The Redfin Advantage
In Redfin's second year as an online real estate brokerage, Redfin customers in the San Francisco Bay Area and Seattle paid on average $3,594 less for their home than customers who used other brokerages. When combined with the average commission refund of $10,520, Redfin customers saved over $14,000. In addition, customer satisfaction was high: customers reported that 95% would recommend Redfin to a friend.
Learn about more about how to buy a home with Redfin.
The Redfin Advantage exists because Redfin's practice of involving customers at every stage of the deal leads to better negotiating results. Our customers are able to negotiate a better deal because they are actively involved throughout the entire transaction, in partnership with their Redfin real estate agent. We also believe the Redfin Advantage exists because we pay our agents to do the right thing: Redfin Direct Agents earn salaries and bonuses based on customer-satisfaction surveys, not commissions.
You can download and read the entire report on the Redfin Advantage 
or you can scan the executive summary:
- Across the three counties included in this study, King County, Washington, and San Francisco and Santa Clara counties in California, Redfin buyers paid on average 0.603% less for their home than buyers who used other brokerages. This negotiating advantage saved our buyers an average of $3,594.
- The total Redfin Advantage, combining the average negotiating advantage and the average commission refund of 1.934% for the three counties was 2.537%. The total savings for the average Redfin customer was $14,114.
- In King County, Washington, Redfin buyers paid on average 98.885% of the listing price, while people who purchased a home through other brokerages paid 99.383% of the listing price. The difference of 0.498% represents an average savings of $2,490.
- Redfin customers in San Francisco County, California paid on average 100.771% of the listing price while buyers with other brokerages paid 102.406%. The 1.635% difference represents an average savings of $13,635.
- In Santa Clara County, California, Redfin home-buyers paid on average 98.755% of the listing price, while buyers who used other brokerages paid 99.834%. The 1.079% difference represents an average savings of $9,354.
When we surveyed customers who had worked with Redfin:
- 72% of the people who signed a Redfin offer said Redfin was better or much better than a traditional agent.
- 95% of the people who attempted to buy a home through Redfin, regardless of whether the offer was successful or not, would recommend Redfin to a friend.
- 33% of our customers work in technology; a year ago, 48% worked in technology.
- 88% of Redfin home-buyers are between 18 and 45 years old.
- 45% used Redfin to purchase their first home.
- 36% come to our website through word-of-mouth; 3% come through ads.
- 35% of buyers said that while deciding whether to work with Redfin, their biggest concern was being able to tour homes. To directly address this concern, we recently launched a free-tour program.
After completing our first year as a real estate brokerage, we analyzed results for King County, Washington, and found that in addition to receiving a 2/3rds commission refund, Redfin's customers got a better deal on their home:
- Redfin King County customers paid on average 99.340% of the listing price while buyers with other brokerages paid 100.233% of listing price for a difference of 0.893%, for an average savings of $4,420.
- The total Redfin Advantage, combining the negotiating advantage and an average Washington commission refund of 1.952%, was 2.845%. The total savings for an average Washington customer was $14,080.
- 170 customers in King County bought a home through Redfin, 200 across Washington state.
- 64% of Redfin's buyers said Redfin was better or much better than a traditional agent.
- 95% would recommend Redfin to a friend; in the most recent survey, the percentage was 97%.
- 48% of Redfin buyers work in high technology.
- 90% are under 45.
- 37% are first-time home-buyers, a number that has doubled over the course of the year.
- 49% come through word of mouth; less than 2% through ads.
- 57% report that a seller's agent offered to represent both buyer and seller.
- 42% describe touring listings as their most important concern, despite a new free home-tour program from Redfin.
If you would like to compare our results over the last two years, you can download the Redfin Advantage from Redfin's first and second years of business.
