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Earlier, I reported about the non-debate between Glenn Kelman and Lennox Scott at the Inman Real Estate Connect in San Francisco. In addition to a number of great sessions, we had the opportunity to walk around and visit vendors and companies at a number of booths.

Gena Riede and I stopped by the Iggy's House and Buy/Side Realty booth, but were initially unable to speak with anyone because San Francisco attorney David Barry was imploring the guys behind the booth to "please stay in touch with him." For Barry's new MLS, I guess....

Anyway, after Mr. Barry finally left, we were able to speak with the Iggy's House and Buy/Side Realty guys. They were actually very friendly and said that unlike Redfin's model, they really hoped to work with and within the real estate industry.

Given that Iggy's House lists homes for 0 percent (and includes both MLS and Realtor,com) and that Buy/Side rebates 75 percent of the sales commission, you might begin to think that the two traditional and full service real estate brokers standing there were out of their minds to engage in such a conversation.

Not so, because a couple of things come to mind:

1. We occasionally have desperate clients who are beyond any kind of help we might be able to offer--other than good advice. I offered to Iggy's guys that there might actually be times when I would refer a client to them. Iggy's representatives countered that they sometimes have clients who are unable to sell under Iggy's do-it-yourself system, and would be open to referring those clients to us. So far so good.

2. I am not in competition with Iggy's House or BuySide Realty. How could I be?

Q: But guess who is?

A. Redfin, mostly.

But I guess anyone or any company that chooses to compete on price alone will have a hard time competing against a business model that charges zero for listings and returns to buyers 75 percent--instead of Redfin's paltry 66 percent.

The rich nerds that have been Redfin's target may very well decide to move their loyalties to a more generous model--as long as they will be doing so much of the legwork on their own anyway.

I also have to wonder what Redfin's investors are thinking of this aggressive new competitor....

Next year, it would be interesting to see a Connect Duet at the Inman Conference with Redfin's Glenn Kelman and Iggy's Joseph Fox.

Full Service San Diego Real Estate

 

 

 

 

 

 

 

16 Comments on Redfin in Iggy's Sights?

AUG
04
2007
389,500 Points 16 Featured Posts Outside Blog
I'm sure Redfin will be all over Iggy about how their system is much better for the consumer and the industry...(yeah right). -Charles
5:49pm • #1
175,171 Points 10 Featured Posts Outside Blog
Roberta - Very insightful post.  And, an interesting thought that there is room for referrral both directions.  There are indeed plenty of clients who prefer to work with a full service company and some who are willing to go it on their own, albeit not necessarily as profitable to them as indicated bu NAR stats.  But, as you point out, there are some who really may have no other choice. 
5:51pm • #2
172,003 Points 46 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp
Charles: You know what? Joseph Fox and the guys at Iggy's think their service far exceeds Redfin's--and is far more technologically advanced. That is why I'd love to see a duet between the two:-)
5:58pm • #3
244,910 Points 56 Featured Posts Localism Sponsor Outside Blog

Roberta, I somehow knew that these would be your first 2 posts. I second everything you said. Great job with the facts...with the possible one exception.  Iggy is far more at ease speaking than Redfin. Much more credible.

 
6:00pm • #4
172,003 Points 46 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp

Marlene: Hope you are feeling better!!! Funny, but I am shopping at three places today: Online, Costco and Albertsons. There's room for all and they all make money.

But I think I'll go out tonight because I want good food and service--and just don't feel like cooking.

There's an analogy there, somewhere. 
6:02pm • #5
172,003 Points 46 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp

Gena!      You are right. They were easygoing, and HAD NO PROBLEM LOOKING YOU IN THE EYE.  

I, too, am impressed with their credibility.

Thanks for the tour and good fun. 
6:05pm • #6
597,151 Points 45 Featured Posts Outside Blog
Roberta, thanks for sharing. There were certainly some very interesting people to talk to there at Inman Connect.
8:21pm • #7
889,961 Points 20 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master
Roberta - It is very interesting watching all the changes in the industry.  I suppose we will see others trying business models similar to Redfin and Iggy, the question is: who will be standing in the next five years?
10:21pm • #8
125,663 Points 24 Featured Posts
Will be intersting to see how Iggy's and Redfin duke it out for that end f the business.. no question there is a place for fee for service companies and Iggy's house may have hit the right note.. Redfin is a bit arrogant which is a turnoff to clients and other agents..
11:06pm • #9
172,003 Points 46 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp
Sharon: I agree. With events like these, we learn as much from the seminars as we do over the dinner table.
11:21pm • #10
172,003 Points 46 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp

Jennifer: My bet is on us;-)

Kaye: Iggy's is the killer for Redfin. Their premise is built on commission, and commissions (or the lack thereof) will do them in.

11:24pm • #11
AUG
05
2007
493,869 Points 15 Featured Posts Localism Sponsor Outside Blog

Roberta,

I think these guys are on the road to eat their young...
12:35am • #12
172,003 Points 46 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp
Lynda: c-a-n-n-i-b-a-l-i-s-m?
12:39am • #13
JAN
30
2008
The Fox Brothers are not really running a business put a pump and dump just like they did with Web Street Securites. Stay Away!
unknown
4:45pm • #14
JUL
02
2008

It looks like it finally happened... the Iggy's House just flattened!  Try to get on the website... won't work!  Also found out that the "President" in the San Diego office is shopping for new personal-type health insurance!  Obviously, the previous commenter "The Fox Brothers are not really running a business put a pump and dump just like they did with Web Street Securites. Stay Away!" was right... the only difference is that this time, the pump and dump didn't work.  Sounds like Fox's millions made on the Web Street scam was just luck and not skill.
iggy's house skeptic from the start
12:36pm • #15
172,003 Points 46 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp

I read about the fall of Iggy's House and BuySide Realty this morning.  For some reason, I am not surprised.  This is a market that will test even the strongest.
1:50pm • #16

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Roberta Murphy -- Carlsbad Real Estate and Homes

San Diego, CA

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