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Redfin - maybe we should give them more respect!

By
Real Estate Agent with RLAH@properties AB95346

Over the weekend, I had two very well attended Open Houses on Saturday and Sunday on a new listing in Columbia Heights.  And by Sunday night we had two offers on the way.

Both buyers were very likable young women who returned with their agents, and both agents were as nice as their clients were. And one of the buyers was represented by a Redfin agent.

While Redfin is growing in this area, they are not yet a big part of the market in Northwest DC.  And those of us who work for the older, established firms don't really look down our noses at them, but they are regarded as discount brokers who must be inherently inferior.  

Not so fast!

They are target younger buyers who will appreciate the ways they use technology to make finding a home easier.  Their website has one of the best search functions around. Their buyers do a lot of their own footwork and often bring the agent in after they've located a place they want.  

The Redfin agent who wrote on my listing did a great job.  She did come to see my listing with her client and knew a lot about the building.  Her offer had impeccably prepared paperwork (often not the case in the offers we see come in).  She also included a brief bio for me showing she was a seriously experienced professional, and her client had a letter for my sellers that was very sweet.  And I would have love to have worked with her, except that the other offer was just a lot stronger.

But it made me think that we need to keep an open mind about the new business models that are coming onto the real estate scene.  And Redfin sort of fizzled at the beginning, but came back on a stronger footing.  And as they mature, I think those of us who are "full service" are going to have to work harder to be worth the higher fees we charge!

Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Hi Patricia, Redfin is in Central FL but I never worked with an agent from the firm. We should never judge an agent by the company they worked for, thank you for writing such positive post.

Sep 28, 2016 10:16 AM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

I encountered a Redfin agent a few days ago. She submitted a lowball offer, more than 10% under the comps. I mentioned that I have never in my life worked with a Redfin agent and didn't know much about them, except for the part where they work for a salary and the company gives a chunk of the commission to the buyer. I asked this agent in complete sincerity whether Redfin's model, which has always baffled me, is a reason why they attract buyers like the one she had, writing such a low offer. If the business model induces that behavior? I thought she might take offense although none was intended, and instead she said she loves the company, even though she may go for a month without selling a house. I could not imagine going a month without selling a house. My impression has been agents stick with the company to get trained and then go elsewhere to make serious money, but I don't really know because I don't know any of them.

Sep 28, 2016 10:52 AM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Michelle, this is why it's important that we not make assumptions about agents' abilities solely on the basis of their firm's business model.

Sep 28, 2016 01:07 PM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

There are so many so called real estate sites out there, but which ones are actually Professional sites.

Sep 28, 2016 01:09 PM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Sam, their clients seem to be young and a little short on funds.  And I think that's one reason the rebate means a lot to them.  

Sep 28, 2016 01:10 PM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Jay,  I am not surprised. 

Sep 28, 2016 01:10 PM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Andrea,  the bio was actually very well done.  That might be a good idea when you don't know the listing agent.

Sep 28, 2016 01:13 PM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Kat, I had a Redfin agent make an offer on a listing a couple of years ago, and it wasn't competitive, but this one was in competition with a very strong offer.

Sep 28, 2016 01:16 PM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Patricia, this agent seems awfully happy there.  And it is very different that what we are used to.

Sep 28, 2016 01:18 PM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Kathy, you're right about keeping an open mind, especially when we don't know very much about the business model works.  Also, the business is changing so quickly, who knows what it will look like in another couple of years.

Sep 28, 2016 01:20 PM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Chris Ann, good to hear! This agent is in backup position and you never know - although I can't imagine the agent whose client won the bidding was will let hers fall apart.

Sep 28, 2016 01:22 PM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Dick, I think that Redfin does a great job with technology - and there are a lot of us imitating them with virtual tours.

Sep 28, 2016 01:23 PM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Anna, you're right on that one.  I know some funky brokerages that have at least some terrific agents.

Sep 28, 2016 01:25 PM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Beth, thanks for your comments. And one of the things that inspired me to write this post is that I found myself being a little bit judgemental.  

Sep 28, 2016 01:26 PM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Elizabeth, I've always thought Redfin was a good place for a newbie to get his or her feet wet without having to starve, but I don't know anyone who ever left. And I've been known to go a month without selling a home. And this agent has a lot more transactions than I do, but all she does is write up and negotiates the offers.  Other staffers do the basic  footwork showing houses. 

Sep 28, 2016 01:31 PM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

William, actually, Redfin has a great website and IDX search mechanism.  And they were the first to use the 3-D virtual tours.

Sep 28, 2016 01:37 PM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Patricia Kennedy  We do not have them in our area. There have been many who tried to copy their business model though that have closed just as fast as opening. It is a big market, there are those consumers who will only want to pay discount and accept the little they get. One of my niches for full service is being hired by those that either experience discount and it wont horribly wrong, or those referred by someone who went form discount to full service and loved my service. As far a buyer agents bringing buyers to my listings. For me it does not matter the company on their business card, what matters is a qualified buyer with a good offer as my goal is to sell my clients home. 

Oct 10, 2016 10:56 PM
Ginger Harper
Coldwell Banker Sea Coast Advantage~ Ginger Harper Real Estate Team - Southport, NC
Your Southport~Oak Island Agent~Brunswick County!

We do not have Redfins in our area.  I am anxious to read more about them..

Oct 19, 2016 03:52 AM
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Redfin has had little or no impact in my market of Oklahoma City. I don't think Redfin is anything but something that will lead to something else, but they can always pivot to see if they have a working model.

Oct 19, 2016 09:19 AM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Patricia Kennedy 

RF agents are salaried and are paid based on customer feedback.  Many can close 800-150 transactions a year. 1.5% listing commission and credit back about 0.5% in states allowed(almost 40 some states).  Some agents are lawyers and their purchase offer is well honed.  

My problem with some first time buyers is they are not $ strong enough and offers are often lower than those who have more down $.  On low end properties, I often get offers from RF agents who are going together to invest.  

The agents do get burned out. They have supportive assistants. Showing agents etc while we all work for ourselves. As for RF they will not take all business away but they will make major franchise office to bleed. 

Oct 20, 2016 02:03 PM