Redfin Woos Buyers With New Web Site Features
It seems to happen like clockwork these days, Redfin launches a new feature on its website – Mike Arrington writes another fawning review on Techcrunch.
Don’t get me wrong, I like Redfin. I really admire what they are trying do. Plus, Glenn Kelman is a really nice guy and an absolute master at playing up his underdog story (see Forbes’ Swimming With Sharks). No wonder Arrington gets lured into writing nonsense like “[Redfin] is doing its best to completely remove real estate agents and brokers (and their absurd fees) from at least half of a home sale.”
Personally I’ve always felt that the fact they compensate their agents based on customer service is an intriguing idea and is long overdue change to the traditional broker model. But there’s certainly no question their discount model is a tough one to pull off, especially in this market.
That said – Redfin still has one of the best broker websites out there and the new release they pushed out overnight continues to build on their industry leading interface. A few highlights from their press release:
Redfin increased the frequency of listing updates from ten of its 16 member MLSs, allowing Redfin.com users to access new listing information as quickly as 15 minutes within a property’s being listed, re-priced or sold.
No brainer. More frequency means better search results. I doubt in most markets these days that inventory is moving as quickly as it was a couple of years ago, so having this freshness isn’t necessarily going to give buyers an edge. But it still nice to have.
Redfin also now provides for each listing:
- a set of similar listings and recently sold properties
- a complete history of any price changes since the listing became active
- a second market value estimate from eppraisal.com
- local Redfin blog and message board conversations
- photographic bird’s-eye views of the property.
I’m all for more data wrapped around listings. It’s the failing point for most brokers these days. And it’s one that search tools like Roost and DotHomes make so painfully obvious to buyers too – listing landing pages on most broker sites are absolutely horrible (see Building a New Real Estate Home Page).
(Aside – Interesting they chose to go with estimates from eppraisal and not their Puget Sound neighbors Zillow. Bad blood brewing in Seattle?)
More:
Redfin.com users now can use neighborhood outlines as search boundaries, calculating median price, price per square foot and other metrics for that neighborhood. For the first time, users can download data to a spreadsheet for an in-depth analysis. Home buyers can use the data to prepare a comparative market analysis to estimate the value of a home.
Love it.
Can I say that again? Love it.
I’m with 4realz.net; this is the killer feature in the new release. Freeing up the data is another no brainer and even more so when it’s a move you can make to court buyers. Brokers of all shades should be thinking of ways that they can engage and retain buyers on their web sites right now. The buyers are out there (especially with the recent rate cuts) and I suspect the savvy ones will flock to the sites with the best tools.
The only thing disappointing with this release is that it reminds me that Redfin won’t be coming to Portland any time soon.
If you enjoyed this post, make sure you subscribe to my RSS feed!
Make sure to follow Inman News on Twitter too!
9 Comment(s)
2 Trackback(s)
- From Big News: Ignore all that fine print, tear through all that red tape — Redfin.com supports Safari at last! | BloodhoundBlog: Real estate marketing and technology blog | Realtors and real estate, mortgages, lending, investments | Jan 31, 2008
- From Comp Homes from your Mac Baby | Jan 31, 2008
Nick | Jan 31, 2008 | Reply
Did you mean the plural of “woe” (suffering: misery resulting from affliction) or “woo” (seek someone’s favor; “China is wooing Russia”)?
Cynthia Pang | Jan 31, 2008 | Reply
Hi Joel,
No bad blood up here in Seattle! We still provide Zillow information, right next to eppraisal … look under “Home Value Estimates” on the Listing Detail Page. Here’s an example: http://redfin.com/stingray/do/printable-listing?listing-id=670981.
And we’re glad you like the new features!
Regards,
Cynthia Pang
Redfin
Joel Burslem | Jan 31, 2008 | Reply
@Nick and @Cynthia – Nice catches…that’s the problem with BBC (blogging before coffee). I’ve updated the post with your edits.
Galen | Jan 31, 2008 | Reply
We consider ourselves flattered. Pretty much across the board.
Michael Citron | Jan 31, 2008 | Reply
Enjoyed reading your post and browsing Redfin.com’s website. After reviewing their pdf brochure on how Redfin’s selling services compare to a traditional real estate agent, I have some concerns that maybe the people at Redfin can answer in regards to the home selling process:
1. “Personal Connection With Agent” How can Redfin use the word, “personal,” when you do not physically meet with a Redfin seller in the beginning of the listing period? Is a phone conversation really personal?
2. Comparative Market Analysis: Even with the algorithms becoming more reliable on Zillow.com and other home estimate websites, can a computer program really give you better accuracy than a “personalized” marketing plan from a live, in-person, expert real estate agent? Remember, homes are owner’s largest financial assets!
3. Refin suggests that “maybe” typical agents advertise their property listings online. With the NAR stating that over 81% of home buyers use the Internet to find homes, the majority of agents are certainly (NOT MAYBE) implementing an online marketing plan for their listings instead of traditional print media.
