Most Americans would agree that technology has forever changed the way we do business. With the advent of real estate search apps and online property valuations, technology has truly changed the way consumers buy and sell homes.
Gone are the days when you were forced to employ a traditional, big national brokerage that charges 6% or more in Realtor fees. Now, you can choose the level of support you need to suit your specific buying or selling needs.
In this blog, we’ll show you the comparisons and differences between Redfin and a traditional real estate broker.
As a seller, it’s also smart to look into all the different ways you can save money on Realtor commissions. With average commissions of about 5.8% in the US, a typical home seller will pay about $27,000 in Realtor fees.
In order to reduce agent commissions, here are a few options you can pursue:
- Negotiate commission rates with your agent
- List "For Sale By Owner"
- List with a low commission broker like Redfin or SimpleShowing
Redfin versus Traditional Broker
With Redfin, the seller pays a 1.5% listing fee and then agrees to pay a commission to a buyer's agent (typically 2.5%-3%). Redfin does offer a 1% listing fee in some markets, but it is subject to you also buying a home with their team within 360 days of closing.
Traditional Real Estate Brokerage (e.g. ReMax, Keller Williams)
By and large, a traditional real estate agent’s livelihood depends on the commission he or she makes from the sale of your home. So, very few special deals or incentives are offered by these types of firms. The typical cost to list with a traditional brokerage is 3% of the home’s sale price plus the buyer’s agent commission of 2.5%-3%.
At SimpleShowing, we offer a 1% listing fee which includes all the services of a traditional brokerage but at a fraction of the cost. So, this means you get to save thousands of dollars in commissions ($7,500 on average) while keeping more of your home’s equity. The SimpleShowing Listing Fee does not include buyer’s agent commission which can be 2.5%-3% of the purchase price.
Redfin employs a well-diversified staff which includes real estate brokers and agents. These agents provide exactly the same services as a traditional brokerage but are paid by salary as opposed to commission. They also earn bonuses based on customer satisfaction. Redfin initially avoided assigning specific agents to specific buyers, but over time, has moved towards assigning staff that will stick with their client throughout the process.
Traditional Real Estate Brokerage
When comparing a traditional brokerage vs Redfin, a company like Keller Williams will provide you with a dedicated Agent to guide you through the entire process. Most big, national brokers have regional or local franchises in most states in the US. These agents tend to provide everything you'd expect from a typical agent, but they will charge full commission.
At SimpleShowing, we offer all the services that you’d expect from a traditional agent with a goal to provide high quality service throughout the buying or selling process. If you’re selling, your agent will offer expert pricing assistance and market your listing to get your home sold fast and for the highest price. Overall, SimpleShowing does everything that a traditional agent does except charge full commission. In addition to your SimpleShowing Agent, you’ll have 24/7 access to a dedicated support team that can be reached by phone or online chat via our website.
If you considering selling your home, take a deep dive to learn more about how agents get paid and who really pays the buyer agent commission. SimpleShowing operates in Florida, Georgia and Texas and charges a 1% listing fee, paid at closing.