Redfin is Really Not Worth It - Senior Agent Redfin Employee Review

Redfin is on a mission, a mission to reduce the value of real estate agents in the real estate transactions. Actions speak louder than words, and everything this company does reinforces how little they not only value their own agents, but the role of agents in general. This is ironic since it is those people that are out in the field every day interacting with customers and procuring business that results in commissions paid to Redfin, which accounts for nearly all of the company revenue. They will lure you in by offering job titles that they claim are prestigious, and company stock bonuses that you have to stick around for 4 years to receive, and a $5000/yr boost in base salary compared to the most entry level agents that they hire. They'll brag about their "loyalty" deals or all of the access to support staff you'll have, and talk about how much money you'll make after years 3 or 4 or more that you work there. But what happens during the first 3 months or 6 months or 12-24 months, and why are there so few agents that have worked there for 3 years or 5 years or 10 years? This is why: Everything that they are boasting about - from the transaction bonuses to the "event" pay to the company paid operating expenses to the culture and supportive team or stable income/employment is false, grossly exaggerated, or completely misrepresented. Your "transaction bonuses" (or commissions as the rest of us in the industry refer to the money we earn when we sell something) amount to about 10% of the total commission paid. What?! Yes, sell a $600k house, with full 3% commission paid to the buyer's agent, for total of $18,000 in gross commissions, and you will be paid $1,800 .... not right away. No, to add insult to injury, you will be paid that $1,800 during the last pay period of the month following the closing. For example, if you close on May 15th, and June 29th is the last payday in June, you'll be paid $1,800 on June 29th, for a $600,000 home that you closed on May 15th. Your friends at Coldwell Banker, KW, Berkshire Hathaway, Re/Max or you name the company just earned about $12,000-14,000 more than you, but who's counting? But don't worry, you've got that generous base salary the company pays you, right? Not so fast. Do the math and you'll probably see that your base salary, for an 80 hour 2-wk pay period, averages out to less than minimum wage in most of the United States. Of course, when you were recruited and hired, you probably heard about these "loyalty deals and bonuses", which means you can earn 25-50% of the Gross Commission when you bring one of your previous clients or personal contacts into the Redfin system, and they work with Redfin to buy their next home. It's a sliding scale, based on how many of your previous customers and personal contacts you introduce to redfin, and you work your way up to the 50% amount that they think is so generous. Initially, you'll make about 25% if you are lucky. So, lets use the $600k home sale, with 3% or $18k commission as an example, again closing May 15th. Once again, June 29th would be your lucky day and you'd earn $4,500 for your efforts. Compare that to your typical big brand brokerage with a 75/25 or 80/20 commission split, and you will earn $9,000 to $10,000 less than you'd make working for a real brokerage. Event Pay? What on earth is that? Great question and you'll be pressed to find anyone at Redfin that knows what "events" they are paid for attending, and how much for each? You are paid different amounts for different showings. You are supposed to be paid for company meetings and buyer consultations, but rarely are. And why no pay for listing / seller consultations? There is a revolving door of management, with frequent "restructuring". Today, managers have been assigned sales quotas, so they are competing with their own agents. And, with that constant change in management comes office politics, favoritism, singling out team members, and seriously questionable hiring and firing practices. A biweekly paycheck, that amounts to less than minimum wage, is hardly a stable income, nor is your job at Redfin, which can easily be put on the chopping block with every change in management. If you have your own book of business and personal contacts that support your business, do yourself a favor and don't cheapen your value by moving to a discount brokerage model like Redfin.