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I know Zillow said they were going to buy houses directly from owners. Then they can just sell the houses on their own site since they already have the traffic.
That is the strategy I keep reading about. There are a handful of very well funded startups with this sole goal. At least Zillow is public and has very deep pockets. They also have well established traffic and a brand name. If the market slows here they can buy at a discount and sell at a huge profit a few years from now.
These companies are going to knock out the need for realtors, not sure how long it's going to take. I know Zillow said they were going to buy houses directly from owners. Then they can just sell the houses on their own site since they already have the traffic.
Say goodbye to the 6% commission scam.
Its a good thing.
So why did you pick Redfin over Zillow?
It won't get rid of realtors. Redfin uses realtors and starts at 4.5% (1.5% redfin, 3% buyers agent). If you want all the additional stuff, it goes up as well. A full service realtor is worth it most of the time granted the realtor is good. I'm a small time real estate investor. I'd rather pay 5.5% for a good full service realtor than save 1.5% with a discount broker, but end up selling my house 5% less.
Full service realtor is worth it for an odd property that doesn't fit the normal of what a regular person would be buying in the area.
Otherwise, for most of the transactions that occur, all you are paying for is for them to bring / email you a contract, take some pictures and get you on MLS(this being the big one).
They generally don't show up for showings, so you're showing the house or have a lock box and you leave anyway. The question is, do you really need them taking the call and then texting you the appointments or do you just want to talk to the realtors directly and do your own appointments.
I use flat fee brokers to sell and that is where real estate is moving in the future. You sell the property, you get your 3ish%. You list, you get a paperwork fee and that is about all you deserve for the vast majority of homes that get sold.
This is an example of how the smart money thinks real estate is going to be disrupted for what it's worth. Personally I always like to understand where industries are going before the herd gets it.
The app and the way things are streamlined are IMO superior to anything Zillow has at the moment. I have guided friends along with their buys using Redfin, everything was super easy and of course cheaper. E.G if you want to see a property you don't have to talk to anyone, you open up the app and select a time that works for you and one of their contractors will show you the property.
Bought GOOGL @ 1050 today. Yesterday bought TCEHY @38.69. I haven't set stop (never used stop) or limit to sell. I'm not a trader, but I hope this thread will help me treat this seriously and not lose money.
Sold GOOGL @1030 and TCEHY @38.43, both at small losses
Location: Was Midvalley Oregon; Now Eastside Seattle area
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Quote:
Originally Posted by myname_isborat
That is the strategy I keep reading about. There are a handful of very well funded startups with this sole goal. At least Zillow is public and has very deep pockets. They also have well established traffic and a brand name. If the market slows here they can buy at a discount and sell at a huge profit a few years from now.
Z or any other firm does Not want to buy and hold RE, especially in a rising interest environment. No bank is going to lend at a fixed rate for the amount Z wants to borrow, ie shades and follies of 2003-2007.
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