Redfin (NASDAQ:RDFN) has introduced Sign & Save, which the Seattle brokerage described as “a new way for consumers to get a better deal in real estate.”
According to the company, home buyers who sign up to work with a Redfin agent before the second home tour can get a refund of 0.25% of the purchase price at closing. For customers who purchase a luxury home through Redfin’s Premier service, Redfin offers a 0.5% Sign & Save refund.
Redfin noted that an eligible homebuyer purchasing a $500,000 home would save $1,250 using the program while the buyer of a $2 million home would receive a $10,000 refund.
“Redfin is putting money back in homebuyers’ pockets at a time when many are struggling with high prices and mortgage rates,” said Jason Aleem, Redfin’s senior vice president of real estate operations. “The concept is simple: as a Sign & Save customer you get extra savings because we know you’re serious about buying a home, and we’re serious about getting you into one. We started piloting Sign & Save in a handful of cities in September and the customer response has been fantastic. We’re now rolling it out to dozens more markets because we believe it will help our agents close more sales and increase profits by identifying and rewarding homebuyers who are ready to make a purchase.”
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They say this as if it’s a good thing, when really they’ve reduced the refund significantly from when their company started. I get it, they’re in debt, but the positive spin they put on the news makes me laugh.
Agreed!
To represent the buyers, per new state law in Washington, they now HAVE to sign them so this is funny. Also, they are really assuming and depending on sellers to pay buyer broker fees. What if they don’t? Ask the buyer to pay their fee and give them a discount?
How much of a refund do you give your clients?
Why does it matter if it was reduced? Are buyers going to turn the money down, or be grateful it’s more than nothing.
Make them a better deal.
Buying a home is not a deal, it is a life investment . I am glad to know you get a Deal from your doctor when you invest in your health. A deal from your attorney when you have to use one. Deal means you’re probably working with a company or person who looks at you, like a deal. They don’t give their client value, maybe not even the facts. That perception of a deal could cost that buyer their financial future.
100%
Absolutely, Leanne!! I wonder if that “refund” is coming out of the seller or the listing agent – who’s paying for that?
Well stated Leanne!
It’s bad enough that some Realtors are doling out reduced commissions. Most of us work very hard for our income.
I wonder how their investors feel. $19 million loss in Q3 2023.
That is not much of a deal! $1250.00 on a $500k home. Sellers may be paying $30k in commission.
Redfin is an unethical company. They are attempting to steal customers away from agents who have worked with a particular customer. Suggesting that the potential buyer contact Redfin before their second home tour. They were not the “Procuring Cause” for identifying, or showing such property. They are in essence bribing customers to leave an agent and do something unethical. They should be sanctioned by the appropriate Real Estate board.
The first meeting with prospective buyer is often at the first showing. For example, if you got a lead from Zillow or similar methods. Therefore, it does make sense that the program allows for this common situation. I see your point, but I don’t think its primary purpose is to steal away agents.
They mean the second tour with Redfin. They aren’t expected to sign before trying them out. Nothing to do with stealing customers.
If you have to bribe someone to work with you, you are not doing your job well. My clients are loyal to me because I go above and beyond for them, not because I pay them to work with me. I guess it all depends upon what is important to someone.
YES!
One little fly in the soup is that many states, including my own Missouri and Kansas do not allow any financial kickbacks to clients to entice them to do business with them. Something is Fishy in Seattle!
They will effectively end this business. They are going ghetto
To represent the buyers, per new state law in Washington, they now HAVE to sign them so this is funny. Also, they are really assuming and depending on sellers to pay buyer broker fees. What if they don’t? Ask the buyer to pay their fee and give them a discount?
In Michigan we have always had to represent buyers with a signed agreement only. How you stated the commission being paid is not entirely accurate though. Sellers do not pay the buyers “broker fees”. Sellers pay their listing agent the commission being charged for advertising and doing the work to get the home sold. Typically between 5% and 7%. It’s up to the listing agent to decide how much of that percentage they are going to give away to another agent who may be representing the buyer. That commission is not a broker fee. Broker fees are separate and would be charged to the buyer from the buyer’s broker. An example would be a closing transaction fee, or a retainer fee etc. those fees usually are somewhere between $300 and $1,500. Hope this information helps add to your knowledge vault.
How is this not discriminatory? So buyers that can afford more get a bigger discount? Sounds like a fair housing violation to me… Sad representation of our industry.
It is typical in businesses to offer a similar deal. Our business is becoming more of a click basis than personal transactions. We don’t have to like it but it is heading in a different direction today. This is just one change. Look at car dealer situation. We are following that road in many ways