Comments on: Redfin Downsizes To Keep Swimming http://www.futureofrealestatemarketing.com/redfin-downsizes-to-keep-swimming Internet, Web 2.0 and Real Estate Marketing Sun, 21 Mar 2010 02:08:12 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Susan Baker http://www.futureofrealestatemarketing.com/redfin-downsizes-to-keep-swimming/comment-page-1/#comment-31955 Susan Baker Wed, 17 Feb 2010 10:27:57 +0000 http://www.futureofrealestatemarketing.com/redfin-downsizes-to-keep-swimming#comment-31955 Thanks for sharing this informative and well written article. Sorry to hear of Redfin's struggles as they are attempting to innovate. Even though I don't agree with their business model, meaning I don't think its actually best for their clients or their own longevity, I do appreciate they're trying to do things in a different way and I admire and respect that. I agree with you that in the recent past the Boston real estate market has slowed down a bit but that don’t mean we are in the downward trend. I think the market has lost its momentum for a little duration. The Boston luxury condominium market has seen a lot of ups and downs. This recession won’t last much longer even if the recovery will be slow. I’ve been keeping an eye on the market and watching prices go up and down on sites by searching for Boston condos for sale. My prediction is that by start of 2011 we’ll probably see this market looking up. Thanks for sharing this informative and well written article. Sorry to hear of Redfin’s struggles as they are attempting to innovate. Even though I don’t agree with their business model, meaning I don’t think its actually best for their clients or their own longevity, I do appreciate they’re trying to do things in a different way and I admire and respect that. I agree with you that in the recent past the Boston real estate market has slowed down a bit but that don’t mean we are in the downward trend. I think the market has lost its momentum for a little duration. The Boston luxury condominium market has seen a lot of ups and downs. This recession won’t last much longer even if the recovery will be slow. I’ve been keeping an eye on the market and watching prices go up and down on sites by searching for Boston condos for sale. My prediction is that by start of 2011 we’ll probably see this market looking up.

]]> By: Orange County Real Estate Guy http://www.futureofrealestatemarketing.com/redfin-downsizes-to-keep-swimming/comment-page-1/#comment-24762 Orange County Real Estate Guy Fri, 17 Oct 2008 02:45:08 +0000 http://www.futureofrealestatemarketing.com/redfin-downsizes-to-keep-swimming#comment-24762 Sorry to here about the people who lost there jobs. It just shows that those agents who provide a high level of service and knowledge will survive. I am not sorry to see the business model have trouble. Sorry to here about the people who lost there jobs. It just shows that those agents who provide a high level of service and knowledge will survive. I am not sorry to see the business model have trouble.

]]> By: Shuki Haiminis http://www.futureofrealestatemarketing.com/redfin-downsizes-to-keep-swimming/comment-page-1/#comment-24760 Shuki Haiminis Fri, 17 Oct 2008 00:10:02 +0000 http://www.futureofrealestatemarketing.com/redfin-downsizes-to-keep-swimming#comment-24760 I have to agree with the above poster. If they were getting the typical 2.5% they would have collected $1,225,000. I dont know about you but I would rather be working on a % rather than salary. I think this downturn is going to make or break these models and my guess is that they will break. I have to agree with the above poster. If they were getting the typical 2.5% they would have collected $1,225,000. I dont know about you but I would rather be working on a % rather than salary. I think this downturn is going to make or break these models and my guess is that they will break.

]]> By: Boston http://www.futureofrealestatemarketing.com/redfin-downsizes-to-keep-swimming/comment-page-1/#comment-24753 Boston Thu, 16 Oct 2008 13:42:09 +0000 http://www.futureofrealestatemarketing.com/redfin-downsizes-to-keep-swimming#comment-24753 Redfin sold about $49M out of their Massachusetts office over the past 12 months according to MLS and that's 97 transactions. By my estimations then their net commissions at the end of the day were somewhere between $350k and $400k. They employ 5 brokers...Presumably they maintain an office, if you have employees you have benefits to pay (rather than independent contractors) then there are the investors maybe they'd like a return on their investment DO THE MATH this business model is toast. You can blame the downturn but 5 brokers as employees to gross $350-400k over 97 transactions doesn't work, everybody is working and nobody makes any money WHY do that? Now they'll bleed out the rest of their funds until eventually they file and go the way of Foxtons - see you later. Redfin sold about $49M out of their Massachusetts office over the past 12 months according to MLS and that’s 97 transactions. By my estimations then their net commissions at the end of the day were somewhere between $350k and $400k. They employ 5 brokers…Presumably they maintain an office, if you have employees you have benefits to pay (rather than independent contractors) then there are the investors maybe they’d like a return on their investment DO THE MATH this business model is toast.

You can blame the downturn but 5 brokers as employees to gross $350-400k over 97 transactions doesn’t work, everybody is working and nobody makes any money WHY do that?

Now they’ll bleed out the rest of their funds until eventually they file and go the way of Foxtons – see you later.

]]> By: AM http://www.futureofrealestatemarketing.com/redfin-downsizes-to-keep-swimming/comment-page-1/#comment-24750 AM Wed, 15 Oct 2008 19:37:43 +0000 http://www.futureofrealestatemarketing.com/redfin-downsizes-to-keep-swimming#comment-24750 My husband and I are trying to sell our home in the midst of this economic crisis. Sadly the only offer we've received so far was put together by a Redfin agent who IMHO either was very sloppy or very inexperienced. The offer was submitted with a pre-approval letter that showed that the buyer could afford to pay another $15k (sloppy) AND the financing that the buyer had in place was FHA and the agent wasn't aware that FHA won't loan on a condo dev't w/ less than 4 units. It makes me wonder about these layoffs. My guess is that Redfin probably hasn't been hiring the creme de la creme, which can certainly impact bottom line in this market. My husband and I are trying to sell our home in the midst of this economic crisis. Sadly the only offer we've received so far was put together by a Redfin agent who IMHO either was very sloppy or very inexperienced. The offer was submitted with a pre-approval letter that showed that the buyer could afford to pay another $15k (sloppy) AND the financing that the buyer had in place was FHA and the agent wasn't aware that FHA won't loan on a condo dev't w/ less than 4 units. It makes me wonder about these layoffs. My guess is that Redfin probably hasn't been hiring the creme de la creme, which can certainly impact bottom line in this market.

]]> By: Redfin Forced To Trim 20% of Workforce http://www.futureofrealestatemarketing.com/redfin-downsizes-to-keep-swimming/comment-page-1/#comment-24741 Redfin Forced To Trim 20% of Workforce Tue, 14 Oct 2008 18:07:05 +0000 http://www.futureofrealestatemarketing.com/redfin-downsizes-to-keep-swimming#comment-24741 [...] More new on the Redfin Layoff’s here, here & here. [...] [...] More new on the Redfin Layoff’s here, here & here. [...]

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