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I've seen this quite a lot with Redfin in my area. They tend to under price a home.
A neighbor of mine was real proud he sold his home quickly and saved some money. I didn't have the heart to tell him he left about $25,000 on the table.
Seems like it could be good to seek out Redfin listings if looking for a deal.
None of the Redfin agents, including buyer's agents like myself, use the Redfin Estimate in anyway to construct list prices or recommended offer amounts.
Many of you are forgetting that buyers set the market value for a property, not the list price. Out here in California listing agents purposely list homes between 20-30% under the market value to drive more traffic (both physical and virtual) to the listing. If a home has comps at $450,000 and the list price is $400,000, what kind of buyer's agent is recommending a price drastically lower than $450,000 just because the list price is $400,000?
Regarding listing with Redfin, what Redfin promises is a level of exposure for your listing that can't be touched by any other brokerage because no other brokerage has the reach that we do. When 95%+ of all buyers are using the internet to find their homes you can see why having an edge on the net is incredibly powerful. We are by a very wide margin the most visited brokerage site in the US, and our mobile app has exponentially more users than the next closest brokerage. And yes, we're talking about companies like Re/Max, Century 21, and Coldwell Banker. We can provide this exposure by tapping into our huge customer base. We do this by giving our listings premium placement on our site, conduct highly targeted marketing campaigns that include hundreds if not thousands of emails, push notifications, and social media ads.
This is just for a full service 1% product. Throw in our 2% listing concierge product and add cleaning, staging, and other prep work to get your home ready for the market.
Gone are the days when the "neighborhood specialist" would pull out his/her rolodex and call up the top 20 agents in the area to sell their new listing. It's about a web presence at this point in the game, but not only that, still providing a full service experience at the same time and saving people thousands while doing it.
...Regarding listing with Redfin, what Redfin promises is a level of exposure for your listing that can't be touched by any other brokerage because no other brokerage has the reach that we do. When 95%+ of all buyers are using the internet to find their homes you can see why having an edge on the net is incredibly powerful. We are by a very wide margin the most visited brokerage site in the US, and our mobile app has exponentially more users than the next closest brokerage. ....
Well, this truly is hogwash.
IDX, VOW, and syndication give me, a one man show, internet listing exposure equivalent to exposure of a Redfin listing.
My listings appear on Redfin's IDX solutions.
I.e., https://www.redfin.com/NC/Raleigh/34.../home/41337153 At no cost to me, and with no Redfin agent cited.
Their listings appear on my IDX solution.
Both our listings appear on MLSs, and national and local IDX/VOW solutions of Coldwell Banker, Berkshire Hathaway's stable of brokerages, Keller Williams, C21, Local and Regional firms, and all the Mom and Pops.
Additionally, on pop sites like Zillow, Realtor.com, Estately, etc.
Exposure will matter for more than bragging rights when Redfin, or other large firms, convince the bulk of sellers that IDX/VOW and syndication are not to their benefit, and all listings are held in house.
Does Redfin traffic and exposure exceed the aggregate total exposure delivered by all those firms? If not, I may contend that being the most visited site doesn't really much matter.
Not completely tangential point of fact:
I am more profitable than Redfin is. https://finance.yahoo.com/quote/rdfn?p=rdfn
Internet traffic without profit? What is the point? To be the Uber of real estate? To disrupt with ruinous pricing?
While RDFN has historically revised commission rates in search of profit, I have been able to revise commission rates to favor consumers' wallets.
I do appreciate the traffic level. My clients like the site, and it helps me serve them. Weekly, they shoot me listings from multiple firms, that they have seen on Redfin, and ask to see them.
So much for "Most Visited."
I have nothing against Redfin, other than the all too common abuse of AVMs for pop appraisals. And, I give them credit for withholding pop appraisal on the listing I linked above.
But the above quoted contentions are hogwash, truly.
And, it is difficult to praise a "Burn The Cash In A Vague Search For Profit While We Disrupt" business model.
Last edited by MikeJaquish; 03-27-2018 at 04:16 AM..
IDX, VOW, and syndication give me, a one man show, internet listing exposure equivalent to exposure of a Redfin listing.
My listings appear on Redfin's IDX solutions.
I.e., https://www.redfin.com/NC/Raleigh/34.../home/41337153 At no cost to me, and with no Redfin agent cited.
Their listings appear on my IDX solution.
Both our listings appear on MLSs, and national and local IDX/VOW solutions of Coldwell Banker, Berkshire Hathaway's stable of brokerages, Keller Williams, C21, Local and Regional firms, and all the Mom and Pops.
Additionally, on pop sites like Zillow, Realtor.com, Estately, etc.
Exposure will matter for more than bragging rights when Redfin, or other large firms, convince the bulk of sellers that IDX/VOW and syndication are not to their benefit, and all listings are held in house.
Does Redfin traffic and exposure exceed the aggregate total exposure delivered by all those firms? If not, I may contend that being the most visited site doesn't really much matter.
Not completely tangential point of fact:
I am more profitable than Redfin is. https://finance.yahoo.com/quote/rdfn?p=rdfn
Internet traffic without profit? What is the point? To be the Uber of real estate? To disrupt with ruinous pricing?
While RDFN has historically revised commission rates in search of profit, I have been able to revise commission rates to favor consumers' wallets.
