Redfin opens buyer agreement rebate program nationwide
The brokerage said the program, which launched as a pilot in September, is “good for our customers, our agents and our growth as a brokerage.”
Just six weeks after announcing its buyer agreement rebate, Redfin is opening up the program to markets across the country.
How it works: Redfin's "Sign & Save" program offers clients a 0.25% rebate on the purchase price of a home if they sign a buyer agreement with their Redfin agent. The agreement must be signed before their second home tour, and the buyer must go under contract on a home within 180 days of signing the agreement. The rebate is bumped up to 0.50% on pricier homes purchased via a Redfin Premier agent.
What's different now? The program officially launched last September in a handful of pilot markets. Redfin expanded the rebate to over 50 markets in January and now is making the program available across the country, except in eight states — AK, IA, KS, MS, MO, OK, OR, TN — where commission refunds are prohibited.
Why it's notable: While several other major brokerages have expressed an interest in prioritizing buyer agreements, Redfin is one of the first to formalize and institute a nationwide buyer agreement program of this kind. This is particularly notable in the wake of the Sitzer/Burnett verdict and ongoing litigation relating to cooperative compensation.
The use of buyer agreements has been promoted by many in the industry who say the agreements not only give agents some reassurance that a client will stick with them through their homebuying process, but they also benefit consumers by providing transparency about compensation and the services being offered.
On January 1, a new law went into effect in Washington State mandating buyer agreements, which could provide a blueprint for other states to follow.
What did Redfin say? "Not only are we putting money back in our customers' pocket, we're also educating them about how real estate commissions work and how Redfin can help them win. This is good for our customers, our agents and our growth as a brokerage, which is why we're expanding it everywhere we can," Jason Aleem, Redfin's senior vice president of real estate operations, said in the announcement.
Additionally, a Redfin spokesperson shared with Real Estate News the results of a survey the company conducted in December which asked 500 agents from a variety of brokerages about their use of buyer agreements.
When asked how often they require buyer agreements for touring properties, more than 30% of the agents surveyed said they use them every time, while 28% responded "sometimes," 22% said "rarely" and 18% said "never."