4. Redfin also suggests that Staging Coordination is extra. Many agents are taking home staging classes at their local boards in order to educate their sellers on the importance of the product of their listing. Of course, we do not charge extra for this service. We want our listings (and listing images) to stand above the competition and increase or showings and commissions. Unless we educate our sellers and point out the needed staging changes, most sellers will just take pictures and stage their homes as they live in the home, which may detract potential home buyers.
5. My biggest concern: Does a buyer, who is working with an agent or without an agent, know that Redfin is a discount brokerage? If they do, won’t they work the “$12,000″ average break in commission into their asking price anways. Are agents responsible to tell their buyers that sellers are paying less commission to the listing agent and advise them to put in a lower offer?
Sorry for the long post, and hope to hear some engaging responses.
6. Are Redfin sellers really saving $12,000 on average when you look at the big picture on the closing statement as to the net proceeds?
Prudential Hawaii | Feb 1, 2008 | Reply
The price changes are cool. But still leave a lot on the table in terms of real estate analytics data. Wasn’t able to view individual properties on Microsoft’s “Birdseye View” technology. The “Similar Listings” functionality is good way to help manage seller’s expectations about pricing.
Matt Goyer | Feb 1, 2008 | Reply
Hey Prudential Hawaii,
What are you looking for in terms of real estate analytics data? We’re always looking to add more.
And we definitely added the similar listings to manage pricing expectations.
Matt
Redfin Lead Product Manager – Search
Michael Citron | Feb 1, 2008 | Reply
Redfin… Why no response to my detailed questions and concerns regarding your home listing services? I thought Blogs were an open forum to discuss and debate thoughts and perceptions. Or, can you not handle the truth?
Glenn Kelman | Feb 5, 2008 | Reply
Hi Michael, my apologies for the delay in responding to your excellent comment. Redfin has been busy. Here are our responses to your questions:
1. How can we say that clients have a personal connection with an agent? It is clear throughout our site and other materials that the only opportunity for clients to meet our agents in person is via the occasional event at a coffee shop or in our office. The reason we emphasize a personal connection via email and telephone is that clients worry about working with a different person at every turn when in fact there is one agent who is responsible for the customer’s success, who is familiar with the deal history, who offers the client his or her email address, cell number and direct dial number.
2. Can a computer really generate a comparative market analysis? A computer can provide some data for a comparative market analysis, but an agent’s judgment is valuable. And without such judgment the client is likely to overprice the listing and suffer on the market. Before Redfin lists a home, two Redfin agents typically prepare two separate comparative market analyses to ensure we agree on the price range; if there is significant disagreement, we perform a third. The weakness in our approach is that the agents have not seen the home, only a set of photos, but after having visited some homes we found that this made the customer feel better without having a material effect on the outcome of the analysis. That said, preparing a CMA without having seen the home is a weakness in our approach.
3. Don’t all agents market homes online? Even if we grant as you say that the majority of agents market homes online, this is not a guarantee. With Redfin, it is a term of our service that the property will be systematically posted to other websites multiple times a week. We have measured the effect of different online tactics, and optimized our strategy. There are few other brokerages that offer a defined, regular, sustained online marketing program as a term of its service.
4. Isn’t staging an important service for the brokerage to offer? We are now changing our listing program to include with our fee professional photography; we’re also preparing an online guide to staging a home, with photos to explain how different tactics improve a home’s appearance. That said, we still feel that a professional stager with a warehouse full of furniture is likely to deliver a better result than we can alone. We try to persuade our clients to think of the commission savings as money that can be used in part to invest in material improvements to the property, through staging, landscaping and painting. Some traditional agents offer such services at no additional charge; few offer $12,000 worth of services.
5. Do buyers ask for the commission savings the seller was anticipating getting for himself? We have never seen a buyer factor into his or her pricing the seller’s commission savings. Of course, our listing almost always offer a 3% commission to the buyer’s agent; this isn’t hypocrisy on our part, only pragmatism. We don’t want to discourage any buyer’s agents from recommending the property, and we are not trying to dictate to other brokerages what fees they should reap.
6. Are sellers really saving $12,000? Yes, this is the approximate average net savings, notwithstanding whatever money the customer invested in the property that he wouldn’t have had to invest himself if he had to work with a traditional agent. If a more accurate number were $10,000, we would have used that number; the commission savings are significant in any event, and we would rather be credible than aggressive in our claims. The number may actually decline as we enter less lucrative markets, and as housing prices overall decline. And we have been trying to develop a fair way to measure if we get a better or worse outcome than other brokerages, as this of course is the ultimate arbiter of our service’s value.
Thanks again for the great questions, and thanks Joel for your excellent post. I apologize in advance for any typos or gaffes; I had to write this in a rush!