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Redfin is responding to a newfangled startup that is hope to upendthe way citizenry search for and buy homesby offering a flat - fee service .
On August 29 , TechCrunch reported that a inauguration called Landian had emerged from stealth to offer homebuyers a way to tour and make crack on homes through a flat - fee service , rather than ante up commission .
That company was co - founded by Josh Sitzer , who sued the National Association of Realtors ( NAR ) in a watershed case over agentive role commissions . Under the resultingsettlement , the NAR fit to pay $ 418 million in damages and to abolish the Participation Rule , which required sell - side agents to make an go of compensation to buyer brokers . That and other rule change are expected to transmute the actual estate food market .
Redfin is skeptical about the flat - fee model , although it described Landian as “ a blood brother in sleeve , eager like us to give consumers a better spate . ” The 18 - twelvemonth - old company once tried a similar theoretical account , and explains why it did n’t put to work :
“ When we attempt this before in a ferociously competitive housing securities industry , we struggled to win on behalf of customers the offer - writing broker had n’t get together , for listing that agent had n’t seen , ” a voice tell . “ We also learn that when customers want to call on the expertise of one someone , morning , noon , and Nox , you have to pay that person very , very well . For now , we believe we can propose homebuyers the best economic value by using Redfin.com to eliminate the single largest cost of being an agent , which is finding customers , and by pairing the industry ’s expert agents with loaning and championship service . ”
Redfin points out that it institutionalize commissions as miserable as 1 % to home Peter Sellers and as low-toned as 2 % to homebuyers , and claims to have saved its client $ 1.6 billion in fee .
“ Unlike Landian , we do n’t agitate for turn or require client to employ an agent sight unseen , ” a interpreter tell .
Redfin decease on to say that it “ may experiment again ” with a flat - fee itemized service . But it ’s wary .
