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Redfin announced a new program this week that offers a small refund to homebuyers who choose to sign a buyer agency agreement with a Redfin agent.
The new “Sign and Save” program promises homebuyers a refund of 0.25 percent to 0.5 percent for signing a buyer agency agreement with a Redfin agent after their second home tour.
The brokerage started piloting the program in select U.S. cities in September, with the stated goal of saving consumers money in an increasingly unaffordable housing market as it helps Redfin agents retain clients.
“Redfin is putting money back in homebuyers’ pockets at a time when many are struggling with high prices and mortgage rates,” said Jason Aleem, Redfin’s senior vice president of real estate operations. “The concept is simple: as a Sign and Save customer you get extra savings because we know you’re serious about buying a home, and we’re serious about getting you into one.”
The standard refund through the program is 0.25 percent, so a customer who purchased a $500,000 home would get a refund of $1,250, while a customer who purchased a $2 million home would receive $10,000. Customers who purchase a luxury home through the Redin Premier service receive a 0.5 percent refund since Redfin Premier agents earn a larger commission from luxury sales.
The new initiative comes as the value of the services offered by buyer agents is questioned on the national stage, with scores of class action lawsuits such as Sitzer | Burnett and Moehrl threatening to upend how consumers pay agents nationwide.
“Homebuyers are becoming more aware of the high cost of agent fees and less apologetic about negotiating commissions,” Aleem said. “We’ve helped usher in this new era of price transparency by advertising our low listing fee and publishing the buyer’s agent commission on every listing on our website. Sign and Save is another opportunity for our agents to explain the fees involved in the transaction.”
Customers who don’t sign a buyer agency agreement can still work with Redfin agents, according to an announcement by the company.
