Source: Storypipe
A non - real estate agents point of view about Redfin and other real estate brokers.
Thoughts?
How Redfin & Waterless Toilets are Alike?
Published by September 13th, 2006 in Blogging and Residential Real Estate.
Like it or not, this is the perception that is propagating, especially among techies, who have claimed changing the way the real estate industry does business as a chip on their shoulders.
Real estate professionals can’t take this personally, but respond to it in a way that presents their value proposition. While the creation of zillow has started the comparison between travel agents and real estate agents, comparison with the stockbroker is more fitting. Making huge fees on relaying stock orders evolved into stockbrokers becoming “financial planners” and those who couldn’t make the transition are now either retired or in othe professions.
It’s past the time for real estate agents to do more than “make two phone calls, write up a contract and collect a commission” which is rarely what happens, but what the perception out there is. And we know that perception is reality.
Soooo, real estate professionals, what are you doing today to create more value to your clients and customers? If the answer is nothing, be prepared to be replaced - by a mouse! md
I have a new post on my blog that unintentionally turned into sort of a manifesto regarding Real Estate 2.0. I honestly believe that there are creative people out there that will figure out a way to generate revenue equal to or even greater than the average commisions being paid for transactions. A guy with a camcorder and little common sense is basically validating what it took me all night to blather into a lengthy blog post.
Bridging that gap between perception and reality will be the cornerstone of new Real Estate 2.0 business models. Whether the game is won by the home teams or visitors is yet to be determined, but make no mistake, the stadium has been selected and the first quarter has started. It’s going to be fun to watch.
I don’t think the speaker is describing redfin right, at least the commission part of it. On one hand he says redfin is charging a flat $2000 fee to the seller to list the property, and on the other hand is rebating the buyer 2/3rds commission euating thousands of dollars saved. Well 2/3rds of $2000 is $1320… not exactly thousands.
Hey, I actually know it’s different, but this was my perception of speaker and the facts he was representing. If everyone is going to buy his story then there are just way too many sheep out there.
I’m not going to simply buy that redfin equals all things good, while real estate brokers equal all things bad… especially when the represented facts do not add up.
Michael,
So true. What’s great about this country is the freedom to try new things. The market will determine if you got it right. But you have to get the word out. That’s what’s helped zillow & redfin. Both those models are not new–zillow’s AVM model has been used for years. But it’s the marketing—how you get people to perceive your value. But then you have to deliver the goods.
And you are right about the comparison to stockbrokers. People have to be educated as to what value a real estate broker can bring to them over an order taker. And if you cant show that value, they’ll choose the order taker & save a few bucks.
But real estate is 3 things—money, time & “perception of value”.
Todd,
For many people it’s the overall perception of value that carries the day. The redfin proposition of saving money is attractive becasue the prior perception is that real estate costs you money. Fundamental things like saving thousands & getting a house value free without any info disclosed are magnets to consumers. The nuances are often overlooked.