Back in October, Redfin, the online real estate brokerage, lowered its listing fees in many of the markets where it operates, bringing 1% listing fees to markets like Los Angeles, Boston, and New York.
One of the markets excluded from the lower listing fees was San Francisco, until now.
Redfin announced late last week that homeowners in San Francisco can now list their properties for 1%.
Previously, Redfin’s listing fee in San Francisco was 1.5%.
With the reduction, San Francisco now joins 25 other Redfin markets, including Dallas, Houston, and San Diego, with 1% listing fees.
The lower listing fee is subject to a minimum of $5,500 in the San Francisco market.
According to Redfin, the lower fee is being offset by a reduction of the refund Redfin gives to buyers in San Francisco who purchase a home with a Redfin agent. Buyers can continue to see the amount of the refund, which is based on the price of the home, on the home listing page, the company said.
“Our offer is simple: Redfin agents provide expertise and premium service for a lower fee,” said Mia Simon, Redfin market manager for the San Francisco Bay Area. “In our unique market with high home prices and strong buyer demand, sellers need a real estate agent with a keen understanding of market fundamentals, who can develop a pricing and marketing strategy to sell quickly, for top dollar and with minimal stress.”
According to the company, San Francisco sellers working with a Redfin agent will now save between $15,000 and $20,000 on a $1 million home sale thanks to the lower listing fee, when compared with traditional listing fees of between 2.5% and 3%.
“Offering the Redfin home-selling experience for just a 1% listing fee builds on Redfin's mission to make real estate better for consumers,” said Karen Krupsaw, senior vice president of real estate operations. “We are improving every part of the home-selling process –not only reducing the cost– but addressing the challenges of setting the right price, getting the property ready to list, making a strong debut on the market and keeping track of logistics and paperwork.”