Save Money When You Buy or Sell a House

There's a new company out there called Redfin which is shaking up the real estate industry that can save you a ton of money the next time you buy or sell a house.

Normally, when you sell a house, the realtor charges you a commission equal to 6% of the sales price. If the buyer has a realtor, the selling realtor will split his 6% with the buyer's realtor, so they each take 3%. With house prices as high as they've been many selling realtors will take 5% or even less, if you negotiate.

Redfin is much cheaper and better.

If you are selling your home, Redfin charges a flat fee of $4,000 ($3,000 if you agree to pay before your home sells (but not in California)), and will list your home in the MLS, on google, on Craigslist, and will put a sign in your front yard. You host home tours, and they handle scheduling the showings and the paperwork needed to sell your home. Because Redfin is a self-service seller, your home may not sell, and other Realtors may be hesitant to show your home if there is no commission to share.

However, if you are buying a home, Redfin is totally the way to go. Redfin will keep 1/3 of the 3% commission that the selling realtor gives them and will refund 2/3 of the 3% commission to you. That means you get 2% off the agreed price. You'll even get a Redin realtor to show you the houses that are for sale. Redfin's website is very powerful, and allows you to search MLS listings using a variety of options and see all matching homes on a map of the area.

Now, I haven't actually used Redfin, so I can't say whether the service is good or not, but they do offer a 100% satisfaction money-back guarantee.

http://www.redfin.com/