Comments on: Impact of Redfin’s ‘13 Minutes’ on Realtor Fees http://blog.realtybaron.com/2007/05/15/impact-of-redfins-13-minutes-on-realtor-fees/ Real estate news and commentary from RealtyBaron.com Thu, 21 Aug 2008 18:08:22 +0000 http://wordpress.org/?v=2.3.3 By: Real Estate Raleigh http://blog.realtybaron.com/2007/05/15/impact-of-redfins-13-minutes-on-realtor-fees/#comment-32792 Real Estate Raleigh Thu, 12 Jul 2007 23:59:22 +0000 http://blog.realtybaron.com/2007/05/15/impact-of-redfins-13-minutes-on-realtor-fees/#comment-32792 So what exactly is Redfin??? So what exactly is Redfin???

]]> By: Adrian Sherwood http://blog.realtybaron.com/2007/05/15/impact-of-redfins-13-minutes-on-realtor-fees/#comment-26352 Adrian Sherwood Thu, 31 May 2007 03:03:15 +0000 http://blog.realtybaron.com/2007/05/15/impact-of-redfins-13-minutes-on-realtor-fees/#comment-26352 Redfin's business model is verystrong, it exploits three entry points that the NAR leadership has failed to address: 1. Superior time management (Allows for MUCH HIGHER profit margins when actual work time is factored in) 2. Consumers are more sophisticated( YOUTUBE & MYSPACE) and comfortable with computers. So, when an agent says "I'll upload pictures to the MLS" the consumer is thinking 'my 12 year old can do this'. 3. Free publicity from the DOJ to 'Sixty Minutes' has forced the NAR to allocate resources to try and deflect the media blitz. Basically, it boils down to performance and how that perfromance can help the seller reach his goal. The fact that Redfin has to be licensed, just like any other agent, effectively negates any comments directed their way from full service brokerages. Couple that with clients that are comfortable with uploading pictures and video, and the percieved value of agents drops because this is not seen as dificult. Finally, I believe that NAR's stance on the issue of listing control will ultimately lead to its undoing. Even if the NAR wins against the feds they lose because their concerns are not aligned with the customers. They have provided a blueprint on how they can be beaten. Redfin’s business model is verystrong, it exploits three entry points that the NAR leadership has failed to address:

1. Superior time management (Allows for MUCH HIGHER profit margins when actual work time is factored in)

2. Consumers are more sophisticated( YOUTUBE & MYSPACE) and comfortable with computers. So, when an agent says “I’ll upload pictures to the MLS” the consumer is thinking ‘my 12 year old can do this’.

3. Free publicity from the DOJ to ‘Sixty Minutes’ has forced the NAR to allocate resources to try and deflect the media blitz.

Basically, it boils down to performance and how that perfromance can help the seller reach his goal. The fact that Redfin has to be licensed, just like any other agent, effectively negates any comments directed their way from full service brokerages.
Couple that with clients that are comfortable with uploading pictures and video, and the percieved value of agents drops because this is not seen as dificult.
Finally, I believe that NAR’s stance on the issue of listing control will ultimately lead to its undoing. Even if the NAR wins against the feds they lose because their concerns are not aligned with the customers. They have provided a blueprint on how they can be beaten.

]]> By: shaun mclane http://blog.realtybaron.com/2007/05/15/impact-of-redfins-13-minutes-on-realtor-fees/#comment-25126 shaun mclane Thu, 17 May 2007 15:05:02 +0000 http://blog.realtybaron.com/2007/05/15/impact-of-redfins-13-minutes-on-realtor-fees/#comment-25126 The 60 minute effect seems to be spreading. Howard Clark did a piece yesterday on his radio station discussing (in favor of) the 60 minutes piece and the changes RE faces as Redfin and others start shaking up the industry. The 60 minute effect seems to be spreading. Howard Clark did a piece yesterday on his radio station discussing (in favor of) the 60 minutes piece and the changes RE faces as Redfin and others start shaking up the industry.

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