions about compensation with their agent, which makes them less informed and less likely to negotiate.
When a homebuyer purchases with a Redfin agent, Redfin gives the buyer a portion of the commission it earns back to the buyer in the form of refund at closing. The average Redfin Refund is
For more information visit: https://www.redfin.com/blog/buyers-agent-commissions-display.
Redfin (www.redfin.com) is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 90 major metro areas across the U.S. and
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the
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Redfin Journalist Services: Alina Ptaszynski, 206-588-6863, firstname.lastname@example.org