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Contributor
Cougar
Posts: 39
Registered: ‎02-16-2013
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Bias against Redfin?

I was at an open house today, and overheard a conversation between listing agent and potential buyer.  Agent asks if Buyer has an agent, and he says he used to use Redfin to place a few offers on homes but never got one accepted.  Agent scoffs and says, "Of course you didn't get accepted.  We hate Redfin."

 

I don't understand enough about the RE business to know where her comment is coming from.  Don't they get the same commission regardless?  Why would it matter if it came from a Redfin agent vs another agent?  Is it that they feel they do more work than a Redfin agent who has teams, and therefore does not want to reward them?  Or is it that they feel the whole model is a threat to their business?

 

I've been happy with my Redfin experience so far but am concerned that in this hot seller's market I may end up at the bottom off the list based on my association with Redfin alone.  Granted, this is a Redfin forum so I expected biased answers but I am hoping to better understand if I'm at a disadvantage?  Am I better off using a partner agent so I don't get labeled?

Silver Super Contributor
ptiemann
Posts: 1,227
Registered: ‎08-07-2009

Re: Bias against Redfin?

Redfin provides the service for less (rebate to buyers.. I don't know about their listing fee). Thus Redfin undermines the traditional 6% commission. There may be other reasons, but I suspect this is a major one.
Regular Contributor
RWW
Posts: 63
Registered: ‎03-14-2012

Re: Bias against Redfin?

Traditional RE agents know the writing is on the wall.  Some countries are well ahead of others on this front, but companies like Redfin are to be commended for shaking up the status quo IMHO.  Agents are apart of a cartel, call it like it is.  They even know it themselves, otherwise they wouldn't have cut a deal years ago to share MLS info vs going to court and risking an anti-trust trial.

 

Long live Redfin. 

Gold Regular Contributor
sheriff
Posts: 2,342
Registered: ‎06-01-2012

Re: Bias against Redfin?

[ Edited ]

Redfin charges 1.5% to list a home and pays the buyer's agent 2.5%.  They also give a discount if you buy with a Redfin agent or partner agent.  So naturally traditonal agents don't like their commissions being cut.  Buyer's agent in many cases gets 3%.

Regular Contributor
ANOM
Posts: 121
Registered: ‎06-09-2009
0

Re: Bias against Redfin?


Cougar wrote:

I was at an open house today, and overheard a conversation between listing agent and potential buyer.  Agent asks if Buyer has an agent, and he says he used to use Redfin to place a few offers on homes but never got one accepted.  Agent scoffs and says, "Of course you didn't get accepted.  We hate Redfin."

 

I don't understand enough about the RE business to know where her comment is coming from.  Don't they get the same commission regardless?  Why would it matter if it came from a Redfin agent vs another agent?  Is it that they feel they do more work than a Redfin agent who has teams, and therefore does not want to reward them?  Or is it that they feel the whole model is a threat to their business?

 

I've been happy with my Redfin experience so far but am concerned that in this hot seller's market I may end up at the bottom off the list based on my association with Redfin alone.  Granted, this is a Redfin forum so I expected biased answers but I am hoping to better understand if I'm at a disadvantage?  Am I better off using a partner agent so I don't get labeled?


I had the same reservations initially, but recently bought with Redfin. Bottom line, seller does not care much about which agent represents the buyer (unless obvious incompetency/dishonesty/laziness etc). And seller is the one making decision. Imagine, as a seller, being presented with 10 offers, and the best one is from Redfin, would you care? Ultimately the terms of your offer matter (the offer amount, conditions, contingencies, etc). 

 

I got Redfin hate from agents sitting at open houses. Their motivation is to find new clients, and of course they are not thriled about competition. They were telling me I would not be able to buy anything in the neighboorhood. Eventually I stopped telling which agent I worked with, just saying that I have an agent and moving on to see the house :smileyhappy:

 

By law seller agent is required to present ALL offers to the seller and seller is the one picking the best one. 

Contributor
Cougar
Posts: 39
Registered: ‎02-16-2013
0

Re: Bias against Redfin?


ANOM wrote:

Cougar wrote:

I was at an open house today, and overheard a conversation between listing agent and potential buyer.  Agent asks if Buyer has an agent, and he says he used to use Redfin to place a few offers on homes but never got one accepted.  Agent scoffs and says, "Of course you didn't get accepted.  We hate Redfin."

