Stand Up and Be Heard
Over at Inman News today, Redfin launched its Real Estate Consumer’s Bill of Rights, a ten point piece they hope to eventually take to the National Association of Realtors and MLSes to codify.
At it’s core, the plan calls from greater transparency through all stages of a real estate transaction. From Redfin’s Real Estate Consumer’s Bill of Rights, here are the ten points:
1. Choose the services you pay for
2. Know how your agent makes his money
3. Know when you are committed to an agent
4. Know what services your agent will provide
5. Have an agent that represents only your interests
6. Know the commission refund you can get before you buy a house
7. See all the houses for sale
8. Have an open discussion about a house for sale
9. See all the information available about a house for sale
10. Be sure your agent will show your house to everyone
If you want to sign the petition, go here.
This is a very savvy PR move by the folks at Redfin - it’s bound to get people talking and it’s clearly a way for the company to continue to define themselves as mavericks in the industry (see Redfin Agents More Effective?). I suspect it’s also meant to drive a wedge between the old-guard players. Those that don’t/won’t line up beside Redfin will be labeled “anti-consumer”.
But, I’m with Kevin at 3 Oceans on this one, regardless of motivation - I think it’s high time someone stick up for the little guy here. While you can argue about some of the technicalities on the list (and I suspect many will) - the overall notion is a sound, which is why I’ve added my name to the list.
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5 Comment(s)
10 Trackback(s)
- From Redfin’s So-Called Bill of Rights | Phoenix Arizona Real Estate - Dalton’s Arizona Homes Blog | Apr 2, 2007
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- From The Redfin Model - the future of Estate Agency? - HouseReview | Apr 2, 2007
- From RE Agent in CT » Redfin Consumer Bill Of Rights Is McWeaksauce | Apr 2, 2007
- From RE Agent in CT » Redfin Consumer Bill Of Rights Is McWeaksauce | Apr 2, 2007
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- From REXI Agent 2.0 Development Program - Troublemakers Welcome « The REXI Blog for Real Estate Agents in the know… | Apr 3, 2007
- From Wisest of the crowds » Consumer Bill Rights - thanks Glenn! | Apr 3, 2007
- From NY Houses 4 Sale | Apr 3, 2007
- From Redfin Real Estate Consumer Bill of Rights - sellsius real estate blog - real estate, blogging, business, advertising, marketing, and technology | Apr 4, 2007
Jonathan Dalton | Apr 2, 2007 | Reply
> I think it’s high time someone stick up for the little guy here.
Which little guy, Joel? The consumer of the maverick limited-service real estate company trying to gain some traction with a model which the general public has embraced only in limited doses?
#6 doesn’t address the consumer. It addresses Redfin’s rebate model, nothing more. The assertion that variable commissions exist to screw the buyer or Redfin is ludicrous.
#7 cuts to personal choice. Some sellers opt to sell homes on their own, without the use of a real estate professional. They’re choosing an alternative which by its nature leads to limited marketing. This is their choice. If these homes can’t be found by the buyer or his/her agent, whose fault is that?
#10 again cuts to Redfin’s model. I’ve never refused a showing to an agent simply because of the company they work for. But that’s not Redfin’s point. They want the listing agent to start the process and still pay Redfin for “representing” a client they didn’t represent at the start.
If this were more about the consumer and less about the PR splash, I’d step in line as well. But this is Redfin trying to codify its business model as the moral compass for the industry. And on that, I’ll have to pass.
Incredible Agent | Apr 2, 2007 | Reply
Why is this dictated by one company? I don’t seem to remember a casting call of ideas for the Real Estate Consumers Bill of Rights. The real US Bill of Rights had to be negotiated and ratifed in all 13 original colonies. There were many comprimises and adjustments to it. It certainly wasn’t dictated by one state or individual.
Just because they say they are representing the “little guy” and call it a Bill of Rights, doesn’t make it true. It seems to be more of a ploy to inject their model into the real estate world. I will not be signing the petition until there is an open discussion about what points will be in the Bill of Rights. We’ll see if that happens. Otherwise it’s just a Redfin Bill of Rights and no one will pay any attention to it.
I find it interesting that Glenn likes to use Political tactics for the Redfin PR campaign. I see a lot of similarities between their PR campaign and my days in politics.
Bryant Keefe | Apr 3, 2007 | Reply
I operated a “discount” flat fee company for 3 years in Tucson Arizona and I did not have any of the issue that RedFin struggles with. RedFin appears to be trying to enter their markets with a big sledgehammer instead of building on great service. They create the battle as best I can see. I listed and sold 80-100 units per year as a “discounter” and no one, except me, was worse for wear. My MLS had no issues and my peers were all paid a 3% co-op so they knew no difference. And we represented our sellers just like a good agent should. I elected to do it for less money.
RedFin is making a whole lot of noise for just coming up with the idea of being cheaper and cutting costs by doing less work. That is my frustration with them and other discount models. The only improvement they have created is being cheaper and that just is not worth getting excited about. When will someone actually create an new business model for real estate sales that the consumer will embrace? Cutting prices is not new, unique or diiferent. I closed my discount shop once I realized that being cheaper had no future ecxept really low profit margins.
I would love to see a new brokerage model that benefited the consumer but we may be waiting a long time for that. The consumer is holding strong to the traditional model and with the current market uncertainty I only see the hold being stronger than ever. The consumer is making a choice and they do have choices.
RedFin should focus on providing great service, being a positive force in the real estate community and win them by being better not by their current track of blaming the real estate community for their inability to be successful. Look in the mirror RedFin.
Good Tuesday to you!
Warmly,
Bryant Keefe
Runa | Apr 3, 2007 | Reply
I subscribed too… same reasons.
Helsa | Apr 8, 2007 | Reply
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