Redfin CEO reacts to NAR's $418 million commission lawsuits settlement

Redfin CEO Glenn Kelman joins 'The Exchange' with CNBC's Diana Olick to discuss the implications of the National Association of Realtors' settlement on the real estate industry, how the settlement could affect Redfin's business, and more.

[Zw]

Listening to a massive corporation owner say he’s “advocating for lower commissions” is bull. He’s advocating for trying to take more of the market for himself rather than letting thousands of independent contractors earn a living. Most realtors sell 10-15 homes a year. They pay a percentage of their commission to their broker, a percentage to taxes, and for marketing, healthcare, etc. Most Realtors don’t make much money. This lawsuit will just serve big corporations and it will make a lot of first time home buyers/lower income individuals completely clueless as good realtors aren’t going to work for free and those people can’t afford to pay them and bring a down payment. Idiots

[mikeatgoogle]

Buyers are not that dumb to just pay their agent a fee. They can freely go to another agent or straight to the seller to make an offer. Get rid of the middle man!!!

[steveolivares]

I feel horrible for all the home buyers out there. Home buyers will naively go unrepresented to save money. I see lawsuits in the future from home buyers.

[michaelvargas]

Redfin won't show you all the properties you want to see. Their service is equivalent to low-cost airlines service.

[darrins]

All of these brokers are making false statements regarding how commissions and representation work. Buyers HAVE NEVER been required to pay a commission to a Buyers agent (a Buyer Broker fee). This guy just said that Buyers have never had the ability to negotiate the fee they pay to a Buyer agent. What the heck is he taking about??? You don't need to negotiate something that you don't have to pay for!!

[TheWildlifeGallery]

Commissions do NOT drive up the price of a home - it's worth whatever fair market value of it is - the home appraiser does NOT factor in what the seller is paying commissions. FSBO should be outlawed as well with this reasoning.

[jinc]

First time homebuyers just got screwed. Redfin ceo is being disingenuous.

[sunlite]

I can see a new FREE multiple listing service springing up in competition with the existing MLS.

[seanbouker]

List agents still get their money... Most big list agents get 6% and keep out competition they will not change their ways.... Getting rid of the compensation field doesn't get rid of the compensation... Buyers agents typically do all the work, they work with a buyer and take them to hundreds of homes point out any defects or issues (legal or otherwise) negotiate price, coordinate with inspectors, appraisers, (the mom and dad that want to see the house), multiple attorneys and their paralegals, land surveyors, the endless line of people that work for the bank, and the aloof list agents... Often times to hit a dead end and start all over again to head on the road for more showings all without pay.... The compensation was to let buyers agents know if they sell the house they will be getting paid, no one will try and weasel them out of a check after they spent a year and a half working with the clients.... The idea that you would sue to remove pay for the person that works for the best interest of the buyer is insane.

[missulu]

What a mess!?! Ok, we just do advertising, 2 free RE ads every 48hrs., no cookies, very easy to use. Very soon FSBO, realtors, and brokers will need affordable alternatives. We are just getting started and we are happy to help.

[jerrybuffington]

Real estate agents may eventually go the way of the travel agent. There will always be agents available for those whom value their service and can afford it. Everyone else can do it themselves or see how good AI is at it.

[LT-emvu]

With the technology available today, all any buyer or seller needs is one Realtor involved Period. Change contracts to read different. Lower cost is what it is all about. Agent's don't get it, their taken it the wrong way. Agent's will not lower their fee's on their own so, here you go. Appraisal companies need to be next. No Agent's should be able to talk with a appraisal company. Increasing values for too many reason (buyers closing cost, more commissions, etc.) change, change change we need thank you

[GeorgeGray]

Redfin and companies like it or the real issue. They offer reduce commissions because they buy the homes and drive the prices up and flip them. That’s what driving. The pricing up is large companies buying up all the inventory instead of actual families. This spin that commission is what drove the price up is insane. If it was agents driving, the price up, the homes would never appraise and never be financed in the first place. What’s really driving the price up is companies paying cash whether there is no appraisal in selling it for 100 K more than they paid for it

[hzkvjsl]

I'm a retired Florida RE broker. I'd like to see real estate agents get paid like attorneys get paid. Retainer up front, paid by the hour and a percent at settlement. I agree that commissions should be negotiated. At the same time, real estate agents aren't paid until they close on the property, and that needs to change. Before I retired, I had my own discount brokerage firm. This is long overdue, and so is the way real estate agents are paid.

[stevenyu]

This CEO is not a honest broker of information. Redfin makes most of its money from buying side of commission offered in MLS.

[dezmarinvestmentsllc]

The goes first to the plaintiff's lawyer fees!!! The attorneys are the real winners here.

[Rene-uzeb]

Let's just face it: the buyer broker works for the seller, not the buyer. Otherwise the buyer would pay the broker for their time, not only for the final sale. I think the problem isn't that the brokers can see the offered commission by the seller agent, resulting in 'steering', but that the buyer and seller cannot. That is what's preventing competition. I mean if you can keep negotiations 'amongst yourselves', let the suckers pay, right? Also they probably need to advertise how much they are going to charge for a deal up front, not only once you found the right house, and most of it a fixed price, with only a fraction being percentage commission, at least that would be more competitive if everything was transparent

[TimothyHoth]

Redfin is garbage

The world should’ve supported realtors on this one

And should still continue to support realtors

A commission was always negotiable

It could even be one penny or one dollar

There was never a set standard



Think about it like this
When you go to a restaurant and the servers, not getting a lot of money, they have no knowledge of the food

When you go to Walmart, the employees there have no knowledge on how to help you or assist you in the supermarket

When you go to a bank, tell her barely even knows about money and financing

And what you guys are doing with real estate is one day you will go to buy a house and you will be dealing with somebody that gets paid $30 an hour and they will know absolutely nothing about real estate

You are creating a world we’re stupid people get rewarded

This is disgusting

It should be the people that studied hard and try hard and work extra hard, setting the rules

Not all you people that are stingy or don’t understand the process or never took 20 minutes of your day to talk to a realtor to understand

[gomerhanger]

the goofball from Redfin doesn't know what he's talking about.

[West_Coast]

@1:47 Buyers don't decide how much to pay their agent, if the buyer doesn't like your commission, they're moving on to a new agent, simple as that.