• Redfin’s new offering, Redfin Next, brings a commission-based model to the previously salaried world of its agents.
• This commission model is being tested in San Diego and Orange County.
• Redfin agents who participate in the program will retain their W-2 status and existing benefits.
• Commission splits offered can be as high as 75 percent.
A Transcendent Transformation at Redfin
Metamorphosis with a Twist of Orange (County)
As if plucked straight from the chrysalis, Redfin has sprouted wings and is soaring in a remarkable new direction. The online real estate marketplace has jettisoned its traditional salaried agent structure and is skedaddling nervously into commission-based territory. But this particular detour is not nationwide yet – Oh no, they’ll test the waters first in the oh-so-sunny corners of Southern California—San Diego and Orange County.
A ‘Beneficial’ Twist in the Tale
But wait! Before you start sweating like a real estate agent during an open house with no foot traffic, know that Redfin isn’t planning to go full Scrooge on its employees. Agents cookie-cuttingly called ‘participants’ in this embryonic endeavor will keep their W-2 status and existing benefits. The program might have looked at the traditional commission scheme and said, ‘Hold my Beer!’ How else would you explain commission splits totaling up to a whopping (you may want to sit down) 75 percent?
Quippy Closing Thoughts
So, Redfin has decided to intertwine the best of both worlds—salaried stability and commission ecstasy—into one neat package. And where better to test this zesty cocktail of real estate reconstitution than in the citrusy warmth (get it, Orange County?) of Southern California. Kudos to them for rewarding agents with alluring commissions while letting them keep their employee-cuddling benefits. If Redfin Next succeeds, it may revolutionize the real estate industry. So, as we wait and watch (perhaps with a bag of popcorn), keep your eyes peeled for the portfolio-swelling possibilities. Is this the ‘Next’ best thing in real estate? Only time will “sell” (Sorry, couldn’t resist that one!).
Original article: https://www.inman.com/2023/12/12/redfin-expands-commission-based-model-in-southern-california/
