Redfin, mortgage rates

Technology-powered real estate brokerage Redfin has expanded its 1 percent listing fee to home sellers in 18 additional markets, including Boston. Now approximately 80 percent of Redfin’s home-selling customers will pay them just 1 percent of the final sale price, subject to a minimum of between $3,000 to $5,500, depending on the market.

Sellers typically pay their listing agent a commission of 2.5 percent to 3 percent of the home’s sale price. With a 1 percent listing fee, sellers working with a Redfin agent will save between $7,000 and $10,000 on a $500,000 home sale. The 1 percent listing fee does not include buyer’s agent commission, which is typically paid by the seller.

The lowered listing fee is being offset by a reduction of the Redfin refund for buyers in the new 1 percent listing markets. Buyers can continue to see the amount of the refund, which is based on the price of the home, on the home listing page.

“This pricing better reflects how our customers want to pay a real estate agent,” Redfin CEO Glenn Kelman said in a statement. “Especially in today’s hot market, the most value-conscious customer is the one selling, not buying, a home. We first tried shifting more savings from buyers to sellers nearly three years ago, with 1 percent pricing in Washington, D.C., and then later in four other markets, and our overall share gains in those markets have outpaced other Redfin markets.”

The 18 new markets join Baltimore, Chicago, Denver, San Diego, Seattle, Washington, D.C. and Northern Virginia, where Redfin rolled out a trial test of 1 percent listing fees. Redfin will continue to charge a 1.5 percent listing fee in the other markets in which it operates.

Redfin Expands 1 Percent Listing Fee Service To Boston

by Jim Morrison time to read: 1 min
0