Redfin Pushes the Envelope
by tropicdiver
Redfin’s new release is breaking new barriers, literally - they are adding bank-owned foreclosures and for-sale-by-owner inventory along side alongside their MLS listings (more from 4realz.net). The first, as far as I know, of any major brokerage to do so.
Definitely a smart move for the company which has long been out front pushing for greater innovation in real estate search experience online.
Redfin says it’s going to support the addition of these listings through a flat fee. Which means, I presume, as a buyer, if you want to put an offer on a FSBO through Redfin, they’ll help you write it up and just charge you X.
To me it signals one thing… with this news, with Roost’s recent launch, several MLS talking about or already syndicating their listings to the major search portals and others busy developing public facing web sites - it looks like we’re in the early stages of a sea change for these organizations. Who knows where that will end up.
One thing is for sure, some people don’t like change. And with this move, Redfin will either raise the ire of the MLSes or spur other brokers down a similar path. In either case, Redfin wins, securing itself in the center of another PR firestorm or being the catalyst for genuine change in the industry.
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9 Comment(s)
1 Trackback(s)
- From I Said I Want to See ALL The Listings | The XBroker Mortgage Real Estate Marketing Technology | Apr 30, 2008
jeeves | Apr 30, 2008 | Reply
Raise the ire? They’re blatantly violating their agreements with MLSes.
Alan Pinstein | Apr 30, 2008 | Reply
I agree with jeeves…. in our area, you aren’t allowed to co-mingle MLS listings with listing data from other sources or they can just cut you off from the IDX feed.
IMHO, this is exactly the type of mistake the boards have been waiting for Redfin to make… this could really backfire on them in a big, bad, way.
Milan | Apr 30, 2008 | Reply
This definitely seems like a risky move. I wonder if it will lead to a lawsuit? Of course it does make sense for consumers and it could give them lots of PR if they were sued.
Thomas Johnson | May 1, 2008 | Reply
Now, Who is going to pay the Redfin buyer’s rebate for FSBO’s? Will there be a disclaimer on the site: “Rebate only available to buyers who purchase traditionally listed home from traditional REALTOR, who we think is out moded, but we need their client’s money so we can give you your money so we can keep our VC guys from dumping us off to Realogy.”
Just asking.
Overland Park Real Estate | May 1, 2008 | Reply
I admire them for trying to keep their free thinking business model but I also agree with some of the comments above…I think a lot of IDX’s would have rules against this.
brecht | May 1, 2008 | Reply
why don’t you just start a redfin fan club
Phil Faranda | May 2, 2008 | Reply
I’m not sure I agree that they are breaking any rules. In the past, I have advertised HUD repos with no flak from my MLS or board. You are allowed to do this (My home state of NY prohibits advertising listings that you don’t have under contract, but HUD homes are exempt), and simply providing data about non MLS homes seems benign to me so long as you have permission.
That said, gimmick companies like redfin have limited potential for one simple reason: real estate companies are built by good agents, not by good theories. And discounters cannot get or keep good agents because they will migrate or start altogether at a firm where they can earn more. Here in New York, we recently saw Foxtons flop, and it was due in large part to mediocre agents who were atracted by the salary and company car.
Zip realty is another new kid on the block here, and their staff is castoffs and newbies managed by suits. It won’t work long term.
This isn’t to say that those of us in the more traditional roles should make the fatal mistake of underestimating the competition, but we should choose our battles. In light of recent events, that battle should be to ensure that banks do not get into brokerage in my view.
Hawaii Life | May 3, 2008 | Reply
I would say smart move by Redfin. We are working on something similar at HawaiiLife.com. Unfortunately, one of the MLS’s we work with does not allow us to display FSBOs along side their MLS listings. We’re trying to come up with a creative solution, though. Stay tuned.
Chuck Marunde | May 4, 2008 | Reply
The way the real estate business develops as technology moves forward with periodic leaps of progress will substantially change the role of the real estate broker. What’s amazing to me is that we still have a massive majority of brokers and agents out there who are still operating with 20 year old business models. Redfin’s model is yet to be proven, but one thing for sure is coming: change in the industry and in the convenience of buying and selling real estate.