My friend Geordie is a high-end real estate junkie. He cruises hot neighborhoods for open houses, even when he travels. He goes to every luxury condo party, and even picks up a few units here and there. When I joined Redfin he was ecstatic. Now he’d have someone to talk shop with. So, every time I walk into his house I get peppered with questions … how’s the Fin (his pet name for Redfin)? Anyone buying really expensive houses with Redfin yet – where, who, how much, what was the commission refund?
When we started this crazy venture to change the real estate industry we were so excited just to get an offer (we actually rang a bell for each close. I hear Amazon used to do the same thing, copycats!?), now we’re working on multimillion-dollar deals. We just closed three multimillion-dollar transactions in April, including one house worth more than $7 million!
“For a higher-priced home, Redfin provided outstanding value compared to what we would have paid a traditional broker for the same service,” said Redfin homebuyer Tina Dur (pictured with her adorable family).
This might sound like peanuts to some brokerages, but it’s an historic first for Redfin and shows how far we’ve come. We’re crossing the chasm from early adopter Seattle tech-geeks to new markets and customers. April’s three multimillion-dollar deals were in California and 33 percent of Redfin buyers work in high technology, a decrease from 48 percent last year.
We won’t turn this into an Oscars’ speech, but, Geordie, this one’s for you. We also couldn’t do it without the improved relationships with the agents listing high-end homes, and our more than 75 customers who have bought $1 million-plus homes via Redfin, who received an average of $26,265, tax free.
The moral (sorry for sounding like Aesop, but I just read The Alchemist and I’ve been looking for omens and morals everywhere) is that high-end homebuyers are just like you and me. We know what we want – all the information, to be respected and an honest value; all core Redfin values, which is why we think we’re seeing more people buying very nice houses. But at the end of the day, we still give customers the same rockstar service whether spending $300,000 or $3 million.
Now another local big shot company is copying our idea! Did you see that Microsoft is giving commission refunds to customers who buy via their search site? And we thought we were changing just the way real estate is done.
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