David Eraker believes agent commissions are bloated.

In November, the former Redfin CEO launched Surefield, a seller-focused brokerage designed to slice agent fees using cutting-edge, 3-D virtual tour technology.

Read the full survey findings of our hybrid brokerage report — or download the PDF.

The full-service Seattle-based firm charges sellers a 1.5 percent commission (with a minimum fee of $7,500) and caps buyer’s agents’ compensation at $2,000.

The brokerage is betting that the ubiquity of listings online and the virtual 3-D models it produces for all its listings can free sellers from “prepaying” a buyer’s agent’s commission.

Surefield has 25 listings and wouldn’t disclose how many deals it has closed. All of its agents are salaried.

Surefield how it works - full 2

Surefield’s home tour technology allows buyers to virtually walk through a home, giving them a realistic look of the space without having to visit in person. The digital models also include drone-like, aerial 3-D views outside the home.

Surefield asks prospective buyers to view the models before deciding whether to visit a home in person, which should reduce the number of home-visit requests.

Eraker co-founded Redfin in 2002 and ran the firm as CEO until 2006, when he left to pursue work outside of real estate. Surefield’s co-founder and chief operating officer, Rob McGarty, worked as a Redfin agent and a director of its lender program from 2006 to 2010.

Surefield points to the real estate commission model in developed countries outside the U.S. and Canada — where sellers pay between 1 and 2.5 percent to agents to sell their home — as evidence that its model has a chance here.

“For the first time, sellers don’t have to automatically pay for the services of buyer’s agents; buyers can realistically tour homes 24/7, and home prices won’t be artificially inflated to compensate commissions,” Surefield said.

See a comparison chart explaining what each hybrid brokerage model does — and does not — include.

What should you do about hybrid brokerages? Here are 10 suggestions.

San Diego discount broker iPayOne lived large and then sputtered.

Email Paul Hagey.


Inman Connect San Francisco is right around the corner — register now and save $200!

Start Inman Connect SF off right! Choose from three powerful events on Aug. 4. Reserve your spot now for Agent Connect, Broker Connect and Tech Connect.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×