Comments on: The Redfin Advantage: Bigger, Broader, Higher Statistical Confidence http://blog.redfin.com/blog/2008/03/the_redfin_advantage_bigger_broader_higher_statistical_confidence.html Redfin Corporate Blog Sat, 21 Nov 2009 15:35:04 -0800 http://wordpress.org/?v=2.8.1 hourly 1 By: FranklyRealty.com Trust Me I’m A REALTOR » Redfin Increases Fees 50%. “Advantage” Leaves Off Seller Subsidy. Oops. http://blog.redfin.com/blog/2008/03/the_redfin_advantage_bigger_broader_higher_statistical_confidence.html/comment-page-1#comment-5881 FranklyRealty.com Trust Me I’m A REALTOR » Redfin Increases Fees 50%. “Advantage” Leaves Off Seller Subsidy. Oops. Sun, 31 May 2009 04:22:19 +0000 http://blog.redfin.com/blog/2008/03/the_redfin_advantage_bigger_broader_higher_statistical_confidence.html#comment-5881 [...] just remember the headlines). But I also re-stumbled upon their “Real Estate Science” blog post claiming that they ALSO did better negotiating vs an average [...] [...] just remember the headlines). But I also re-stumbled upon their “Real Estate Science” blog post claiming that they ALSO did better negotiating vs an average [...]

]]> By: Imagining the Future, Part 2: CRM — The Killer App | Notorious R.O.B. - Conversations on Marketing, Technology, Real Estate http://blog.redfin.com/blog/2008/03/the_redfin_advantage_bigger_broader_higher_statistical_confidence.html/comment-page-1#comment-5799 Imagining the Future, Part 2: CRM — The Killer App | Notorious R.O.B. - Conversations on Marketing, Technology, Real Estate Mon, 11 May 2009 22:50:31 +0000 http://blog.redfin.com/blog/2008/03/the_redfin_advantage_bigger_broader_higher_statistical_confidence.html#comment-5799 [...] it could and should be. (Although, maybe Redfin has something approaching it, because some of their blogposts are rich with customer data.) When CRM is handed off to the individual agent, she simply [...] [...] it could and should be. (Although, maybe Redfin has something approaching it, because some of their blogposts are rich with customer data.) When CRM is handed off to the individual agent, she simply [...]

]]> By: Frankly Fun! Part I | Garage with a Detached Home http://blog.redfin.com/blog/2008/03/the_redfin_advantage_bigger_broader_higher_statistical_confidence.html/comment-page-1#comment-5057 Frankly Fun! Part I | Garage with a Detached Home Thu, 08 Jan 2009 06:21:38 +0000 http://blog.redfin.com/blog/2008/03/the_redfin_advantage_bigger_broader_higher_statistical_confidence.html#comment-5057 [...] few months ago (last March) I made a comment on Redfin’s corporate blog about what I saw as seriously incomplete “science” in their findings about how much [...] [...] few months ago (last March) I made a comment on Redfin’s corporate blog about what I saw as seriously incomplete “science” in their findings about how much [...]

]]> By: Frank Borges LL0SA= Broker FranklyRealty.com http://blog.redfin.com/blog/2008/03/the_redfin_advantage_bigger_broader_higher_statistical_confidence.html/comment-page-1#comment-5042 Frank Borges LL0SA= Broker FranklyRealty.com Tue, 06 Jan 2009 12:51:58 +0000 http://blog.redfin.com/blog/2008/03/the_redfin_advantage_bigger_broader_higher_statistical_confidence.html#comment-5042 Since <b>Washington DC is the only market that publishing the Seller Subsidy</b>, and DC is off by .75% in the seller subsidy (65 deals). Isn't that a significant difference that should be disclosed in your stats? Again, because you offer rebates, the agents are forced to rearrange the offer accordingly. That rearrangement might appear that your stats are better, when in fact the net is worse. Since Washington DC is the only market that publishing the Seller Subsidy, and DC is off by .75% in the seller subsidy (65 deals). Isn’t that a significant difference that should be disclosed in your stats?

Again, because you offer rebates, the agents are forced to rearrange the offer accordingly. That rearrangement might appear that your stats are better, when in fact the net is worse.

]]> By: Matt Goyer http://blog.redfin.com/blog/2008/03/the_redfin_advantage_bigger_broader_higher_statistical_confidence.html/comment-page-1#comment-5040 Matt Goyer Tue, 06 Jan 2009 06:34:27 +0000 http://blog.redfin.com/blog/2008/03/the_redfin_advantage_bigger_broader_higher_statistical_confidence.html#comment-5040 Hi Frank, Thanks for the interest. However, we did not calculate our Redfin advantage for the Washington, DC market since we had not yet been in the market a year when we did the study and felt the numbers would not be statistically significant. Matt Hi Frank,

Thanks for the interest. However, we did not calculate our Redfin advantage for the Washington, DC market since we had not yet been in the market a year when we did the study and felt the numbers would not be statistically significant.

Matt

]]> By: Frank Borges LL0SA= Broker FranklyRealty.com http://blog.redfin.com/blog/2008/03/the_redfin_advantage_bigger_broader_higher_statistical_confidence.html/comment-page-1#comment-5039 Frank Borges LL0SA= Broker FranklyRealty.com Mon, 05 Jan 2009 20:58:54 +0000 http://blog.redfin.com/blog/2008/03/the_redfin_advantage_bigger_broader_higher_statistical_confidence.html#comment-5039 Also to explain WHY the seller subsidy has to be lower... the lender won't allow a 1.5% rebate AND a 1.5% seller subsidy in most cases. So they require the offer be adjusted accordingly. And that adjustment makes it LOOK like the negotiated price was lower. Frank Also to explain WHY the seller subsidy has to be lower… the lender won’t allow a 1.5% rebate AND a 1.5% seller subsidy in most cases. So they require the offer be adjusted accordingly.

