How does Redfin calculate the commission refund?
First, we calculate the total buyers’ agent commission on the home. That’s equal to the mutually-agreed purchase price of the home times the buyers’ agent commission percentage. For example, a home that sells for $500,000 with a 3% commission would have a total buyer’s agent commission of $15,000. Then we refund half of that amount back to you, and keep half. In the example above, the Redfin refund to the buyer would be $7,500, and Redfin would keep $7,500. Our minimum fee is $5,500. If the seller pays less than $11,000 in commissions, we still take $5,500 as our fee. Note that the commission refund that is shown on the Listing Details page for a home assumes that the commission is 3%. Most commonly, commissions are 3%, but in many cases they might be 2.5% or even lower. Because of MLS rules, we aren’t allowed to display the real commission amount until you make an offer on the home. Read more about how commissions work.
