In a move that the brokerage says reflects its growing focus on offering savings to homesellers, Redfin has announced plans to slash or eliminate the rebate it offers to buyers whom the firm refers to non-Redfin agents, known as "partner agents." The rebate reduction will take effect Feb. 1. Redfin changes: From commission split to flat refund For closings above $200,000, the brokerage will reduce the rebate from 15 percent of a buyer's broker's commission split to a flat refund of $500. While partner agents were responsible for paying the rebate to Redfin referrals in the past (as a refund or closing credit), Redfin will now issue the rebate directly to referrals in the form of a $500 check. Buyer referrals who purchase a home for less than $200,000 with a Redfin partner agent will no longer receive any rebate at all. The changes could potentially cause partner agents to receive fewer referrals from Redfin and marks the brokerage's latest step away from a value prop...
- As of Feb. 1, buyers referred by Redfin to its 'partner agents' will receive a much smaller rebate, or no rebate at all, when they close transactions with Redfin partner agents.
- Redfin will continue to charge a 30 percent referral fee to partner agents, keeping the entire fee for itself, rather than requiring partner agents to pay a rebate -- which was traditionally half of the 30 percent referral fee -- to buyers referred by Redfin.
- Redfin will no longer lower its referral fee to 25 percent (from 30 percent) if a partner agent receives stellar customer satisfaction ratings from buyers referred by Redfin.
- The rebate reduction reflects Redfin's growing focus on offering savings to sellers, and marks the latest in a long string of cutbacks the firm has made to its rebates over the years.