TechCrunch reports that Redfin has secured another $12M in financing. I'm sure this bothers some in our industry, others probably have no clue what a Redfin is.
TechCrunch said of Redfin:
"If you find a home you like and want to place an offer, Redfin will represent you in the buying process (they have a call center with licensed real estate professionals to guide you)."
Well…. telling the buyer to call the listing agent and talking them into showing you the home, and then having YOU the buyer complete an on-line "Wizard" to fill in a purchase contract hardly qualifies as "representation", but the fact remains in some markets (not in Phoenix, yet) you can buy a home through Redfin and get some of the commission rebated back to you.
A lot of agents fear Redfin. While I think what they claim to be "representation" is preposterous, the fact is, anyone is welcome to introduce whatever real estate model they think will work (within legal limits of course, which IMHO, Redfin pushes with regard to fiduciary responsibility).
There is Walmart, and there is Nordstrom's.
There is Taco Bell and there is Ruth's Chris.
There is Redfin and there is "full service" real estate brokerage.
TechCrunch predicts a "really big fight between realtors and Redfin is still to come". Sounds like a complete waste of time to me. If/when they arrive in Phoenix, some agents may simmer and sweat. To me, it'll be another 5, 10, 100 agents in a sea of 48,000 other agents. Just as we don't fear Zillow, we don't fear Redfin. Said it before, and I'll say it again… what's the big deal about Redfin?
The internet isn't going away. I suspect Redfin will, but even if that happens, someone else will come along. "Traditional" agents have several options. They can: 1) bury their heads in the sand; 2) run away; 3) whine and cry about how unfair it is; or 4) change and adapt and kick some ass.
I'm opting for the latter option.
[tags]Redfin, real estate models[/tags]