I do appreciate the traffic level. My clients like the site, and it helps me serve them. Weekly, they shoot me listings from multiple firms, that they have seen on Redfin, and ask to see them.
So much for "Most Visited."
I have nothing against Redfin, other than the all too common abuse of AVMs for pop appraisals. And, I give them credit for withholding pop appraisal on the listing I linked above.
But the above quoted contentions are hogwash, truly.
And, it is difficult to praise a "Burn The Cash In A Vague Search For Profit While We Disrupt" business model.
Great post . I listed my home with a local independent brokerage ( non franchise ) and I noticed the same .
The listing was syndicated to not only Redfin but Zillow , Coldwell Banker etc .
Buyers are looking for a home in their price range in the area they want to live in with features they want . They aren’t looking for a Coldwell Banker listing or a Redfin listing .
I’ve been a fan of Redfin for years and their interface is definitely a lot better than Zillow , realtor.com etc for searching for homes . Agree their price estimates on the site are usually way off
Out here in California listing agents purposely list homes between 20-30% under the market value to drive more traffic (both physical and virtual) to the listing.
Any agent who tries to talk me into listing my (California) house for 20 - 30% less than the comp value by speculating that this will attract more interest and a possible bidding war will find him/herself on the sidewalk faster than he/she can blink. By this logic, I should have listed the property I recently sold for $375K at $260 - $300K.
If I am looking to purchase a property and see one listed for 20 - 30% less than comps, my first thought is "there must be something wrong with it."
None of the Redfin agents, including buyer's agents like myself, use the Redfin Estimate in anyway to construct list prices or recommended offer amounts.
this is good to know. I do wonder if this applies across the company or not.
Also, what do you tell potential Seller's about the Redfin price? Especially if the redfin price is > 3% below asking or suggested price? Even moreso, what if the agent suggests a list price 10% above the Redfin price?
As to "exposure", how does Redfin decide what is a "Hot House" ... and encourage potential buyers to act quickly? I've just done a couple of searches, and the featured house is "Hot", but NOT a Redfin listing. And the asking price is almost exactly the Redfin price.
Quote:
Regarding listing with Redfin, what Redfin promises is a level of exposure for your listing that can't be touched by any other brokerage because no other brokerage has the reach that we do. When 95%+ of all buyers are using the internet to find their homes you can see why having an edge on the net is incredibly powerful. We are by a very wide margin the most visited brokerage site in the US, and our mobile app has exponentially more users than the next closest brokerage.
as noted, much of this is puffery. I would accept without researching that Redfin is likely the largest BROKERAGE site, but you have to be that specific to be correct. Everyone knows that Zillow = #1 site for searches. I can also say, using Listhub data, that Redfin doesn't beat Zillow, Realtor.com, or my own brokerage's website in my market, a market Redfin has been in for numerous years.
Maybe all 51 Redfin buyers in my 30K home market used the app, and maybe many of those consumers who aren't my client nor of those agent I interact with. We all get customer inquiries from: Zillow; Realtor.com, 1 large local brokerage site, and the Homespotter app.
Any agent who tries to talk me into listing my (California) house for 20 - 30% less than the comp value by speculating that this will attract more interest and a possible bidding war will find him/herself on the sidewalk faster than he/she can blink. By this logic, I should have listed the property I recently sold for $375K at $260 - $300K.
If I am looking to purchase a property and see one listed for 20 - 30% less than comps, my first thought is "there must be something wrong with it."
Exactly I was going to say the same thing .
Maybe this gimmick is done occasionally in an ultra hip neighborhood so they can get 30 offers but I don’t see it being the norm .
Most homes are going for or pretty close to list price .
I agree many will think the same thing and might not even look at the house because “the price is so low what’s wrong with it”
I guess this could be good for the listing agent as it’s generating a lot of activity on one listing but I just don’t see it as a good strategy for the homeowner .
I say if you want to play that game and get people in a bidding war just auction it off.
Regarding listing with Redfin, ...We are by a very wide margin the most visited brokerage site in the US, and our mobile app has exponentially more users than the next closest brokerage. And yes, we're talking about companies like Re/Max, Century 21, and Coldwell Banker. We can provide this exposure by tapping into our huge customer base. We do this by giving our listings premium placement on our site, conduct highly targeted marketing campaigns that include hundreds if not thousands of emails, push notifications, and social media ads.
Do you really believe that you have the most visited site? Copy and paste something honest please. I don't believe Redfin is even top 5 in hits. Can you post some data to support your claim? RE/MAX claims to be #1 with over 90,000,000 hits last year. What do you have for your count?
Secondly, it's a flat out lie that when you claim redfin reaches more customers for the reasons Mike already stated. I home consumers don't believe that deception. That lie certainly makes an already dubious claim to be the #1 most visted site claim appear even more dubious. Have you guys claimed a profitable quarter yet or still losing money by the way?
Secondly, it's a flat out lie that when you claim redfin reaches more customers for the reasons Mike already stated. I home consumers don't believe that deception. That lie certainly makes an already dubious claim to be the #1 most visted site claim appear even more dubious. Have you guys claimed a profitable quarter yet or still losing money by the way?
I've always suspected JB is a Redfin employee. I also suspect he created that 1 post account to respond to this thread and we'll never see that person you responded to back again.
I could be wrong. It's happened once before.
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