Buy a Home: How Redfin is Different
Redfin knows when you need a web browser and when you need a real estate agent. Here's how Redfin is different from a traditional brokerage.
Here's how Redfin is different from a traditional broker
| Home-Buying Process | Traditional Agent | Redfin Agent |
| Experience Level | Variable | 20+ deals |
| Compensation | Commission as % of price | Bonus dependent on your satisfaction |
| Commission on $500,000 Home | $15,000 | $5,000 |
| Post-Close Guarantee | None | 100% satisfaction guarantee |
| Access to All MLS Listings | Yes | Yes |
| Local Real Estate Agents | Yes | Yes |
| Private, Guided Home Tours | Yes | Yes |
| Guidance Drafting Offer | Yes | Yes |
| Negotiations with Listing Agents | Yes | Yes |
| New Construction Expertise | Maybe | Yes |
| Search MLS-Listed Homes For You | Yes | No |
| Pricing: Comparative Market Analysis Data | Yes | Yes |
| Mortgage Recommendations | Yes | Yes |
| In-Person Offer Presentation | Sometimes | In special situations |
| Support for Contingencies | Yes | Yes |
| Closing Focus: Title Insurance, Escrow | Yes | Yes |
| Property Access for Inspector | Yes | Yes |
| Property Access for Appraiser | Yes | Yes |
| Walk-Through to Review Inspection | Yes | Yes |
Redfin can offer better service at lower cost because of:
- Technology: Redfin's self-service tools lower our customer service costs and keep our customers informed every step of the way.
- Productive agents: our agents have distinct roles at Redfin. Our experienced real estate agents are in the office full time to work with you on your offer and negotiations, while our newer agents handle your tours, inspections and appraisals. We don't deliver documents in person, or meet clients one-on-one outside the office.
- Low marketing costs: traditional agents may spend 60% - 75% of their time looking for customers, whereas Redfin customers sign up via the Internet.
- Smart customers: Redfin customers know how to search the Web for properties to buy on their own, and don't want to be bothered until they've found a home they like.
"Redfin and other innovators ... are using technology to reduce costs and to save time for their brokers. Agents don't find and recommend homes - customers do that on their own, using Internet listings - and that enables agents to charge less for the services they do provide, chiefly handling the paperwork and negotiations."
The Last Stand of the 6-Percenters?
New York Times, Sep. 3, 2006
