Redfin links

I definitely want to blog about Redfin but unlike Media Center I’m not planning on starting a redfin.mattgoyer.com. I’m also not going to post a lot about Redfin on Urbnlivn unless relevant to the condo, new construction scene. So until Glenn gives me the keys to the Redfin blog I’ll just blog about Redfin here.

First link is to John Cook’s blog, Real estate on KUOW. I haven’t listened to it, but John blogs:

In minute 37, Redfin Chief Executive Glenn Kelman calls in to say that the Redfin service was inspired by Freakonomics and says it plans to refund about $10 million to $20 million in commissions next year. In minute 43, a caller says real estate agents “don’t do a whole lot for what they make.”

Wow, that’s going to be a lot of money refunded. I know that I’m kicking myself for not using Redfin when I bought my condo back in Febuary, but they (I guess we) had only been doing the online offer thing for a few weeks and until recently I didn’t realize you could use Redfin to buy any listing (new construction, outside of Seattle, etc.). I know that I will use Redfin to purchase my next condo though (and sell my place at the Meritage).

John also blogs about a Red Herring article, Real Estate’s Web Wake-up :

Redfin says sales have been doubling every month since March and the company doesn’t expect to see a slowdown in the business. “There aren’t many large markets left for Internet companies,” says CEO Glenn Kelman. “This is the final frontier for e-commerce.” In more ways than one: Mr. Kelman claims he’s received death threats from real estate agents incensed over Redfin’s cut-rate business practices.

And someone left an interesting comment on his blog, Online real estate survivors:

I’m a REALTOR in the Pacific Northwest with the ability to pull the volume that Redfin has sold. According to NWMLS data Redfin has only sold 75 residential, 20 condo listings, 1 vacant land listing and 1 multi family properties in the last six months. While this would be put an individual agent in the top 1% of agents in the Seattle metro area this is a very small number at the firm level. What is interesting to me is the amount of press that Redfin gets because of its commission rebate model, however for a company that is about to enter its 3rd year and with the venture backing and executive board it would seem that their results are dismal.

Glenn really is the best person to respond to a comment like this, so I certainly won’t comment on the numbers and research, but I will point out that Redfin has only been pursuing the online buying and selling since the beginning of 2006 so while the company and a www.redfin.com website have been around for three years the current business model is much newer.

This also isn’t the first comment on John’s Venture Blog complaining about the amount of attention Redfin receives; Redfin receives attention because consumers are starting to realize that 6% commissions aren’t set in stone.

Update: John comments on why he thinks Redfin get so much attention:

I have heard from other readers — including real estate agents — who wonder why Redfin gets so much attention. I think there are a few reasons for this: a potentially disruptive model in a big market, a perception by many home buyers that real estate agents are overpaid, venture capital from Paul Allen, Madrona and others, a colorful CEO who is not afraid to take his message to the press, reaction from real estate agents, a business model that many consumers can quickly grasp, etc.

From my perspective, these are good elements for a story. That’s probably part of the reason why The New York Times story on Redfin was one of the most e-mailed and caused such a stir.