Redfin announced yesterday that they’ve overhauled their listing program throughout their service areas.
Redfin agents will now offer in-home listing consultations, provide pre-listing recommendations, host open houses & private tours, post a personalized agent “for sale” sign, print flyers, aggregate listings on 3rd-party websites and implement on online system for agent feedback. Essentially, Redfin services have been revamped to match those offered by traditional full-service companies.
As a result of the expanded services, Redfin has modified its fee structure. The new listing fee is 1.5% (4.5% when factoring in a 3% buyer agent commission) with a minimum of $5,500. Previously, they charged either $5,000 or $7,000 depending on the level of service provided.
I think this is a positive move on Redfin’s part. Though, as the scrappy upstart matures and grows, expanding its services and market areas (they just launched in Phoenix), they are seemingly morphing more and more into a traditional discount real estate company. On a cost side, Redfin’s fee is lower than what most brokerages charge. However, as fees are negotiable their advantage is less apparent than before since many full-service agents list for less than the norm as well. Redfin’s superior technology and customer feedback/reviews sets them apart, yet as other companies begin to follow suit, the lines of differentiation are becoming blurred.