Redfin — The Anti-Google June 20, 2005
I’m extremely disappointed in the latest direction that Redfin has taken and I’d like to use this post to explain why I’ve completely stopped doing business with them.
For those of you not familiar, Redfin is a company that has developed a really great aerial technology for viewing MLS data. When they came out, I signed up as a “Redfin Agent” because their technology was superior to anything else available for searching the MLS. In previous blog entries I’ve mentioned how great their technology is.
How did they plan to make money? In the simplest sense, their business plan involved displaying MLS information via an intuitive interface using aerial images. When prospective clients would look for a home, Redfin would direct them to local real estate agents. After the prospective clients purchased a home, the real estate agent would send a portion of the closing commissions (20%) back to Redfin. By repacking the MLS data in a new way and getting real estate agents to promote them, they hoped to take the industry by storm. However, their site must not be nearly as popular as they hoped because their newest business venture turns them into a discount real estate company.
However, I wouldn’t write this blog entry if they were just another discount real estate agency. I don’t have a problem with discount real estate agencies and I think they provide a useful service for a subset of sellers (and besides, they keep us full-service agents on our toes!). The reason I write this article is that Redfin went from being a partner with real estate agents to a competitor. I think they assumed they could use the goodwill that they’ve built up with agents to slip a fast one on us.
The worst part is that Redfin didn’t have to go that route. Early on, I talked with them about licensing their technology to display MLS over my site. When the showed only passing interest, I decided to develop the MLS Search Engine myself… And while my technology is still in the infant stage, I’ve found a way to display MLS data over aerial photos (so don’t believe their front-page marketing that says that are the only ones doing this!).
If you are currently a “redfin agent” (like I was!), please join me in severing your business relationship with Redfin until they decide to join us again as a partner. As Redfin doesn’t offer a way to “delete” your account, I recommend doing the next best thing. To delist yourself from their database, go to: http://www.redfin.com/stingray/do/my-redfin. Log in using your username and password. Click “edit your profile”. From there, click on the option box that says “Hide my profile” and then click “save changes”.
I think it is clear that full-service real estate agents should no longer be supporting Redfin. If you are an agent who has canceled your Redfin subscription, please consider leaving a comment below. I think that will help encourage other agents to do the same thing!
Check out these related posts:
- leaving Redfin to pursue new opportunities…
- John Cook Interviews Redfin CEO: Redfin is “crazy-good”
- Redfin - PRESS RELEASE
Article Tags>> david-eraker | information | Local-News | News | Redfin
- Posted in : General Real Estate, Site Info
- Author : Anna
Thanks again for the suggestion.
I don’t know your relationship with your buyers agent (or the sellers), or...
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The CEO of Redfin, David Eraker, is…
After being threatened by David Eraker, the writer of this comment asked me to delete the text. I thought he provided some excellent information and am deleting it with great reluctance… ~Anna
Who’s Going to Take Online Real Estate to the Next Level?
Combine Realtor’s MLS-based national (i.e. US) search with HousingMaps UI (because who cares for Craigslist housing listings?), including smart ideas such as a history of past sales as featured by Redfin (who is not alone in overlaying local MLS data…
[...] r, around June, RCG had a falling out with Redfin when they changed their business model to directly compete with Real Estate agents. One of the more interesting outcomes of my June post is that a fo [...]
[...] A while back, Anna wrote this article that showed how Redfin wants it both ways with real estate agents… and it is interesting that while Glenn is new to the staff (he started in September), he inarticulately describes this same conundrum that Redfin faces. [...]
[...] They’re a little more “threatening”, but I’d have to say its because of their historical hostility to real estate agents rather than their current business model. [...]
The MLS search engine is horrible. It’s a competitor to Redfin? Okay…
Sounds like a lot of sour grapes.
[...] Redfin’s main complaint seems to be how “unfair” the whole system is, how they’ve been “threatened” and how they’ve met resistance from other agents. Let’s see……Kelman’s been quoted in dozens of articles, websites and press releases about how he’s going to “disrupt” the real estate industry and disintermediate the agent, and then they complain that they’ve met with some resistance from the very people they’re threatening. Hmmm…. It could also be because of their historical hostility to real estate agents rather than their current business model. Or maybe it’s just personal. Could this be the future of the real estate industry? [...]
[...] While we’ve had a few run-ins with David Eraker in the past, he always kept his chin up and I wish him the best. It will definitely be interesting to see if he sticks with real estate for his next venture. [...]
[...] Many brokerages mistrust Zillow and wonder if it’s friend or foe. Some liken it to a drug dealer who gives away the first couple of hits for free. Once you’re hooked, then the dealer can start charging whatever they want. A few point to Craigslist. What was once free (real estate and job listings) are now being charged for. And several other Seattle agents remember Redfin’s about-face, as it started out as a referral business for agents, but quickly alienated them by setting themselves up as competitors and as Tech Crunch noted “doing their best to completely remove real estate agents and brokers from at least half of a home sale.” [...]
Thank GOD for redfin. Finally, a company to bring some moral fiber to the corrupt real estate industry. For realator fees to based off a percentage is LUDACRIS! It should always be a flat fee…maybe 500 dollars MAX. Wow people buying and selling have just been getting suckered for all these years.
FYI, I do not work for redfin……i just think that redfin is a spectacular idea and i am so glad it is comming to fruition.
I’m in the market for a home. I saw your 60 minutes interview and was wondering do Redfin sale morgages in Georgia?
In response to Mr Gavins post. Being articulate and thorough as well as literate is exactly why a person needs to enlist the assistance of a professional Real Estate agent. One look at Mr Gavins inability to commuincate effectively immediately turns on the siren to alert every unscrupulous vulture out there that a sucker exists. Do yourself a favor Mr Garvin higher a realtor.
Freddie,
You’ve picked up on an OLD thread here… Redfin has changed a bunch since this post… This was written before Glenn Kelman came on board and at least two business models have come and gone for them…
[...] March 7, 2008 by Dustin …I convinced my wife to hit publish on this article about Redfin. [...]