BrokerageIndustry News

Redfin will test reduced rebates in Boston

Maximum refund to buyers will be 33% on deals closing after Oct. 1

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Technology-based discount brokerage Redfin is experimenting with reduced commission refunds to buyers, and has announced plans to follow up on a trial run conducted in part of Los Angeles during the first quarter, with smaller refunds in the entire Boston market starting this fall.Redfin, which offers commission rebates of up to 50 percent in other markets, is scaling the rebate back to a maximum of 33 percent in Boston on purchases closed after Oct. 1, CEO Glenn Kelman said in a blog post. "Big news! Redfin Boston is upgrading our service," Kelman wrote. "Now, whenever you sign up to tour a home or meet an agent, the lead agent who negotiates your deal will also be the one who meets you on the first tour, sees the home and comes to the closing table."Redfin typically employs "field agents," who do not represent clients in negotiations, to conduct home tours. In 2008, Redfin reduced its refunds to buyers from 66 percent to 50 percent, as part of a new cost...