Our customers who sell and then buy will pay a 1.5% listing fee on their sale; later, they will get a check for the difference of 0.5% (If you buy within 365 days). Subject to our minimum. Listing fees can vary if you sell to an unrepresented buyer or hire Redfin for additional services (like our Redfin Concierge program, available in some markets). To see our current pricing by market and other terms visit: www.redfin.com/disclaimer.
Most will not owe taxes on this refund of 0.5% but will need to report it on their tax returns, whether they owe or not. We are not required to report this amount to the IRS, and our customers won't receive a 1099 form from us. However, we advise our customers to work with their tax advisor to decide whether you have any tax obligations and how to report.
We can’t give tax advice because everyone’s situation is different, but the IRS has said that customer incentives like this payment aren’t income but instead just home sale proceeds.
- Customers receiving a Redfin Refund or those who have sold with Redfin and haven’t filed a return should add the check amount to their closing statement
- Customers who already filed a tax return for the year and have sold their home and or Received a Redfin refund may be able to report this on their next tax return as home sale proceeds. Or they can consider amending their prior tax return.
We strongly suggest you work with a tax advisor on how to report this to the IRS.
*This article only applies to sellers in the United States. Pricing varies in Canada.