Redfin real estate bonus question (buyer's agent, commission, closing, listing)

[KathyKB]

On the Redfin real estate Wikipedia page it stated that Redfin gives 50% of the buyer's agent commission back to the buyer. Doesn't the seller pay for the buyer's agent and the listing agent commissions at closing? Why isn't that rebated back to the seller? As a seller, if I am considering paying the buyer's closing costs, can I take that into consideration and offer a lesser % of closing costs or none at all? Does this reasoning make sense to you? Thanks!

[Silverfall]

It isn't rebated back to you because you aren't their client. You can take into account their rebate during negotiations if you want, but it is just better to focus on the net to you.

[AZJoeD]

As a Seller you are obligated to pay the commission that you negotiated with your broker when you placed the home on the market. Your broker offered to share a portion this amount to a Buyers Agent if the BA brings a ready, willing and able buyer to purchase your home. The BA can do whatever he/she wants with their portion of the commission (pay their own bills, put it in the bank, throw a party or give it to their client).

The issue of the Seller (you) paying the Buyer's closing costs is separate from your listing agreement. That is a contractual negotiation between you and the buyer as part of the sale.

All costs, fees and payments are negotiable in any transaction. As long as they are disclosed.

[MikeJaquish]

Originally Posted by Silverfall

It isn't rebated back to you because you aren't their client. You can take into account their rebate during negotiations if you want, but it is just better to focus on the net to you.

"... focus on the net to you." Absolutely.
As long as the seller is getting the net proceeds they want, what does it matter where the rest of the money goes?

It is a bit of a semantic peculiarity to label a "rebate to buyer," (particularly for folks who proclaim that "Buyers agency is Free!") when a rebate by definition can only go to the source of the funds.

[acgood]

if you as the seller hire redfin, then YOU get a rebate. otherwise it really isn't any of your business or concern

[LOL_Whut]

Originally Posted by acgood

if you as the seller hire redfin, then YOU get a rebate. otherwise it really isn't any of your business or concern

Good point!

Has anyone here ever bought/sold through Redfin?

[2bindenver]

I thought the refund was 15% of the paid commission? So, the more money you pay on a house the more they get paid, and the more refund is given.

I would bet I could negotiate better price terms and inspection items and net the buyer more savings than the rebate amount.

[FalconheadWest]

Originally Posted by 2bindenver

I thought the refund was 15% of the paid commission? So, the more money you pay on a house the more they get paid, and the more refund is given.

I would bet I could negotiate better price terms and inspection items and net the buyer more savings than the rebate amount.

The 15% is through a partner agent when there isn't a Redfin broker in the area, or if the price point is below the Redfin price point. Also, they do not give 50% with the Redfin broker anymore. They decided they needed more greedy money, so it's a different calculation in different areas. In my area, it's around 40% and not based on the final sales price. It's based on some calculation of the original asking price.