ZipRealty eliminating buyer rebates 
Company will continue to offer listing services below typical going rate
By Matt Carter, Friday, July 1, 2011.
After closing offices in 12 markets and shedding 700 agents during the first quarter, ZipRealty says it will no longer offer commission rebates to buyers in the 23 markets where it continues to operate brokerage offices. The move is part of an overall strategy to achieve profitability.
The decision to eliminate buyer rebates -- a hallmark of the company since it was founded in 1999 -- follows pilot testing in four markets. At the end of January, ZipRealty stopped offering buyer rebates in Austin, Texas; Raleigh-Durham, N.C.; Richmond, Va.; and Vancouver, Wash.
ZipRealty CEO Lanny Baker said that buyer rebates were instrumental in establishing the brokerage's name and market share.
But the pilot testing and customer surveys demonstrate that the company's website -- which offers sophisticated listings searches and market evaluation tools -- and the experience and skill of its agents "represent a great value to consumers without the rebate."
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