Realty One Group
RDFN, a technology based discount real estate brokerage, announced in August 29, 2019 it will publish the commission offered to the buyer's agent for homes that his agent is hired to sell on its website. According to the company: More than half of recent home buyers don't fully understand how their agent was paid, according to a recent survey. Of people who successfully bought a home in the last year, 38% had some idea how much money my agent made on my transaction, how the amount was determined and who paid it," while 13% responded that they had "no idea."
"The Multiple Listing Services that agents use to share listing data are required to follow the lead of the Seattle-area MLS and let brokerage websites publish the commission each listing pays a buyer's agent," "But with more than 20,000 homes listed for sale each year by a RDFN doesn't have to wait for the MLS to give us permission to show the commissions offered to buyers' agents on our own listings. Today, for most of the homes that it listed for sale ourselves, Site visitors can now see exactly how much of a commission the homeowner is offering the agent representing a buyer of that listing."
"This could lead home buyers to be as careful about commissions as sellers already are," Kelman continued. "We've spent more than a decade trying to compete not just on the quality of our service to home buyers, but on price, by refunding part of our commission back to the home buyer.
It makes sense that buyers who recently sold a home have a better grasp on real estate commissions. Sellers are likely to have more home purchase experience than a 1st time home buyer. They typically discuss the commission with their agent because they pay these costs more directly.
When a home buyer purchases with an agent, a few brokerages gives the buyer a portion of the commission it earns back to the buyer in the form of a credit back or price reduction. The refund is only available where permissible by by State law. Many local brokerages the brokers insist that they are expected to charge full commission on their employment contract. They are not discount brokerage like Z and R. To compete for sales RDFN reported a second-quarter loss of $12.6 million, or 14 cents a share, in the quarter. Meanwhile Wall Streets analysts perceive the company stock as AVOID, or SELL in the mean time.
What are your thoughts about company style that is disruptive to the industry?
Sam Shueh (408) 425-1601
Silicon Valley Realtor
Sam Shueh Realtor
I've called San Francisco South Bay home for over many years. We love this area and all it has to offer, and I enjoy sharing what I know about homes. I documented in several books about Silicon Valley history. I have much expertise in real estate...please give me a call.
Silicon Valley Realtor Sam Shueh Website (Four-O-Eight) 425-1601