BrokerageIndustry News

Redfin claims low-cost model is working

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Buyers who work with Redfin, a company that offers deep discounts for real estate services, paid less for homes than buyers represented by other companies -- even before considering the company's commission refunds, according to Redfin's analysis of company and multiple listing service data. Glenn Kelman, Redfin CEO, said the report validates the company's business model while refuting the claim made by some real estate professionals that money that consumers save by choosing a low-cost real estate company can be more than offset by the money lost in other aspects of the transaction. "The centerpiece of traditional agents' argument against Realtors is that any commission refund is offset by a negotiating disadvantage," he said, while the company's analysis found that "Redfin agents negotiate better." These revelations will no doubt become a source of controversy in the real estate industry, he added. The company report concludes that Redfin's buyer clients paid slightly less than the ...