Redfin - The Cure for Laziness?
Posted on May 21st, 2007 by Jonathan Dalton
I was checking some backlinks and ran across this comment on Redfin’s blog post about last week’s “60 Minutes” piece …
“I sincerely hope Redfin makes it to AZ. I’d love to see the starch taken out of the lazy Realtors who just list and dump it into MLS. Go gettem Redfin guys ‘n gal.”
Oddly enough, if the person writing the comment actually had looked at the Redfin site, they would have discovered that Redfin’s primary modus operandi is listing in the MLS. Redfin also will provide pricing guidance, a lockbox and an electronic color flier. If the owner wants actual fliers on paper, it’s on the sellers’ dime.
Redfin also encourages the homeowner to personally host an open house and a broker tour. (Personally, I don’t believe in either open houses or broker tours as neither has proven overly effective in selling a house, so I can’t rail against Redfin for not doing the same. Then again, I wouldn’t recommend my sellers waste their time with one or both either.)
In an interesting twist, Redfin will provide pricing guidance but will not visit the property to gauge what it may be worth. Locally, where the vast majority of homes are alike, that wouldn’t be an issue. In areas such as Seattle, where homes vary widely in age, amenities, upgrades, etc., that’s almost tragic.
Many in the public are so anti-Realtor that they’ll follow any so-called crusader, even if the crusader really isn’t doing anything particularly unique. Such is Redfin. Certainly, the PR machine is more polished than most. But the substance is little different than what has existed for years.
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The only difference is that Redfin is completely clear on what it is doing, namely dumping it on the MLS. Given the choice between a “full service” realtor dumping my house on the MLS like a box of wanted kittens at a shelter and charging 6%, or Redfin doing the same for %3000, it seems a no brainer.
Now choosing between a full service realtor advertising the heck out of my house for 6%, and Redfin… well thats a different matter.
The not visiting the house for a CMA is somewhat disturbing though. Still if you get paid up front, what does it matter that the CMA is off I guess.
As long as the name is spelled right on the check, I suppose. I still think there’s more incentive for those of us working on contingency for a commission versus those who collect the cash up front.
Though these days, cash up front doesn’t sound all that bad.
Considering that the majority of their PR comes from their competitors blogs, I’d have to say that the “PR machine” is brilliant. The sooner agents stop talking about Redfin the sooner they will fade away. Their model has no viable future.
Agree Norm, the saying “What you resist, persists” sums it up pretty nicely.
The irony to me is that there are far bigger discount chains than Redfin, yet they get minimal blog PR.
-Athol
Remember, gents, I’m a former newspaper writer. While I decry the notion of newspapers writing what they know sells, I’m not against going with the same theory when it comes to blog traffic.
Redfin and Zillow sell. And I’ve got opinions on both. Sadly, I’ll likely never succeed as a real estate blogger because my focus strays beyond the latest pothole on Bell Road.
(cough)
Redfin and Zillow have a mixture of good and bad points (in my mind at least). I just know that if I write about a bad aspect of either one I get a line of comments as everyone lays into it like a heavy bag in an underfunded prison gym.
Write about a good aspect… [chickets chirping]
-Athol
Honestly, I’m not totally anti-Zillow. I’m not even fully anti-Redfin … I just believe the reality doesn’t match up with the hype in the latter’s case.
With Zillow, I have one homeowner who reduced their price primarily because of what’s showing on Zillow. The zestimate in this case is fairly close, but it being visible has simplified matters greatly.
Personally, I have no worries or concerns over Redfin or other similar models. I don’t feel threatened in the least. I welcome the opportunity to differentiate myself and my services. My primary concern though is whether or not these kind of businesses truly offer adequate representation for the consumer. There may be a cost savings to the client, but at what cost are their best interests being compromised?