WARNING: Unlawful Kickbacks, Broker-to-Broker Collusion, False Marketing, Wire Fraud, Price Fixing.
Redfin is a broker-to-broker collusion scheme, where "partner agents" unlawfully agree to pay massive kickbacks to receive your information and engage in market allocation, consumer allocation, false advertising, unlawful kickbacks, wire fraud, and price-fixing practices in violation of, inter alia, 18 U.S.C. § 1346, 18 U.S.C. § 1343, 15 U.S.C. § 1, 15 U.S.C. § 45, 12 U.S.C. § 2607, 12 C.F.R. § 1024.14. As a consumer, you will always significantly overpay for Realtor commissions subject to hidden kickbacks and pay-to-play steering promoted in this scheme.
United States federal antitrust laws prohibit consumer allocation and blanket referral agreements between real estate companies.
Be smart; do not allow your information to be "sold as a lead" to a double-dealing Realtor in exchange for massive commission kickbacks paid from your future home sale, or your future home purchase.
A multi-state broker, a full-service company rebates buyer's part of the commission it receives, where allowed, and provides listing savings to sellers. In some cases, this company acts as an Internet referral fee network where it is unable to provide real estate services.
Redfin offers listing savings to sellers (1% to 1.5% listing fee) and commission refunds to buyers where allowed by State law (21% rebate approximate.). Redfin works with about 3,100 Partner Agents in regions where it has no direct representation in exchange for a 30% referral fees.
Redfin is one of the largest real estate agents in the United States that offers service of a traditional agent with a competitive commission. It is important to separate Redfin services into three distinct categories: a real estate agent, a referral network and a direct cash buyer.
This review is focused on its operations as a real estate agent and a referral network. RedfinNow is further segregated into its own category because it operates as an investor and not a professional agent service model built to represent consumers.
Redfin went public in 2017 with an IPO that has raised $138 million and have thus saved consumers millions in commissions over typical rates offered by traditional real estate brokers. However, Redfin’s operations as a referral network result in an inefficiency known as reverse competition and possible price fixing. Such practice may result in lower quality of service and higher commissions due to added fees.
Agent Listings
Redfin Agents are salaried employees who are also paid bonuses based on client feedback and are not motivated by commissions. Redfin Agent Listing includes posting home on the MLS and MLS Aggregator services, professional photos, 3D tour and all typical services offered by a traditional real estate agent.
Redfin gives sellers access to a well-designed dashboard to track buyers viewing your home and other communication features.
Referral agents pay 30% of their commission back to Redfin when they close a transaction. Once Redfin refers a customer to a Partner Agent, that agent, not Redfin, represents the customer from the initial meeting through closing. In the past, Redfin had actively dictated that Partner Agent commission listing rates are set at 1.5%, or that Partner Agents issue rebates set at 15% to buyers (15% went to Redfin as a kickback.) Redfin has since revised this policy because it violates antitrust law.
In the United States, all independent brokerage fees are always negotiable and each real estate agent establishes its own policy for a fee structure, amount of commissions, and the sharing of any listing commissions.
Price fixing is prohibited by antitrust legislation. To fix, control, recommend, suggest or maintain commission rates or fees for other agents' services is an improper practice. Redfin Corporation has recently stopped such blatant price fixing strategy, where a statement on the company’s website now reads: "Since Partner Agents aren't employed by Redfin, we can't guarantee our 1%–1.5% listing fee or offer a Redfin Refund for customers who work with a Partner Agent." This statement means not only that Redfin "can't guarantee" these savings, but also that consumers shouldn't expect to receive savings from a Partner Agent.
Redfin still heavily engages in market-allocation and consumer brokering practices in their efforts to earn referral fees, instead of actually providing representation services. In 2019 Redfin has made a massive move by allowing with RE/MAX brokerage to participate as Partner Agents, where consumers are "sold as leads" to RE/MAX brokers for 25% cut of their commission.
Consumers a highly likely to overpay for listing commissions and receive little or no refund using Redfin Partner Program, when buying or selling a home, because the added 30% referral fee makes it impossible for Partner Agents to negotiate a fair market rate.
By utilizing Partner Agents, consumers are not just getting nothing, but are being subjected to thousands and sometimes tens of thousands in useless fees paid for the privilege of getting connected to a random agent.
Redfin Partner Program is one of the worst consumer brokering programs in the market because it implies that consumers will get a lower listing rate, or a refund from the Partner Agent shown on the Redfin website, but due to price fixing antitrust law this is not true.
