Seattle-based brokerage Redfin has expanded its commission-based payment model, Redfin Next, to agents in Chicago, Connecticut, Dallas, Miami, New York, Palm Beach and Washington, D.C. Redfin executives said Redfin Next will assist them Responding to the “ups and downs” of the market, including the NAR Settlement Agreement.
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Seattle-based brokerage Redfin Expanded commission-based payment modelRedfin Next, for agents in Chicago, Connecticut, Dallas, Miami, New York, Palm Beach, and Washington, D.C.
Redfin Next allows agents to maintain their full-time W-2 status and traditional benefits while earning a variable commission share based on the market’s average home price. A spokesperson for the company explained that agents in Los Angeles, San Francisco and Orange counties will receive up to 75% of the commission share, while agents in the newest market lineup will receive up to 70% of the commission share.
Redfin still covers agents’ business expenses, provides 401k and health and stock equity benefits, and provides a range of technology, support programs and leads.
Jason Alim
“We have never seen agents so enthusiastic about Redfin Next’s new compensation plan,” Jason Aleem, Redfin’s senior vice president of real estate sales, said in a written statement Thursday. “No other brokerage can offer agents traditional Large cut and all the benefits, support, technology and customer introductions we offer at Redfin.”
“These are the resources agents need to serve buyers and sellers well and allow those buyers and sellers to keep more of their hard-earned money,” he added.
Alim went on to talk about the National Association of Realtors’ shocking decision to settle several buyer’s agent commission lawsuits, including Caesar | Burnett. The settlement, which is still awaiting court approval, includes $418 million in damages and overturns cooperative compensation rules.
Inman associate editor Andrea Brambila explained Wednesday that the 93 brokerages with more than $2 billion in annual sales, including Redfin, will not automatically be included in the deal. However, some people still have the option to buy it.
The brokerage is also facing an antitrust commission lawsuit in California that covers consumers who “pay buyer’s broker commissions, directly or indirectly, to Redfin or a Redfin buyer’s agent involved in the sale of residential properties.”
“After the NAR settlement, customers told us that this was more important to them than ever,” he said. “We’re always working to provide consumers with better deals, so we’re well positioned to support them.”
“We believe Redfin Next will be transformative for our brokerage business, helping us retain the best brokers, recruit top talent and grow market share faster through the ups and downs of the market,” he added.
With these new features, Redfin Next is now available in 11 markets across the country. The latest group of agents in the Redfin Next market will switch to the program on May 5.
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