Redfin pays its real estate agents based on customer satisfaction, rather than fees and commission, which often saves the client money. Because the company incentivizes customer satisfaction, Redfin agents have a reason to provide good service, and clients benefit from the high level of customer attention. Redfin uses digital marketing heavily, which saves money on the company side and ultimately on the client side as well.
Virtual tours are another perk of Redfin, though many other companies have also adopted the practice. Using virtual tours maximizes the number of showings on a particular home, which speeds up the selling process and minimizes the overall cost. Fully virtual marketing is the trend in the industry, as consumers prefer to make full real estate transactions online.
Instead of paying agents commission, Redfin surveys each client and posts the results of all surveys online. This makes the company transparent with regard to consumer opinion. It also makes Redfin affordable because those surveys are the basis for agent commissions. Redfin agents earn an annual salary, making this commission structure viable.
Founded in 2004 by David Eraker, David Selinger and Michael Dougherty, Redfin is based in Seattle, Washington. In addition to its work for clients who are buying and selling homes, Redfin also conducts research studies and publishes those studies in prominent news outlets. The company website includes a resource link for buyers and sellers that gives access to statistics, tips and trends.