I work as a refin later in my area since Redfin does not have an office here yet. That means that Redfin sends ma referrals and if the sale closes I pay a referral fee to Redfin, no closing they get nothing. This is a way for me to get additional exposure in my market, its not a replacement for my other business marketing but a supplement, and far cheaper than zillow. Redfin does interview an agent before they accept them as a partner and they expect the agent to reach out to the lie t at least every ten days. This may be better service than some brokerages and could be the new business model for future brokerages. We’ll have to see how this goes.
Redfin appears to be the best discount company to hit the market during my 37 years in the business.
Still, their model is one that would surprise me if it really became profitable. When you are a traded stock, you are expected to grow in size and revenue year after year after year.
My recent experience with Redfin in the San Antonio, TX area is that the agents are primarily working with buyers and the agents are new, untrained and unprofessional.
But remember this, their clients are going to them with the opinion that all real estate agents are the same but these guys will give you cash back.
My clients don’t ask for discounts. They expect professionalism, expertise and better results that net them more money than the discount agencies produce which is an easy fete for me and any full time, long time agent or broker.
If you have 10, 20 or more years of full time experience, you shouldn’t be discounting fees to compete with agents that probably don’t have a single year of experience, little to no training and who can’t invest in continued training because they can’t pay their own bills.
So, you say Redfin agents make bonuses based on customer surveys, but the ReMax agent who gets paid whether the buyer or seller is satisfied is somehow a better agent? Take a look through the surveys of Redfin’s agents and see how many transactions they do and what their clients say about them (Redfin posts the good and the bad) and tell me another Brokerage that holds their agents accountable to service and consumer confidence?
Shay, the REMAX Agent who gets paid whether good or bad reviews doesn’t stay in business long with only bad reviews. Your argument here does not hold true. But also, the average REMAX Agent has well over 10 years of experience, how many years does the average Redfin agent have? That experience is what sets some REALTORS ahead of others.
I’m a broker. I’m not overly concerned about this. The cost of marketing listing is increasing at a rapid rate between social media, sites like Zillow and professional imaging/videos- just to name a few. It will be hard to sustain a true business making 1%. At the end of the day, we (agents) are all in this for profit and not as a charity.
The “Huge Statement”, in the humble opinion of an owner of a locally significant niche real estate firm in Northwest Denver, CO, is that there is an enormous sector of our population who, although they are of a generation known for their “research” abilities, shops solely by price and has yet to establish a concept of value in their lives. We do 3-4 times more listing business here within our niche than either Redfin or Trelora, and our average price for a sold is so significantly higher that it would require a huge payout, over $100,000, to the consumer by the discount brokerage in order to make their services worthwhile. I haven’t even looked at the absorption rate, but I would guess from the amount of mop-up we do during the year for these two named discount brokerages, that there would be a significant number of unsold homes as compared to brokerages who might charge more for their services. And let’s not forget their buyer brokers. I see the offers that come our way. Any buyer broker, in my estimation, who pays a buyer to buy a house has not spent enough time in the industry, and does not have access to effective trainers, in order to build the skills necessary to write competitive offers in the kind of market we have experienced since the end of the recession. Rebates don’t mean much if your broker hasn’t aquired the skills to contract and close a deal.
I started my career back in 2006 with a discount brokerage and in 2007 closed 47 transactions in the West Houston area…without an assistant I might add…2008 only 17 remember what happened in 2008!! We offered full service with a discount on the listing side and when the crap hit the fan the sellers decided that it was more important to have a name in the yard in order to sell…total BS I know but we are talking about a sale that most people only go through once or twice in their lives so what do they know… I moved to Remax and closed 17 in 2009…bringing home 75% more money with the same effort.
at the end of 2009 I started my own brokerage and three years ago I had 4 Redfin agents join my office at the same time, three of them had never worked at any other brokerage, none of these three were able to get their business going on their own and all have now left the industry. I’m not worried at all, there is plenty of business for all of us, just as there are those that only want to communicate by text, there are those that still want face to face…it’s all good.
I’ve been following the Notorious R.O.B. who is an excellent analyst of real estate business, and he points out that the REDFIN model is actually a giant team rather than the traditional discount brokerage. Here is a link to his site where you can read his in depth analysis as well as rebuttals. http://www.notorious-rob.com
MBS Highway is a communication tool that will help you improve your batting average and turn more conversations into applications. Every morning, you’ll receive a coaching video from Barry Habib which will help you beat your competition and be a true advisor in this rapidly changing environment.
The National Association of Mortgage Brokers is the voice of the mortgage industry representing the interests of mortgage professionals and homebuyers since 1973.
In addition to mandating members adhere to a professional code of ethics, NAMB provides mortgage professionals with education opportunities, and offers rigorous certification programs to recognize members with the highest levels of professional knowledge and education.
Ryan Hills and his team over at the RESource are great friends of ours. Tune-in their latest weekly episode right here on the home page of the National Real Estate Post. Ryan delivers fantastic content beneficial for both mortgage and real estate professionals.
