Half a percent might not seem like much, but Redfin has gotten a lot of mileage out of snipping that from its 1.5 percent list-side commission in some markets. Now the high-tech brokerage, which went public at the end of July, has rolled out this lower, 1 percent fee to 18 additional markets, including New York City, Los Angeles, Portland (Oregon), Houston, and the entire states of New Jersey and New Mexico.
Tech giants like Zillow Group, Facebook and Google are charging increasing fees for access to a growing share of homebuyers and sellers and tipping the scales in favor of agents and teams who can spend big, invest in technology and operate at lower margins. Smaller agents and big brokerages are under rising pressure to keep up.
When homebuyers begin their search, they’re not necessarily thinking most about price, size and bedroom count, said Creed Smith, a Denver-area broker and real estate technologist.