Does Redfin still offer a home buyer rebate?
Redfin seems to be phasing out its home buyer rebate program.[1]
This program, the Redfin Refund, offered rebates to eligible buyers after closing. The actual amount varied based on home price, location, and other factors, but generally was around $1,500.
However, Redfin's main website no longer mentions the Redfin Refund. Under "Why buy with Redfin?", it advertises its in-house mortgage company.
In addition, multiple sellers reported getting an email from Redfin that stated it no longer offers the Redfin Refund. The company said it's investing in services like its mortgage company instead.[2][3]
We recommend contacting your local Redfin office to find out if it still offers a Redfin buyer rebate.
Our #1 alternative to the Redfin buyer rebate
If you're counting on cash back when you buy, you still have options, like Clever Real Estate.
Clever matches you with top local agents from major brands like Keller Williams or Century 21. You receive the same services you'd get from a traditional buyer's agent, including real-time MLS alerts, on-demand showings, and support with negotiations and paperwork.
If you buy in a qualifying state, you also receive $250 in Clever Cash Back to help with your move. If you buy and sell with Clever, you receive $500.
Clever Cash Back is available in 42 US states. Buyers in the following states aren't eligible: Alabama, Alaska, Kansas, Mississippi, Missouri, Oklahoma, Oregon, and Tennessee.
Clever matches you with the best buyer’s agents in your area. Choose the perfect agent, find the right home, and get money back to help pay for your move!
Where are rebates like the Redfin Refund offered?
To start, there are eight US states that don’t allow home buyer rebates from any real estate agent. These are Alabama, Alaska, Kansas, Mississippi, Missouri, Oklahoma, Oregon, and Tennessee.
Further, to qualify for a Redfin buyer rebate, you must work directly with a Redfin agent. If they refer you to a Redfin Partner Agent, you cannot get a refund.
This is important because Redfin only operates in about 80 US markets.
Outside of its normal coverage area, Redfin will connect you with a Partner Agent instead of a regular Redfin agent to help you buy a home. Redfin will also refer you to a Partner Agent if:
- There aren’t Redfin agents in your area
- The current agents are busy
- Your home is below their minimum price requirement
In these cases, you won’t be able to work with a Redfin agent and won't be eligible for a Redfin buyer rebate.
Am I eligible for a Redfin Refund?
The Redfin Refund doesn’t apply unless the buyer’s agent commission is at least 1% or $6,500, whichever is higher. Because buyer’s agents often receive a commission of 3%, you’d need to buy a home for at least $216,666 before you qualify for a refund.
Sometimes, Redfin agrees to receive only 2% as a buyer’s commission. That means you’d need to buy a home that is $325,000 before the commission hits the threshold. In many areas, Redfin doesn’t offer service on lower-priced properties at all.
That’s a lot of house to buy, especially if you’re a first-time buyer.
Lender approval
Further, home buyer rebates are subject to lender approval. If you receive a rebate before closing, it effectively reduces the overall purchase price of your home. Lenders use this number to calculate the loan-to-value ratio of your mortgage, so a rebate could impact your financing.
Because of this, some lenders may prohibit or limit how much of a rebate you qualify for. Always talk to your mortgage provider before moving forward on a purchase.
The bottom line is that Redfin rebates are tricky to qualify for, with multiple factors impacting your final savings.
How much is a Redfin buyer rebate?
Many Redfin listings show a specific refund amount for that home. Redfin claims that the average rebate is around $1,500, though it will depend on the price of the home and other factors.
However, Redfin rebates are not guaranteed. In the fine print on Redfin's website, the company notes that refund amounts are subject to qualifications and may fluctuate according to a variety of factors.
That means there’s no way to know exactly what refund you’ll get if you use Redfin.
Find Redfin Refund alternatives
When you buy with a Clever partner agent in an eligible state, you’ll get cash back. Unlike rebates, these refunds are guaranteed in full since they're paid out after closing.
If you're weighing your options for buying or selling a house, Clever can help!
Our fully licensed concierge team is standing by to answer questions and provide free, objective advice on getting the best outcome with your sale or purchase.
Ready to get started?
Give us a call at 1-833-2-CLEVER or enter your info below. Our concierge team will be in touch shortly to help.
Remember, this service is 100% free, and there’s never any obligation.
FAQ about Redfin buyer rebates
How much is the Redfin buyer refund?
According to Redfin, the average Redfin Refund is around $1,500. However, this amount will vary drastically based on your location, the price of the home, your mortgage terms, and other factors. And you won't even be eligible for a rebate unless you're in one of Redfin's 80 US markets. Learn more about home buyer rebates now.
Is Redfin good for buyers?
Redfin offers a variety of home buyer services, like a home estimate tool, rebates for eligible buyers, and more. However, most of these don't stack up against the competition if you're buying a home. Learn more about the Redfin real estate.
