Comments on: Redfin, Explained In Cute Little Drawings and a North Carolina Accent

By: Glenn Kelman

Glenn Kelman — Thu, 15 Nov 2007 20:04:07 +0000

Dee, it just means that Redfin agents get a salary + a fairly significant bonus based on their responses to a customer satisfaction survey. The service costs the same regardless of what Redfin pays its agent: we keep one third of the commission, and refund you the other two thirds.

We can deduct the commission rather than pay a refund, but the seller has to agree to it, which usually isn’t a problem. This is what I would do, because you pay lower taxes. The real reason a lower selling price isn’t the standard situation is that some buyers need help with the downpayment: in other words, they prefer a higher price (which they pay over 30 years) and a refund (which they get at closing).

By: Dee

Dee — Thu, 15 Nov 2007 18:48:54 +0000

As somebody unfamiliar with how Redfin works (and is a very cautious spender), I’ll give you this feedback. When you say the Redfin rep is paid based on customer satisfaction what does that mean for homebuyer? How does this affect the cost of services? Also, why does the buyer get a refund? Why not just deduct that amount from the costs? Other than that, I think the video was great! It explained the proces so clearly and was straight to the point rather than fancy and full of fluff.

By: Anthony Longo

Anthony Longo — Mon, 12 Nov 2007 22:05:52 +0000

Well done. Sometimes simple really is better!

By: Reuben Moore

Reuben Moore — Thu, 08 Nov 2007 18:19:10 +0000

From North Carolina: Redfin appears to have tweaked your home touring options, so I for one would welcome you to North Carolina.

The average home sales price in the Raleigh market is $265,500 and in our entire MLS area, $243,000. And, the buyside commission is more variable (three percent is definitely not a given here). I am curious whether your business model could accommodate this market, even given the obviously lower cost of doing business here.

By: Marcelo Calbucci

Marcelo Calbucci — Tue, 06 Nov 2007 19:18:23 +0000

Brilliant Glenn. This is the best the money can buy.

A quick feedback on the post. If you read it through certain Feed Readers (like BlogLines), or receive this through email (using FeedBlitz) the embedded video will not appear. So I read the post and kept wondering where is the link for the video? A footnote like “If you don’t see the embedded video go to [Redfin Blog]” (brackets with the hyperlink).

By: Glenn Kelman

Glenn Kelman — Tue, 06 Nov 2007 17:54:33 +0000

We have to figure that out in the next couple of weeks… no matter what the numbers say, I’m likely to vote for Carolina!!!

By: becky

becky — Tue, 06 Nov 2007 16:43:12 +0000

Speaking of North Carolina….when is Redfin going to plant some seeds here? I plan to sell within the next year & a half & would love to be among the first here to use Redfin!