And that adjustment makes it LOOK like the negotiated price was lower.

Frank

]]> By: Frank Borges LL0SA= Broker FranklyRealty.com http://blog.redfin.com/blog/2008/03/the_redfin_advantage_bigger_broader_higher_statistical_confidence.html/comment-page-1#comment-5038 Frank Borges LL0SA= Broker FranklyRealty.com Mon, 05 Jan 2009 20:52:38 +0000 http://blog.redfin.com/blog/2008/03/the_redfin_advantage_bigger_broader_higher_statistical_confidence.html#comment-5038 Yo Glenn! What up. Do you all use the closing price, or do you include the seller subsidy for a more accurate NET price? I did a quick spot check and found in Va your average listing had a .5% seller subsidy. The average of 100 homes that sold last week (maybe not statistically usable) had a 1.25% seller subsidy. So using back of the envelope math (I encourage you all to put the data through your machines) I see your .75% worse (just under 1%) on the seller subsidy. Also when I ran numbers last year on average drop from list, I got more like 1.5% (some places 2%) below list being the average. How do you get .087% ? (ie under 1/10th of 1%). I can't imagine the average Realtor having their customers paying 99.13% of list. http://blog.franklyrealty.com/2006/12/mris-data-average-soldlist-ratio-986-or.html So based on my math. Redfin offers 1.5% rebate But .75% worse on seller subsidy And .5% worse vs average agent negotiations vs my data. Makes the net savings 0.25%. Is that right? I probably have the math wrong somewhere, but I'm not sure where. Big fan, and I know you love a good debate! Frank- Broker FranklyRealty.com Yo Glenn! What up.

Do you all use the closing price, or do you include the seller subsidy for a more accurate NET price?

I did a quick spot check and found in Va your average listing had a .5% seller subsidy.

The average of 100 homes that sold last week (maybe not statistically usable) had a 1.25% seller subsidy.

So using back of the envelope math (I encourage you all to put the data through your machines) I see your .75% worse (just under 1%) on the seller subsidy.

Also when I ran numbers last year on average drop from list, I got more like 1.5% (some places 2%) below list being the average. How do you get .087% ? (ie under 1/10th of 1%). I can’t imagine the average Realtor having their customers paying 99.13% of list.
http://blog.franklyrealty.com/2006/12/mris-data-average-soldlist-ratio-986-or.html

So based on my math.
Redfin offers 1.5% rebate
But .75% worse on seller subsidy
And .5% worse vs average agent negotiations vs my data.

Makes the net savings 0.25%.
Is that right?

I probably have the math wrong somewhere, but I’m not sure where.

Big fan, and I know you love a good debate!

Frank- Broker
FranklyRealty.com

]]> By: Imagining the Future, Part 2: CRM — The Killer App « The Notorious R.O.B. http://blog.redfin.com/blog/2008/03/the_redfin_advantage_bigger_broader_higher_statistical_confidence.html/comment-page-1#comment-3486 Imagining the Future, Part 2: CRM — The Killer App « The Notorious R.O.B. Mon, 04 Aug 2008 22:10:19 +0000 http://blog.redfin.com/blog/2008/03/the_redfin_advantage_bigger_broader_higher_statistical_confidence.html#comment-3486 [...] it could and should be. (Although, maybe Redfin has something approaching it, because some of their blogposts are rich with customer data.) When CRM is handed off to the individual agent, she simply [...] [...] it could and should be. (Although, maybe Redfin has something approaching it, because some of their blogposts are rich with customer data.) When CRM is handed off to the individual agent, she simply [...]

]]> By: Boston Real Estate: Not Clinically Depressed, Just a Split Personality | Redfin Corporate Blog http://blog.redfin.com/blog/2008/03/the_redfin_advantage_bigger_broader_higher_statistical_confidence.html/comment-page-1#comment-2919 Boston Real Estate: Not Clinically Depressed, Just a Split Personality | Redfin Corporate Blog Mon, 21 Apr 2008 18:10:19 +0000 http://blog.redfin.com/blog/2008/03/the_redfin_advantage_bigger_broader_higher_statistical_confidence.html#comment-2919 [...] Chris Glew — Redfin Advantage essayist, Boston hockey fan and student of ancient Mexican turds — stopped another fur-flying meeting in its tracks last week with an arresting observation. [...] [...] Chris Glew — Redfin Advantage essayist, Boston hockey fan and student of ancient Mexican turds — stopped another fur-flying meeting in its tracks last week with an arresting observation. [...]

]]> By: Buyer Rebate - Atlanta http://blog.redfin.com/blog/2008/03/the_redfin_advantage_bigger_broader_higher_statistical_confidence.html/comment-page-1#comment-2867 Buyer Rebate - Atlanta Wed, 02 Apr 2008 17:48:24 +0000 http://blog.redfin.com/blog/2008/03/the_redfin_advantage_bigger_broader_higher_statistical_confidence.html#comment-2867 While a buyer rebate is a nice incentive, there is also a lot more money to be saved with a very versed buyer's agent. On some transactions, 10% -15% of the asking price. While a buyer rebate is a nice incentive, there is also a lot more money to be saved with a very versed buyer’s agent. On some transactions, 10% -15% of the asking price.

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