Redfin commission splits range from about 40/60 to 75/25, depending on the market and whether the client came through Redfin. Agents can earn up to a 75/25 split with their own clients, but only up to 40/60 when Redfin provides the lead.
Note that Redfin has a discounted commission model, charging sellers a 1.5% listing fee instead of the traditional 3%. So on a $500,000 home sale, the gross commission would be $7,500 instead of $15,000, and an agent with a Redfin-sourced client would earn a maximum of $3,000.
Although Redfin’s splits are lower than industry standards — traditional brokerages may offer up to 90–95% on a 2.5–3% commission — agents get employee benefits, covered business expenses, and no franchise or desk fees.
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Redfin fees at a glance
In the past, Redfin agents made a base salary, but many are now paid under the Redfin Next program. Lead agents can earn up to a 75% split with clients they bring in themselves, or up to 40% with clients provided by Redfin.[1] The exact split varies by market, transaction volume, and accelerator bonuses.
While a 75% split sounds competitive, remember it’s applied to Redfin’s 1.5% listing fee — not the traditional 2.5–3%. That means the total commission pool is smaller than the average commission rate.
However, Redfin agents don’t have to cover many of the out-of-pocket costs that other agents face, such as desk fees, franchise fees, or E&O insurance.
Here’s what that looks like on a $500,000 home sale under the Redfin Next structure:
| Max Redfin client split (40%) | Max non-Redfin client split (75%) | |
|---|---|---|
| Gross commission (1.5%) | $7,500 | $7,500 |
| Agent commission after split | $3,000 | $5,625 |
How the Redfin commission split works
Under the Redfin Next model, the key factor is whether the client comes from you or from Redfin. Agent-sourced clients — like past customers or leads you generate outside of Redfin — can earn you up to a 75% split. Redfin-generated clients — leads you meet through Redfin — max out at a 40% split.[1]
For example, with a $10,000 gross commission (from a $667,000 home sale at a 1.5% listing fee), an agent with a Redfin lead would earn $4,000, while an agent with their own lead could earn $7,500.
Even though Redfin-sourced leads pay less, Redfin agents are considered employees and receive benefits — including health insurance, paid time off, and 401(k) matching. At traditional brokerages, agents usually operate as contractors and have to cover those costs themselves.
Other fees
Redfin covers nearly all of its agents’ business expenses — including MLS dues, association fees, training, mileage, and even mobile phone plans. Independent agents at traditional brokerages usually pay these costs out of pocket.
Because Redfin is a single corporation (not a franchise), agents also avoid franchise and desk fees. Altogether, Redfin estimates it covers about $25,000 in business expenses per agent each year.[2]
Redfin pros and cons
- Business expenses covered, including MLS dues, cell phone plans, and mileage
- Steady stream of leads from one of the nation’s top brokerages
- Employee benefits, including health insurance, paid time off, and 401(k) matching
- Strong brand recognition
- Lower gross commission of 1.5% vs. 3% industry standard
- Commission split capped at 40% on Redfin-generated leads
- Income potential tied to high transaction volume
Redfin can be a good fit if you value consistent lead flow and employee benefits. With most business costs covered and a steady pipeline of clients, you can focus more on closing deals than finding them.
The trade-off is income potential: Redfin’s splits are lower than traditional brokerages, and they’re based on a smaller 1.5% commission. To earn the same income you might at a higher-split brokerage, you’ll need to close more sales.
Redfin commission split: What agents think
Redfin agents have mixed feelings about working for the company. On Glassdoor, Redfin real estate agents rate the company 3.4 out of 5 stars, about average for the industry.[3]
Many agents appreciate the support, benefits, and reduced costs that come with being a Redfin employee:
“Nice to have a company support you with all of the day to day costs associated with real estate; as an employee you don't have the start up costs.”
Several reviewers also noted that Redfin can be a good place for new agents, thanks to the steady flow of leads and brand recognition:
“Redfin is a great real estate company to start with or grow with! People are available to help you with questions or concerns.”
— Indeed
But not all feedback is positive. Some agents say the commission split is too low, especially since Redfin no longer offers a base salary:
“Years of experience as a realtor and you’ll make very little of the already low 1%-1.5% fees. So, you can sell a $1mil house and after taxes make $2,500 after taxes. Crazy low!”
— Indeed
Others mentioned that the quality of Redfin’s leads can vary, requiring agents to close a high volume of deals to make a competitive income:
“While you will be presented with a large number of clients each month, even Redfin is aware that many are in no position to buy or are simply using the platform as a touring service. It’s a high contact sport and the reality is that you will have to close 5-6 deals a month to even see income comparable to that of being a traditional agent.”
— Indeed
How Redfin compares
| Redfin | Century 21* | Coldwell Banker* | RE/MAX* | |
|---|---|---|---|---|
| Commission | 1.5% | 2.5–3% | 2.5–3% | 2.5–3% |
| Commission split | 40–75% | 70–90% | 50–90% | 60–95% |
| Commission cap | None | $15,000–200,000 | Usually none | $23,000 |
| Franchise fee | None | $0–25,000 / 6–8% | Up to $25,000 | $17,500–37,500 |
| Desk fee (per month) | None | Often $0 | $0–$350 | $0–2,500 |
| Other fees | None | E&O, MLS fees, transaction fee, royalty fees | E&O, MLS fees, transaction fee, royalty fees | E&O, MLS fees, transaction fee, royalty fees |
Traditional brokerages like Century 21, Coldwell Banker, and RE/MAX operate on a franchise model, so fees and splits vary by location. Redfin also varies by market, but its core features — no franchise fees, no desk fees, and employee benefits — are consistent nationwide.
When it comes to commission splits, Redfin lags behind. Experienced agents at traditional brokerages can keep up to 90–95% of a 2.5–3% commission, compared to Redfin’s 40–75% on a 1.5% fee. And because Redfin doesn’t have a commission cap, agents pay Redfin on every deal, no matter their sales volume.
Where Redfin comes out ahead is in fee savings. Traditional brokerages often charge franchise fees in the tens of thousands, plus desk, MLS, E&O, and transaction fees. Redfin agents avoid these expenses, which can add up to significant yearly savings.
Bottom line
Redfin’s commission split is starting to resemble a traditional brokerage, but it still has unique features. Its agents are employees rather than independent contractors, so they receive employer-provided benefits and most business expenses are covered.
That said, Redfin’s commission splits are lower than average. This can make the company a solid option for new agents looking to build their name — especially with Redfin’s consistent lead flow. Experienced agents may find the lower splits frustrating, though high-volume agents can still succeed because more transactions help offset the smaller commission.
If you’re looking to grow your business, it’s worth comparing your options. By joining Clever’s Partner Network, you can connect with high-quality, ready-to-convert leads and save time on marketing and client acquisition.
FAQ
Does Redfin charge desk fees?
No. Redfin lead agents are employees, so most business expenses — including desk fees — are covered by the company.
How is commission split in real estate?
At most brokerages, agents keep a percentage of the gross commission while the brokerage takes the remainder. Depending on experience and brokerage, splits typically range from 40–95%.
What is a commission split cap?
Some traditional brokerages limit the amount of commission they take in a year. Once an agent reaches that threshold, they keep 100% of their commissions for the rest of the year.
What is a franchise fee?
Many brokerages charge a franchise fee, which can cost tens of thousands of dollars upfront, plus an ongoing royalty fee (often around 6%). Redfin is not a franchise, so it doesn’t charge these fees.
