9/9/2019 Redfin Commerical Actress
Last night I saw it while watching the news and didn't think much, but then I had to rewind and pause a few times to read the fine print. List your house for 1.5%. Savings of $23K flashed by the screen quickly.
After rewinding and pausing to read, the list at 1.5% does not included buyers agent commission and if buyer is not represented, an increase of 1% in commission will be added. When it showed a saving of over $23K in commissions, that was on a sliding bar and the sliding mark was close to 1.5 million price. I'd post it here, but I could not find the new commercial online and Redfin's website does not give too many details. Something about a rebate back to the buyers and sellers?? Really confusing if you ask me. What are your thoughts?
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Do you think this business model succeed? If you saw the commercial, did you think it was a little deceptive with all the fine print? It is a discounted brokerage that is proven. I am surprised they have not gone public.They had 15% of total closing in SF South Bay with more buyers than sellers. Yes, the agents gave back to buyer a% in states that is legal (almost most states in the US allows rebate to customers). Their agents do more professional work on salary up to 6 figures ($) based on customer reviews.
The contractor agent splits commission with buyer, their broker and RF. RF provides good leads and have been screened by RF staff. An agent can expect 50-75% conversion rate. They have showing agents who drive people around for a few $100 a day.
I know a few lawyers-brokers claim they love it doing $100-300M sales a year w/o spending market cost. Many use that experience going on their own. In other words, agent spend '0' on marketing gets 75 homes sold (that is prob $50-80M here) first year. I doubt any new agent can accomplish that volume otherwise.
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