Redfin Agents Earned a Median Income of $112,200 in 2020, More than Double the Median of $49,700 for Traditional Agents
Redfin strives to be the best employer in real estate by offering excellent compensation, benefits and opportunities for career growth. The median income for all Redfin lead agents was $112,200 in 2020. That’s more than double the median gross income of $49,700 that a typical real estate agent makes in a year, according to data from the National Association of Realtors.
Redfin median income includes salary, bonuses from home sales and Redfin stock. It does not include the value of the benefits and expenses that Redfin covers for agents, which total about $25,000 per agent per year. Benefits are described in more detail below. Redfin agents earn these benefits because they are employees, not independent contractors. Traditional agents, who tend to be independent contractors working solely on commissions, don’t typically receive benefits and usually pay for all of their business expenses out of pocket.
Redfin Agents Have Strong Earnings in Year One
Redfin puts agents on a path to earn six figures after their first year by providing team support, training, technology and introductions to 100+ serious customers per year. In their first year at the company, Redfin real estate agents earned an average of $63,000, which is already $13,000 more than the annual agent income reported by the National Association of Realtors.
Opportunity to Grow Income Quickly
Real estate agents are able to rapidly grow their earnings at Redfin as they are promoted within the company. Redfin agents who have been at the company for 3 or more years earn an average income of $160,000. While there is no direct data on how much agents at other brokerages earn over time, data from the National Association of Realtors finds agents with 3 to 5 years of experience earned a median of $45,400 before taxes and expenses and agents with 6 to 15 years of experienced earned a median of $68,300 before taxes and expenses.
As in most industries, average agent pay at Redfin varies by market. In markets with higher home prices and cost of living, Redfin agents earn more on average. For example, in Austin, the average pay is $67,000 for agents in their first year and $173,000 for agents who’ve been at Redfin for three or more years. You can see the average income and how Redfin agents are paid by market in our compensation guide.
Salary or Commissions? How Redfin Agents Get Paid
Most agents at traditional brokerages are paid solely on commissions from closed sales. As employees, Redfin agents earn a base salary and bonuses for every home purchase or sale they close. The bonus amount is tied to the price of the home. In the first year, about 30% of agent pay is base salary and 70% comes from transaction bonuses. As agents grow their income at Redfin, the balance between transaction bonuses and base salary tends to shift with more earnings coming from bonuses. Agents who meet performance goals are rewarded with higher base salary and higher transaction bonuses. Redfin also rewards agents who develop loyal customers by paying higher bonuses for repeat, referral and sphere customers. The top performing agents also earn Redfin stock.
“The consistency of income is a big plus for me,” said Matt Ferris, who started with the company in 2020 in Northern Virginia. “I’m regularly meeting customers through Redfin’s site, so I have much more predictable income and consistent sales than I had as a traditional agent. The base salary provides security if you have a slower month.”
“When I was a traditional agent, it was stressful to feel like each sale was so important and necessary to support my family,” Ferris explained. “The Redfin approach has been liberating. I don’t feel any pressure to ‘sell’ a client, just help them. I don’t have to treat a barbeque or kid’s birthday party like a marketing opportunity, but I’m proud to talk about what I do and let the conversation flow naturally. I meet serious customers at Redfin and I can just focus on giving them the best advice, even if that advice is to save up for a bit longer to get the home they really want.”
Redfin Spends $25,000 per Agent for Benefits and Expenses Every Year
In addition to paying agents well, Redfin spends approximately $25,000 per agent per year for benefits and business expenses. All of Redfin’s employee agents are eligible for medical, dental and vision plans for themselves and their families. Redfin’s plans offer comprehensive coverage with affordable premiums and low out-of-pocket costs.
“In 2018 before I joined Redfin, I was working at a traditional brokerage and became very ill,” said Lisa Tucker, a Washington, D.C. agent. “I didn’t have health coverage, so I wasn’t able to get the care that I needed. I was so sick that I wasn’t able to work at all for two months and my business dried up. It was a scary time that made me question if I could stay in this industry that I love.”
“Shortly after, I found Redfin and learned about the benefits and fell in love with the customer-centric culture. It’s rare for brokerages to offer health insurance to real estate agents at all, let alone such good healthcare at a low cost. I had no idea that there was a brokerage that would let me do what I love, earn a good living and take care of myself.”
In addition to healthcare, Redfin agents earn paid vacation and parental leave and disability insurance. They can enroll in 401(k), healthcare and dependent care flexible savings accounts, and coverage for fertility treatments. Employees are also able to enroll in our employee stock purchase plan, which lets employees purchase Redfin shares at a discounted price. This in addition to shares of Redfin that are awarded to high-performing agents as part of their compensation.
