Nearly Half of Buyers Save on Real Estate Fees
One in Four Home Sellers Now Sells Without a Full-Service Agent
SEATTLE–(BUSINESS WIRE)–Sixty percent of people who sold a home in the past year got a discount
on the commission they paid to their real estate agent, according to a
survey of more than 2,000 people conducted in June by SurveyMonkey
Audience and commissioned by Redfin (www.redfin.com),
the next-generation real estate brokerage.
Among homebuyers, 46 percent said their agent gave them a refund or
closing cost contribution of more than $100, with the average savings
amount for that group being $3,693. Last year, 37 percent of buyers said
they received savings from their agent worth $500 or more.
“While market forces are driving home prices up, innovation is helping
to drive commissions and fees down,” said Redfin chief economist Nela
Richardson. “These survey findings suggest that the industry is becoming
more dependent on technology and less dependent on the local agent as
the sole source of information about homes for sale. The fact that
savings are so widespread indicates that agents and brokers are adapting
by using technology to work more efficiently and charge less money.”
Findings about for-sale-by-owner (FSBO) and other alternative approaches
to buying and selling homes include:
A quarter of people who sold a home in the past year did so without
the help of a full-service agent:
- 15% of sellers used a limited-service agent.
10% of sellers listed their home without an agent’s help. This is
slightly higher than the latest figure reported by the National
Association of Realtors, that FSBOs accounted for 8% of home sales
People selling million-dollar-plus homes were the most likely to use
the FSBO approach, with 23% going that route.
More than half of people (54%) who sold without a full-service agent
did so to save money. For those whose homes sold for $750,000 or more,
the most commonly cited reason was that they didn’t think a
full-service agent was necessary (41%).
16% of homebuyers bought without an agent’s help, little changed from
69% of survey respondents said they are open to an alternative to the
traditional real estate service, up from 64% last year.
Asked about agent incentives, 52% of respondents said they prefer a
purely commissioned agent. One-third of respondents dislike the idea
of a purely commissioned agent.
70% of people who bought or sold a home with Redfin in the past year
said they would recommend their agent to a friend or colleague, little
changed from last year.
57% of people who bought or sold with other brokerages in the past
year said they would recommend their agent, up from 49% last year.
For the full report and methodology including more data and insights,
Connect with Redfin
is the next-generation real estate brokerage, combining its own
full-service agents with modern technology to redefine real estate in
the customer’s favor. Founded by software engineers, Redfin has the
country’s #1 brokerage website and offers a host of online tools to
consumers, including the most accurate home-value estimate online, the Redfin
Estimate. Homebuyers and sellers enjoy a full-service,
technology-powered experience from Redfin real estate agents, while
saving thousands in commission. Redfin serves more than 83 major metro
areas across the U.S. The company has closed more than $31 billion in
home sales, and saved customers more than $335 million in fees, and
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