With the rise of sites like Redfin, OpenListings and PurpleBricks, many of our clients and first time home buyer and seller inquirers often start with, which platform should I go with and why should or shouldn't I use this particular service? The more options you have as a Buyer or Seller, the better, as Real Estate agents will hopefully compete for the opportunity to represent you in a transaction, ideally resulting in higher levels of service and greater possibilities of fee reductions or commission rebate opportunities. However, we want to remind everyone that you don't need to limit your options to a few platforms/firms in order to get what you want because everything, from listing fees to rebate incentives are negotiable.
Below are some helpful tips in case you're interested in learning more about the sites above work. We definitely encourage you to reach out directly and compare/contrast offerings purely from the costs/commissions standpoint.
As a Buyer:
1. Redfin's rebate structure fluctuates and seems to have decreased in order to make for the discount in listing fees in order to capture market share.
2. PurpleBricks also offers a flat $1000 rebate amount (less than other competitors)
3. OpenListings offers a 50% rebate (splitting half of the cooperating broker's commission and rebating half to the prospective Buyer)
As a Seller
1. Redfin currently advertises a 1% listing commission, but neglects to also mention that an additional 2.5%-3% will be offered to a cooperating broker/agent that brings an offer.
2. Purple Bricks charges a flat fee to list $3,200 + 2.5% to the cooperating broker, but while the flat fee is less, consumers have mentioned that the the principal is required to pay the fee regardless of whether the home sells or not. (i.e. if the home doesn't sell after a certain period and you decide to switch brokers)
3. Open Listings focuses primarily with Buyers
As more options present themselves, Buyers and Sellers will continue to benefit from the reduction in fees and increases in transparency and efficiency. However, we still recommend that the best way to evaluate value is to directly negotiate with any Real Estate Agent you meet. There is no use paying for the same basket of services, especially when you can leverage these publicly advertised offerings as your minimum criteria just to get to the negotiating table.
Happy Friday and will check back in after a glorious Thanksgiving holiday.
Stay informed and keep the questions coming!
1. Redfin's rebate structure fluctuates and seems to have decreased in order to make for the discount in listing fees in order to capture market share.
2. PurpleBricks also offers a flat $1000 rebate amount (less than other competitors)
3. OpenListings offers a 50% rebate (splitting half of the cooperating broker's commission and rebating half to the prospective Buyer)
As a Seller
1. Redfin currently advertises a 1% listing commission, but neglects to also mention that an additional 2.5%-3% will be offered to a cooperating broker/agent that brings an offer.
2. Purple Bricks charges a flat fee to list $3,200 + 2.5% to the cooperating broker, but while the flat fee is less, consumers have mentioned that the the principal is required to pay the fee regardless of whether the home sells or not. (i.e. if the home doesn't sell after a certain period and you decide to switch brokers)
3. Open Listings focuses primarily with Buyers
As more options present themselves, Buyers and Sellers will continue to benefit from the reduction in fees and increases in transparency and efficiency. However, we still recommend that the best way to evaluate value is to directly negotiate with any Real Estate Agent you meet. There is no use paying for the same basket of services, especially when you can leverage these publicly advertised offerings as your minimum criteria just to get to the negotiating table.
Happy Friday and will check back in after a glorious Thanksgiving holiday.
Stay informed and keep the questions coming!
