Redfin offers homesellers another break on fees

Posted at 8:03 AM, Jun 13, 2017
and last updated 2017-06-13 11:03:30-04

San Diego is now in peak homebuying season and sellers are cashing in - except when it comes to real estate fees.

But real estate broker Redfin is offering to slash fees for home sellers who hire them for representation.

It could save a median priced home seller more than $2,500.

Here’s how it could work:

Typically, two real estate agents usually handle a deal. 

One represents the buyer - the other, the seller. 

They typically split a 5 percent commission on the final price. And it comes out of the seller's pocket. 

Redfin was already only asking for 1.5 percent commission - but it just slashed that to 1 percent.

 Mark Goldman, a San Diego State University real estate lecturer, says discount brokerages sometimes offer fewer services or less experienced agents. 

 But Redfin’s Anna Nevares says sellers don't lose anything by going with them. Their tech-heavy model allows them to charge less.

“We have so many buyers searching on our website, we know what they're looking for, so when we have a listing we know the buyers who are already looking at that listing,” she said. “We target emails to those specific buyers and we generate more interest.” 

Redfin still recommends offering the homebuyers agent 2.5 percent commission. It helps make sure they're motivated to show your home.

Redfin does charge sellers a minimum $4,500 commission.

But the median home price in San Diego County is $525,000, so most sellers would be able to take advantage of the offer if they so wish.