Redfin Real Estate - Is Redfin really "a better way?"

By
Real Estate Agent with Windermere Real Estate - Palm Springs CalBRE# 01339266

"Redfin is the industry's first on-line brokerage for buying and selling homes, half Century 21 and half E-Trade. This means we know when you want to use the web and when you want to talk to a real person. Our goal is to change the real estate game in consumers' favor by offering you more data, better-performing agents, and a significant commission refund"

This is the bold statement on Redfin's website.

This week I received a call from an out-of-town buyer who wants to buy a condo in Los Angeles. He found me through my on-line marketing and was impressed by the testimonials he read. After a 15 minute chat he asked if I would match the "Redfin deal" of refunding $10,000 - $12,000 of my commission back to him. I paused, and asked if I could call him back so that I could take a quick look at the Redfin Website.

Another bold statement from Redfin: "In major metropolitan areas, our own agents deliver fanatical service and a 50% commission refund; elsewhere our carefully screened partner agents offer a 15% commission credit".

I called the out-of-town prospect back and explained that I am not a Redfin Broker or affiliated partner. Again he asked if I would match their offer of a $10,000 - $12,000 refund of my commission. I confirmed I couldn't and wouldn't - But I did ask him why he called me and not a Redfin Agent.

He replied that he had left a message but that he hadn't received a return call.

..... I explained that when I pay my clients $10,000 - $12,000 to do a deal, I also don't return calls!

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Topic:
Real Estate Sales and Marketing
Location:
California Los Angeles County West Hollywood
Groups:
Condo Specialists
LA Connection
Local Expert
FREEDOM Office: Professionals Working from Home
Tags:
redfin
west hollywood condos
los angeles real estate
penn properties
stewart penn

Comments 106 New Comment

Rainmaker
1,150,826
Tony & Darcy Cannon
The C Team
Keller Williams Legacy

Stewart, great response! 

June 26, 2009 12:45 AM
Anonymous
Anonymous

Stewart,

I didn't know what Redfin was until I read the whole thing. This sounds like borderline criminal scam activity; definately they're playing a numbers game. Can they not be reported and investigated?

July 31, 2009 12:35 AM
Rainmaker
636,030
Jane Grant
Temecula Homes and Murrieta Homes
Jane Grant, "Temecula Homes", Southwest Real Estate

Great story, I am checking out everything about Redfin as I am getting so many clients using the Iphone application.   But, it is not accurate information!!!!

October 08, 2009 04:52 PM
Rainer
18,364
Rochelle Edwards
J. M. Edwards Associates Inc.

The whole world wants a deal and few realize that they get what they pay for. Hopefully over time, companies like this will die off as people wise up to their antics. Good for you for standing up for yourself and not cutting the commission.

November 17, 2009 08:20 PM
Rainmaker
311,284
Glenn Roberts
Retired

I have to agree with Lenn here. Pretty much a fringe company. Redfin has built a great website with their $20MM in venture capitol. When that gets used up, and we are almost there from what I've read, they will have to get more venture capitol or they will have to charge what everyone else charges to stay in business.

I've dealt with several of their agents and they, like all agents are either very good, average or very bad. No surprise. The surprise will be to see where last year's Redfin agents are five years from now.

I expect when the money's all spent they will sell their software program to the highest bidder and follow their founder into never never land.

June 26, 2010 11:10 PM
Rainmaker
473,563

Palm Springs Realtor Stewart Penn

Windermere Real Estate - Associate Broker
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