Andrew Berman is a wonderful friend of the NREP Daily. His MNN shows are always insightful with great guests. Be sure to tune-in to MNN right her on the National Real Estate Post to see what Andrew has in store for you. Great content for mortgage and real estate pros alike!
Shred Media is the first professional development agency for the real estate & mortgage industry. Shred Media was created for industry professionals by industry professionals. We understand that you have to stand out to stay relevant to today’s consumer. That is why we are hustling daily to build a community where today’s top influencers and thought leaders come together to collaborate.
Two of our favorite guys over here at the NREP Daily. Ray and Dan are true leaders within the real estate industry and their weekly shows prove it. They bring great content and amazing guests to you in a fun and interactive way. Be sure to visit them by clicking the button below so you get notified when they go "live" on Facebook. Trust us, these guys are great!
I work as a refin later in my area since Redfin does not have an office here yet. That means that Redfin sends ma referrals and if the sale closes I pay a referral fee to Redfin, no closing they get nothing. This is a way for me to get additional exposure in my market, its not a replacement for my other business marketing but a supplement, and far cheaper than zillow. Redfin does interview an agent before they accept them as a partner and they expect the agent to reach out to the lie t at least every ten days. This may be better service than some brokerages and could be the new business model for future brokerages. We’ll have to see how this goes.
an overpriced ipo? that never happens
Redfin appears to be the best discount company to hit the market during my 37 years in the business.
Still, their model is one that would surprise me if it really became profitable. When you are a traded stock, you are expected to grow in size and revenue year after year after year.
My recent experience with Redfin in the San Antonio, TX area is that the agents are primarily working with buyers and the agents are new, untrained and unprofessional.
But remember this, their clients are going to them with the opinion that all real estate agents are the same but these guys will give you cash back.
My clients don’t ask for discounts. They expect professionalism, expertise and better results that net them more money than the discount agencies produce which is an easy fete for me and any full time, long time agent or broker.
If you have 10, 20 or more years of full time experience, you shouldn’t be discounting fees to compete with agents that probably don’t have a single year of experience, little to no training and who can’t invest in continued training because they can’t pay their own bills.
So, you say Redfin agents make bonuses based on customer surveys, but the ReMax agent who gets paid whether the buyer or seller is satisfied is somehow a better agent? Take a look through the surveys of Redfin’s agents and see how many transactions they do and what their clients say about them (Redfin posts the good and the bad) and tell me another Brokerage that holds their agents accountable to service and consumer confidence?
Shay, the REMAX Agent who gets paid whether good or bad reviews doesn’t stay in business long with only bad reviews. Your argument here does not hold true. But also, the average REMAX Agent has well over 10 years of experience, how many years does the average Redfin agent have? That experience is what sets some REALTORS ahead of others.
I’m a broker. I’m not overly concerned about this. The cost of marketing listing is increasing at a rapid rate between social media, sites like Zillow and professional imaging/videos- just to name a few. It will be hard to sustain a true business making 1%. At the end of the day, we (agents) are all in this for profit and not as a charity.
The “Huge Statement”, in the humble opinion of an owner of a locally significant niche real estate firm in Northwest Denver, CO, is that there is an enormous sector of our population who, although they are of a generation known for their “research” abilities, shops solely by price and has yet to establish a concept of value in their lives. We do 3-4 times more listing business here within our niche than either Redfin or Trelora, and our average price for a sold is so significantly higher that it would require a huge payout, over $100,000, to the consumer by the discount brokerage in order to make their services worthwhile. I haven’t even looked at the absorption rate, but I would guess from the amount of mop-up we do during the year for these two named discount brokerages, that there would be a significant number of unsold homes as compared to brokerages who might charge more for their services. And let’s not forget their buyer brokers. I see the offers that come our way. Any buyer broker, in my estimation, who pays a buyer to buy a house has not spent enough time in the industry, and does not have access to effective trainers, in order to build the skills necessary to write competitive offers in the kind of market we have experienced since the end of the recession. Rebates don’t mean much if your broker hasn’t aquired the skills to contract and close a deal.
I started my career back in 2006 with a discount brokerage and in 2007 closed 47 transactions in the West Houston area…without an assistant I might add…2008 only 17 remember what happened in 2008!! We offered full service with a discount on the listing side and when the crap hit the fan the sellers decided that it was more important to have a name in the yard in order to sell…total BS I know but we are talking about a sale that most people only go through once or twice in their lives so what do they know… I moved to Remax and closed 17 in 2009…bringing home 75% more money with the same effort.
at the end of 2009 I started my own brokerage and three years ago I had 4 Redfin agents join my office at the same time, three of them had never worked at any other brokerage, none of these three were able to get their business going on their own and all have now left the industry. I’m not worried at all, there is plenty of business for all of us, just as there are those that only want to communicate by text, there are those that still want face to face…it’s all good.
I’ve been following the Notorious R.O.B. who is an excellent analyst of real estate business, and he points out that the REDFIN model is actually a giant team rather than the traditional discount brokerage. Here is a link to his site where you can read his in depth analysis as well as rebuttals. http://www.notorious-rob.com