Redfin Will Offer Area New Way to Buy Homes

July 10, 2007 - 12:20pm

Neal Augenstein, WTOP Radio

WASHINGTON - Three percent goes to the seller's agent and 3 percent to the buyer's agent. The traditional real estate rule could be going by the wayside as a new player enters the market.

Redfin, an online real estate service, cuts out the local broker. It will enter the market next month, The Washington Business Journal reports.

The Seattle-based Redfin Corp. is expected to come to the D.C. and Chicago markets soon, according to the company's Web site.

Using Redfin, you go online and have access to the Multiple Listing Service. But, rather than pay 6 percent in commissions to real estate agents, Redfin charges sellers a flat fee of $3,000 up front or $4,000 at closing. For the buyer, the company rebates two-thirds of the commission. Giving rebates is prohibited in some states, but not in D.C., Maryland or Virginia.

Realtors aren't crazy about Redfin. Some say the company shouldn't have access to the MLS. They say the company is just skimming data and profits from others, not selling real estate. Others say Redfin doesn't offer the human touch to helping people find or sell homes.

Neal Augenstein, WTOP Radio

WASHINGTON - Three percent goes to the seller's agent and 3 percent to the buyer's agent. The traditional real estate rule could be going by the wayside as a new player enters the market.

Redfin, an online real estate service, cuts out the local broker. It will enter the market next month, The Washington Business Journal reports.

The Seattle-based Redfin Corp. is expected to come to the D.C. and Chicago markets soon, according to the company's Web site.

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