By negotiating with an agent directly, or using HomeOpenly Open Marketplace, consumers are able to receive such savings, because HomeOpenly has a 0% referral fees structure and we are legally able to advertise rates for thousands of independent agents who offer all sorts of independently set savings – refunds, listing rates, or flat fees.
In fact, any real estate agent who uses Redfin Partner Program is able to freely advertise their services, refunds and/or listing rates on HomeOpenly and bypass excessive referral fees set by Redfin, saving consumers 30% in referral fees. Consumers should absolutely avoid using Redfin Partner Program agents.
Concierge Service
In November 2017 Redfin has launched a program called Concierge Service in select areas that offer home sellers added benefits of coordinating, supervising and paying for services such as deep cleaning, painting, staging, and landscaping in exchange for a 2% listing fee.
WARNING: Unlawful Kickbacks, Broker-to-Broker Collusion, False Marketing, Wire Fraud, Price Fixing.
Open Listings is a broker-to-broker collusion scheme, where "partner agents" unlawfully agree to pay massive kickbacks to receive your information and engage in market allocation, consumer allocation, false advertising, unlawful kickbacks, wire fraud, and price-fixing practices in violation of, inter alia, 18 U.S.C. § 1346, 18 U.S.C. § 1343, 15 U.S.C. § 1, 15 U.S.C. § 45, 12 U.S.C. § 2607, 12 C.F.R. § 1024.14. As a consumer, you will always significantly overpay for Realtor commissions subject to hidden kickbacks and pay-to-play steering promoted in this scheme.
United States federal antitrust laws prohibit consumer allocation and blanket referral agreements between real estate companies.
Be smart; do not allow your information to be "sold as a lead" to a double-dealing Realtor in exchange for massive commission kickbacks paid from your future home sale, or your future home purchase.
A multi-state broker rebates buyer part of the commission it receives. In some cases, Open Listings acts as an Internet referral service where it sets rebates for independent real estate brokers that do not work for Open Listings directly.
Open Listings offers home buyers a 50% commission rebate. Open Listings also requires a $5,000 minimum commission. Minimum commission requirement negates refund for homes priced under 150,000 USD.
In some cases, Open Listings represents clients directly. However, Open Listings Referral Network (Partner Agents) is a referral process that connects buyers with third-party real estate agents in exchange for an undisclosed commission split or a referral fee.
A Partner Agent who is employed by, or works with their own brokerage gets referred by Open Listings at their own discretion, as a blind match. Open Listings keeps referral fee amount hidden and does not disclose the split amount it receives from real estate agents who operate under their own license – this practice is highly deceptive and is designed to deceive consumers into thinking that Open Listings is the brokerage they are actually working with.
By engaging with Open Listings consumers authorize them to share personal information and home search history with any Partner Agent, regardless if a consumer wants to work with an Open Listings agent directly.
When shopping for a Real Estate Agent, the price alone is not as important as being able to make an informed choice about representation. Open Listings Referral Network is a poor choice for Real Estate Agents and consumers due to lack of transparency.
Open Listings’ operations as a referral network result in an inefficiency known as reverse competition and possible price fixing. Such practice may result in a lower quality of service or higher commissions.
Once Open Listings refers a customer to a Partner Agent, that agent, not Open Listings, represents the customer from the initial meeting through closing. Open Listings dictates that Partner Agent rebates 50% of their commission in order to receive a referral, while Open Listings takes a commission cut after the transaction is complete.
In the United States, all independent brokerage fees are always negotiable and each real estate agent establishes its own policy for a fee structure, amount of commissions, and issuing rebates to consumers.
Price fixing is prohibited by antitrust legislation. To fix, control, recommend, suggest or maintain commission rates, rebates, and fees for other agents' services is an improper practice.
Open Listings does not represent home sellers, but the company was acquired in 2018 by a direct home cash buyer: Opendoor.
Opendoor does not represent home sellers either, it is a real estate investor who buys homes from consumers and resells them at a profit; this practice is known as house-flipping.
When working with Open Listings, consumers may be pressured to use Opendoor by their Open Listings real estate agent. There is absolutely no requirement for anyone using Open Listings when buying a home to sell their home to an Opendoor.
As buyer’s agent Open Listings’ job is to represent consumers when making a purchase of a new home, it should not advise consumers on their existing home listing, unless a separate listing agreement exists.
Real estate agents are required by law to place their client’s interest before their own. Consumers are encouraged to read our full review for Opendoor before using the house-flipping service.