The changes for Seattle have taken place. For the majority of people in the Seattle market, the price increases are very steep - the truth lies in the math:
$365,000 House (Seattle median)
- 3% commission = $10,950
- Redfin 2.0 refund = $4,950 (buyer is paying $6,000 for service, $6k min rule)
- Redfin 3.0 (28.3% refund) = $3,098 (buyer is paying $7,852 for service)
- This is a price increase of 31%
$400,000 House
- 3% commission = $12,000
- Redfin 2.0 (50.0% refund) = $6,000 (buyer is paying $6,000 for service)
- Redfin 3.0 (30.5% refund) = $3,671 (buyer is paying $8,329 for service)
- This is a price increase of 39%
$500,000 House
- 3% commission = $15,000
- Redfin 2.0 (50.0% refund) = $7,500 (buyer is paying $7,500 for service)
- Redfin 3.0 (35.8% refund) = $5,364 (buyer is paying $9,636 for service)
- This is a price increase of 28%
$600,000 House
- 3% commission = $18,000
- Redfin 2.0 (50.0% refund) = $9,000 (buyer is paying $9,000 for service)
- Redfin 3.0 (38.7% refund) = $6,967 (buyer is paying $11,033 for service)
- This is a price increase of 23%
While the touted Redfin 3.0 16% average price increase across all tiers may be an accurate number, most people will likley fall into the above price ranges where the price increases are much, much higher.
**Edit - Redfin slightly changed rebate amounts upward shortly after this post. Although the amount of rebate change is negligible, it means the numbers shown here will have a small amount of variance from new actuals.
