Seattle-based brokerage Redfin has expanded its commission-based payment model, Redfin Next, to agents in Chicago, Connecticut, Dallas, Miami, New York, Palm Beach and Washington, D.C. Redfin execs said Redfin Next will help them navigate market “ups and downs,” including the NAR settlement.
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Seattle-based brokerage Redfin has expanded its commission-based payment model, Redfin Next, to agents in Chicago, Connecticut, Dallas, Miami, New York, Palm Beach and Washington, D.C.
Redfin Next enables agents to keep their full-time W-2 status and traditional benefits while getting variable commission splits based on the average home price in their market. Agents in Los Angeles, San Francisco and Orange County will get max commission splits of 75 percent, while agents in the newest lineup of markets will max out at 70 percent, a company spokesperson explained.
Redfin still covers agents’ business expenses, provides a 401k alongside medical and stock equity benefits, and offers an array of technology, support programs and leads.
Jason Aleem
“We’ve never seen more enthusiasm for a new compensation plan from agents than we’ve seen with Redfin Next,” Redfin Senior Vice President of Real Estate Sales Jason Aleem said in a written statement on Thursday. “No other brokerage can offer agents a big traditional split and all the benefits, support, technology and customer introductions that we provide here at Redfin.”
“These resources are what agents need to serve buyers and sellers well, and let those buyers and sellers keep more of their hard-earned dollars,” he added.
Aleem went on to address the National Association of Realtors’ shocking decision to settle several buyer-broker commission lawsuits, including Sitzer | Burnett. The settlement, which still awaits approval by the courts, includes a $418 million payout and the overturning of the cooperative compensation rule.
Inman deputy editor Andrea Brambila explained on Wednesday that 93 brokerages with more than $2 billion in annual sales volume — including Redfin — won’t be automatically covered in the deal. However, some still have the option of buying into it.
The brokerage is also facing an antitrust commission suit in California that covers consumers who paid “a buyer-broker commission, directly or indirectly, to Redfin or a Redfin buyer agent involved with the sale of residential property between October 2019 and October 2023.”
“In the wake of the NAR settlement, customers are telling us this is more important to them than ever before,” he said. “We’ve always been focused on giving consumers a better deal, so we’re well equipped to support them.”
“We believe Redfin Next will be transformational for our brokerage, helping us retain our best agents, recruit top talent, and grow market share faster through both the ups and downs in the market,” he added.
With these additions, Redfin Next is now available in 11 markets nationwide. Agents in the latest cohort of Redfin Next markets will switch to the plan on May 5.