This motivates traditional agents to move on to the next deal as soon as a customer is under contract to buy a house.
Seattle, WA (PRWEB) August 18, 2006
Online real estate broker Redfin Corporation today launched a first-of-its-kind 100% satisfaction guarantee for real estate consumers. Separately, Redfin released survey data showing 97% customer satisfaction.
The 100% guarantee is for customers of Redfin Direct, an online home-buying program in which customers tour homes on their own and draft an offer online, with local Redfin agents handling offer advice, negotiations and closing.
As with a traditional brokerage, Redfin Direct customers can choose to work with another brokerage at any point during the home search; Redfin only earns a fee when a customer buys a home.
But unlike a traditional brokerage, Redfin also guarantees its services through closing. If a customer buys a home through Redfin but becomes unhappy during the closing process, Redfin completes the close but refunds its entire fee.
In a typical home purchase brokered by traditional agents, 3% of the home-price goes to pay the buyer’s agent, and 3% goes to pay the seller’s agent. With Redfin, the difference is that the buyer gets a refund of two thirds of the buyer’s agent commission, usually 2% of the home price. But if the buyer is unhappy with the Redfin service, the buyer gets 100% of the buyer’s agent commission.
“Traditionally, if a deal closes, an agent is paid regardless of whether the customer is happy with her real estate agent’s service,” said Redfin Director of Real Estate Operations Rob McGarty. “This motivates traditional agents to move on to the next deal as soon as a customer is under contract to buy a house.”
“But a lot happens between agreeing to initial terms and actually getting into the house,” McGarty continued. “At Redfin, we make sure you get great service all the way from offer to close, or we won’t get paid.”
Redfin (http://www.redfin.com) is the real estate industry's first online brokerage, and the only one to offer a 100% customer satisfaction guarantee. By combining maps, MLS listings, tax records and analytics, Redfin has become one of the most popular sites for people to find, buy and sell homes in Seattle and the San Francisco Bay Area. Customers who use Redfin.com to buy or sell properties earn a refund of most of the commission traditionally due their broker, and get full support in paperwork, negotiations and closing. Redfin was recently recognized for having the most innovative business model in real estate by Inman News. To give the Redfin service a try, visit http://www.redfin.com, or keep track of our daring exploits via our blog, at http://blog.redfin.com.
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