Industry NewsTechnology

Redfin tests out high service, lower rebate plan

Redfin Select offers alternative to per-tour fees

Redfin, a real estate brokerage company that offers deep rebates to buyers, is testing out a new service option in the Seattle area that allows buyers to participate in an unlimited amount of tours while reducing the company's rebate rate. Under the company's standard plan, called Redfin Direct, prospective buyers receive two agent-led home tours free of charge and pay $250 for additional home tours. These consumers receive a refund of two-thirds of the commission that is paid to Redfin in a home-sale transaction. The new Redfin Select plan offers a 50 percent commission refund but does not charge a per-tour fee. Participants in this service plan are limited to two tours per week. Customers can choose to switch from the Direct to the Select plans after the first two free tours. Traditional full-service real estate companies typically do not charge a fee to take buyers on tours of for-sale properties, though these companies also do not typically offer to refund a large amoun...