At the start of September 2019, real estate firm Redfin made a change to the way they communicate with their customers and potential customers. They have made the decision to provide more information on the homes they have listed for sale, specifically detailing how much the buyer’s agent will make upon the sale of the listed home.
According to an article published by Forbes, “…nearly 40% of recent home buyers don’t understand how their real estate agent was paid,” while 13% indicated they had “no idea” how much or how the agent was paid upon closing. With the recent announcement of the Northwest Multiple Listing Service, allowing brokers to share details of the commission deals, Redfin decided to get out in front of the trend sure to spread to other regional areas.
Perhaps buyers have become more interested in the ways commissions are negotiated after a few law suits alleging “….collusion, inflated commissions, and price-fixing, among other things.” To head off any concerns and to satisfy buyer’s desire for transparency, some agents feel that this up-front approach helps ease the minds of their customers. As one Redfin broker, Paul Reid of Boise, ID, stated, “Showing consumers the commission a seller is offering a buyer’s agent is a great win for making real estate more transparent. When a buyer has a better understanding of how his agent is being paid and the costs the seller is incurring, he can make a more informed decision on what to offer.”
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