All Expenses Paid
Redfin covers the traditional costs of doing business, which we estimate saves each Redfin Agent $14,000 on average every year. Redfin agents have virtually no expenses because Redfin covers it all:
- MLS dues, license renewal fees and association fees
- Listing materials, including signage, lockboxes, flyers, postcards, 3D scans, online advertisements and other advertising materials
- Mobile phone service
- Laptop, printer and ink
- Training, coaching and continuing education
Traditional real estate agents often pay for all of this out of their own pockets, as well as self-employment taxes. The cost to get a real estate license, cover annual dues and fees and purchase online leads is high enough to send a new licensee into debt before they’ve ever made a sale.
“In traditional real estate, you have to spend money to make money,” said Tucker. “For one listing, you’re paying for the installation of a sign, a lockbox, a photographer, social media ads, the list goes on. You spend hundreds or thousands of dollars before you make a dime. Not only do I not have to come out of pocket for anything at Redfin, all of these services are provided standard for every customer. So I’m offering the best product to my clients, all for a low fee.”
Redfin Technology and Support: Priceless
$25,000 per agent is a conservative estimate of the value of Redfin benefits because it doesn’t include Redfin’s technology and support. It is hard to put a price on the support agents receive. Every agent is backed by a team of people— also employees of Redfin who earn salary and benefits— to help them serve customers well. This team structure is a big reason Redfin agents are three times more productive than agents at other brokerages.
Every lead agent works with a coordinator who helps handle paperwork, schedule closings and follow-up with lenders, attorneys and title companies to keep deals on track. Coordinators also help get homes ready to list by scheduling photoshoots, creating marketing materials and launching listings on the MLS. Redfin’s tour coordinators and support agents field phone calls and inquiries from the website, set up meetings with new customers and schedule tours on behalf of the Redfin agent. Redfin agents support each other and share knowledge. Team managers and the internal training team provide personalized coaching and opportunities for professional development.
This team approach allows agents to focus their energy on delivering great service instead of managing logistics and paperwork. Redfin agents spend most of their time meeting clients, learning about their goals, giving them good advice and fiercely advocating for them.
Redfin agents are also supported by a network of associate agents. These are independent contractors who hang their license with Redfin and get paid to attend showings and other appointments on behalf of Redfin’s lead agents. Associate agents help Redfin customers see homes right away, even if their lead agent is not available at the same time.
All of this coordination is powered by Redfin’s tech platform, which is built by Redfin engineers in conjunction with agents. Redfin’s website and mobile apps are the business generator drawing customers to Redfin with a beautiful search experience. Redfin agents don’t have to spend any time or money on “lead” generation. They meet 100+ serious customers every year through the Redfin website and repeat and referral customers. Behind Redfin’s consumer site is Agent Tools, Redfin’s software for agents. Agent Tools helps agents work efficiently, so they spend more time with customers. Agent Tools makes it easy for agents to connect with clients, coordinate with teammates, manage appointments, and track paperwork, transaction deadlines and milestones, all in one platform.
Mission and Culture: It’s More than the Money
Everyone at Redfin, from agents and coordinators to accountants and engineers, rallies around our mission to redefine real estate in the consumer’s favor. It’s a collaborative culture that encourages new ideas from across the company and values people who question the status quo and think creatively about how we can make real estate better.
Agents and support staff have multiple paths to advance within the company including roles in training and management, or pursuing opportunities to develop new services and products, like Redfin Concierge and RedfinNow.
Recognizing a diverse, inclusive workforce is vital to our mission, Redfin seeks talent from all backgrounds in terms of education, military service, race, age, gender and sexual orientation. Building a workforce that reflects the diversity of our customers and the communities we serve is a priority and ongoing effort for Redfin.
Interested in Redfin?
Looking for a job in real estate? We’re hiring people of all backgrounds who are passionate about serving customers. Learn about Lead Agent job opportunities, Associate Agent job opportunities, or check out our guide on how to become a real estate agent if you’re just getting started.
Annual gross income for Redfin Lead Agents includes salary, bonuses, and stock-based compensation for the full 2020 calendar year and is compared to the median Realtor(R) income, per the NAR 2020 Member Profile.
Average income for first-year Redfin lead agents included agents who worked a full and consecutive 12 months between Jan. 1, 2017 and Jan. 27, 2021. It is an average of what first year agents received in their paychecks within the first 12 months of work at Redfin based on their own start date.
This post was originally published in 2018 and was updated in 2021.