Comments on: Redfin Enters the Great Southland Empire (& Runs Faster Too)

By: Jerry

Jerry — Tue, 13 Feb 2007 06:55:00 +0000

The Feb 12 2:38 post is by somebody impersonating me. I did not write it. Grow up, whoever you are.

By: Jerry

Jerry — Mon, 12 Feb 2007 21:38:38 +0000

How is it that a redfin agent can be as knowledgable as a local agent as to specific nuances about a particular community? (i.e. schools, shopping, recreation, etc). A “local” agent seems that they would be much better able to serve the needs of a particular buyer in a particular area. Also, any way you slice it, brokers that operate on a “discount” basis, need to take somewhat of a “Wal-Mart” or “Costco” approach; volume! If Redfin is going to give away their money this quickly, how much quicker will they give away mine when negotiating? Just a thought.

By: wildernessman

wildernessman — Mon, 12 Feb 2007 03:01:28 +0000

I think listing agents should show buyers the mind of evil gods as well.

By: Lou Srinistan

Lou Srinistan — Sun, 11 Feb 2007 17:47:25 +0000

Or what about Open Houses? Does a listing agent find showing houses directly to buyers during an open house to be beyond the call of duty. Other than actually showing the product for sale, listings in this case, it isn’t exactly clear what other effort could be asked of a listing agent. There is no other industry where salespeople would complain of having to show the product for sale to prospective buyers.

By: Lou Srinistan

Lou Srinistan — Sun, 11 Feb 2007 17:36:58 +0000

Redfin should take issue with Steve’s claim that Redfin shifts the workload of showing homes to the listing agent. This is one of the primary tenets on which he bases the limited service argument (Redfin clients rely on the listing broker to show the homes.) This argument is completely self-serving. Any newspaper advertisement taken out by a listing agent or broker advertises the number of the listing agent representing the home. Premium listings on Realtor.com list the listing agents contact information alongside their respective listing. Obviously, this is a solicitation to the buyer to contact the listing agent directly. In how many instances is a listing agent going to refuse to show a home when a prospective buyer contacts them from a newspaper advertisement or Realtor.com listing? 0% of the time. When a listing agent chooses to advertise in a newspaper or lists their properties on Realtor.com with their contact information, the listing agent is inviting the workload associated with showing the home directly to the buyer. Complaining about Redfin generating direct-buyer inquiries is the equivalent of complaining that the local newspaper provided free advertising.

By: Glenn Kelman

Glenn Kelman — Fri, 09 Feb 2007 23:30:53 +0000

Actually, Phil doesn’t like Southern California as much as I do, and so he really said it looked like the mind of some evil god, which is a more interesting statement but less welcoming to our new friends in Southern California…

By: wildernessman

wildernessman — Fri, 09 Feb 2007 17:55:28 +0000

Glenn–

Your friend has seen the mind of God?

By: Brian Brady

Brian Brady — Fri, 09 Feb 2007 15:02:39 +0000

Thanks for the reply, Glenn. I think you’ll find that your concept will be a welcome one in San Diego. There are plenty of “geeks with really nice homes” here.

By: Glenn Kelman

Glenn Kelman — Fri, 09 Feb 2007 14:34:37 +0000

Hi Brian,
I enjoyed Steve’s post. If I hadn’t thought it was good, I wouldn’t have linked to it. And if he hadn’t made worthwhile points, I wouldn’t have responded to him. That said, I don’t think it takes a persecution complex to view the post as a (legitimate, smart but also enjoyable, juicy, fun) challenge to our business. Referring to the post informally was more an attempt at levity than intemperance, but hopefully it should be clear that we like to see the fur fly on the blogs as long it’s intelligent, polite fur, which Steve’s post really was. So we meant no disrespect to Steve. What he wrote was a pretty good take-down. I stayed up late writing him back.

By: Bret Hewett

Bret Hewett — Fri, 09 Feb 2007 13:40:32 +0000

It’s so interesting to see how emotional the debate is over the semantics of terms like “discount broker” or “rebates.” There seems to be an anxiety among traditional brokers and realtors–and those who support the preservation of traditional real estate business practices–that prestige in the business is increasingly diminished with the rise of these new business models–these “discount brokerages,” so to speak.

There’s a real fear that smarter consumers, and lower prices, somehow cheapens the profession. The law and dental professions, among others, have experienced the same anxieties.

“Agents of Angst” is what the New York Times, in a recent article, (http://query.nytimes.com/gst/fullpage.html?res=9A07E5D6163FF93BA15752C0A9619C8B63&vendor=GABRIELS&partner=GABRIELS) dubs those in real estate sales who are more legitimately responsible for blackening the eyes of the profession; although, the article’s anecdotes are mostly centered around the NYC area.

Whether we call Redfin a “discounter,” or not, is purely wordplay. The fact is, buyers now have more choices because they are more informed; and believe it or not, buyers prefer to be more informed. When they are, they have a much larger stake in their investment; plus they have a more open and honest line of communication with their agent.

Buyers who prefer to have less control over their purchase can simply defer the process to a traditional agent, and thus pay a larger commission. It’s great now that buyers actually have that choice, that companies like Redfin are offering that choice.

After all, isn’t this how the Internet has been transforming businesses in almost every industry?