Just ask Glenn Kelmann of Redfin.com.
Redfin issued a press release today with MLS statistics PROVING that Redfin agents are superior negotiators to everyone else. Superior by a differential of over 2%; an average savings of over $4000. They cite:
1- The compensation structure allows a Redfin agent to be unbiased whereas the traditional Realtor has an incentive to let his client chase a bad deal.
Agents do what you pay them to do, we reasoned, and we believed our agents would be more likely to get the price our customers wanted.
2- There may be a better way to analyze the performance of an agent but the MLS data is all they have for now.
What makes this noteworthy is that the data did not come from Redfin, but from data that any brokerage can validate by following the instructions available in the appendix ...
Well, you (meaning the real estate weblogging community) jumped in with your two cents: (from Matt Goyer, a Redfin employee's post)
I love this stuff! I'm a complete numbers geek and loved Statistics class in B-school. There are so many problems with the data cited it is laughable:
1- The data don't exclude transactions from "part-time" agents (and probably can't). Redfin claims superiority to the experienced full-time agent.
2- They cite data but refuse to republish it citing that it would be an MLS infraction. Marlow Harris calls them on fuzzy math. (Come on, Glenn! When have you ever played by the MLS rules?)
3- Finally, Glenn's non-responsive response on Bloodhound Blog (That's my story and I'm sticking to it) was challenged by the resident logician, Greg Swann.
;)
;)
