1,052,056
Okay this is what you tell him. Seriously dude? Do you know how weird Arizona is as a state? Do you want to take the risk of not knowing enough about your purchase because you're dealing with an agent that probably doesn't know anything?
Do you know how many unrepresented buyers and fsbo's we hear from with nightmare stories because they didn't have a full service agent?
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Steven Nickens
Wailea, HI
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Debbie Reynolds, C21 P...
Clarksville, TN
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Anthony Acosta - ALLAT...
Atlanta, GA
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Nick Vandekar, 610-203...
Downingtown, PA
-
Maria Sapio
Carlisle, PA
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Michael Jacobs
Pasadena, CA
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Kathleen Daniels, Prob...
San Jose, CA
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Lyn Sims
Schaumburg, IL
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Candice A. Donofrio
Fort Mohave, AZ
921,504
Your friend is right. The REFIN model is to provide rebates to the buyer from the buyers agent compensation.
At closing the seller is always thrilled to see the compensation the SELLER paid being handed to the buyer.
The REDFIN model is very much a 'no-touch' approach to real estate. The competent buyer (they all think they are) does all the leg work, the agent takes the order and is compensated accordingly with the balance going stright into the hands of the buyer.
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Michael Jacobs
Pasadena, CA
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Kathleen Daniels, Prob...
San Jose, CA
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Lyn Sims
Schaumburg, IL
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Candice A. Donofrio
Fort Mohave, AZ
5,104,931
I believe Redfin refunds a portion of their earned commission back to the buyer as a credit at closing. If your friend is not an agent, he can't earn any commissions or referral fees.
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Richard Weeks
Dallas, TX
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Fred Griffin Florida R...
Tallahassee, FL
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Michael Jacobs
Pasadena, CA
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Lyn Sims
Schaumburg, IL
1,502,858
I'm reading an article at: https://wallethacks.com/buying-a-home-with-redfin-vs-full-service-agent/ and the comments are pretty interesting. This one below really gives a nice summary. Basically, you get the commission rebate, but you do all the searching and the agent gets paid a salary regardless of if you complete the transaction or not... so therefore less incentive to make it work.
Portion of the comment most of use:
"If you are a serious buyer, find a good agent and hire them. Otherwise get paid by REDFIN to do your own work. Of course you can find a great home. Remember there is a difference between an agent that only gets paid with a completed transaction and one who gets paid a salary. With Redfin you’re the only one who does not get paid if the transaction fails. Weather you’re the buyer or the seller. The redfin agent gets paid."
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Candice A. Donofrio
Fort Mohave, AZ
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Michael Jacobs
Pasadena, CA
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Kathleen Daniels, Prob...
San Jose, CA
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Bob Crane
Stevens Point, WI
3,344,906
You have lots of great comments here. I like Ryan Huggins - Thousand Oaks, CA straight from the book.
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Candice A. Donofrio
Fort Mohave, AZ
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Michael Jacobs
Pasadena, CA
-
Ryan Huggins - Thousan...
Thousand Oaks, CA
6,392,899
After investing for 30 years, I know the value of hiring good representation, I share this with all who are considering a shortcut.
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Michael Jacobs
Pasadena, CA
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Roy Kelley
Gaithersburg, MD
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Bob Crane
Stevens Point, WI
2,781,013
There are many ways to skin the cat just makes sure you don't skinned too
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Michael Jacobs
Pasadena, CA
7,835,266
I like the response by Ryan Huggins - Thousand Oaks, CA.
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Michael Jacobs
Pasadena, CA
-
Ryan Huggins - Thousan...
Thousand Oaks, CA
2,684,009
Does Arizona allow commission rebates to Buyers?
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Michael Jacobs
Pasadena, CA
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Lyn Sims
Schaumburg, IL
1,310,972
Redfin offers a rebate to buyers. It is offset by a poorer quality job done in representation? You can only find out the hard way.
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Michael Jacobs
Pasadena, CA
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Nina Hollander, Broker
Charlotte, NC
4,571,756
Is your friend an agent. If he was in Colorado would this question be easier for you to answer?
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Anthony Acosta - ALLAT...
Atlanta, GA
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Ryan Huggins - Thousan...
Thousand Oaks, CA
519,324
Redfin is just one company that offers rebates. I've written a thousand times that the first priority a buyer or seller should set is to find the highest quality, experienced and knowledgeable agent possible. If in that pursuit, they also offer some rebate, that's up to them. By putting a rebate ahead of quality, you may end up with neither.
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Teri Buchanan
Napa, CA
2,220,323
564,494
I would call Candice A. Donofrio and voice record her response and then play it for your friend...
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Candice A. Donofrio
Fort Mohave, AZ
643,875
everyone wants a "deal", I believe the better question is what is he giving up to get "a commission back" and no doubt the value is much greater.
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Michael Jacobs
Pasadena, CA
1,844,171
He does get part commission back but I don't know what it is. Why would he work with someone who would do that? Would he give back 1/2 his salary per hour? What's the benefit then or what's the scoop?
No one is seasoned there. If you don't care ... then go for it.
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Michael Jacobs
Pasadena, CA
2,061,096
Redfin does offer rebates to the sellers in those states where it is allowed.
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Michael Jacobs
Pasadena, CA
87,920
1,045,440
Well REDKIN offers rebates but they aren't worth the lost value of having Experienced, Expert buyer representation. The rebates avg according to REDKIN are only about $2k. Personally I've been able to save my recent Home Buyer clients on average more than 5 times that rebate value ;-)
4,882,349
4,800,082
3,071,489
4,319,419
Will Hamm - I almost asked this question with a slightly different take. I'd say, that's their value proposition (or lack of value proposition!) as price and cashback become important to them!
Work with someone who is really 'service' oriented and who works for the buyers!
3,986,258
Everyone thinking they know the ins and outs of this profession and then getting taken to the cleaners
3,988,007
You get what you pay for or in this case what you don't pay for. Buyers trying to get rebates learn expensive lessons in the end.
1,622,432
It is the only benefit: 1% to get back. But the price: working with R assigned agent. Younger people do not care about relationship, just about saving.
5,215,873
1,292,363
They keep changing the rules on how much they give back, better to get proper representation and make the savings in the negotiations.