 

I don't understand enough about the RE business to know where her comment is coming from.  Don't they get the same commission regardless?  Why would it matter if it came from a Redfin agent vs another agent?  Is it that they feel they do more work than a Redfin agent who has teams, and therefore does not want to reward them?  Or is it that they feel the whole model is a threat to their business?

 

I've been happy with my Redfin experience so far but am concerned that in this hot seller's market I may end up at the bottom off the list based on my association with Redfin alone.  Granted, this is a Redfin forum so I expected biased answers but I am hoping to better understand if I'm at a disadvantage?  Am I better off using a partner agent so I don't get labeled?


I had the same reservations initially, but recently bought with Redfin. Bottom line, seller does not care much about which agent represents the buyer (unless obvious incompetency/dishonesty/laziness etc). And seller is the one making decision. Imagine, as a seller, being presented with 10 offers, and the best one is from Redfin, would you care? Ultimately the terms of your offer matter (the offer amount, conditions, contingencies, etc). 

 

I got Redfin hate from agents sitting at open houses. Their motivation is to find new clients, and of course they are not thriled about competition. They were telling me I would not be able to buy anything in the neighboorhood. Eventually I stopped telling which agent I worked with, just saying that I have an agent and moving on to see the house :smileyhappy:

 

By law seller agent is required to present ALL offers to the seller and seller is the one picking the best one. 


Thanks for the info!  Good to know that the seller will see all offers, but I guess that only works if I'm far and away the best offer.  If I'm close, I still have the risk of them taking my offer and countering to another offer to match, but I guess that can happen whether its Redfin or any other agent they don't like.  It's too bad there's so much hate, I love the Redfin model so much (even if I didn't get a rebate) and hope they succeed!

Gold Super Contributor
TerriM
Posts: 3,325
Registered: ‎05-02-2011
0

Re: Bias against Redfin?

[ Edited ]

I've had one agent outright say that Redfin offers aren't considered, some of them ask why I like Redfin, and some of them offer to meet Redfin's rebate.  The guy who outright said that Redfin offers won't be accepted was creepy and I wouldn't want him as my agent anyways.  But I think he was just saying that to try to intimidate me--that's the kind of guy he was.  He kept following me around the open house asking questions while glaring at my misbehaving son.  He should have just let us look and leave.

 

When I go to open houses now, people ask how I saw the listing or found out about the open house, and I say "Redfin's website." I have never had a negative comment at that or even anyone say "oh, have you tried our website?"   When they ask me if I'm working with an agent I tell them "Jane Hansen" because she's the agent I tour with most right now.  (I used to say "Mia Simon" because that's who I toured with most before, but she's moved on). That avoids any Redfin discussion and makes them feel better because it's a person not a company.  If they've known Mia or Jane, they've always had positive responses like "Oh I know her--she's nice."  I've never said "Brad Le", though I'd be really curious what response that might get as he is probably pretty well known in my area and made the top 100 realtor list  in 2011 based on total sales.  I think he submits around 50 offers a month. But that would be lying as he's not currently the bidding agent assigned to me. :/

 

As for the buyer's rebate, I think industry-wide there's been some move to 5% commission total.  In the Bay Area, things move quickly enough that competition probably made that possible.  Either way that's still a nice chunk of cash.  I doubt any buyer's agents are going around saying "Oh, we don't put bids in on houses only offering 5% rebate."  So that's really the seller's choice--what agent they want and if they can negotiate a 5% commission.

Gold Super Contributor
TerriM
Posts: 3,325
Registered: ‎05-02-2011
0

Re: Bias against Redfin?

PS:  The most difficult situation is when you have a friend who is a non-Redfin agent who asks why you're going with Redfin.  We're in that situation, and it's horribly awkward for me.  In an industry which is about people, and where people get paid on commission, deciding to go with a company instead of a person is like slapping someone in the face.   I know this friend really needs the commission, and I like him and trust him, but we also need the rebate, and given how much he probably gets (I think the newer agents get less than 40% of the 2.5-3% commission), I calculated that he'd be better off if we just wrote him a check out of  our rebate than actually buying through him.    Which of course would be just plain weird, but still......  Thankfully we started touring with Redfin before we met him, so I didn't have to actually leave him to go with Redfin....  But talking with him about houses, I understand that difference that Redfin makes.    He talks about a house as "a cute 3BR".  I look at it as "ok with a nice backyard", but smaller than I wanted with rodent crap in the attic and a termite ridden porch that's ready to collapse.  Jane points out that the paint job is fresh, but there's still a crack in the ceiling showing through.  I can tour with Jane, and we may go into  a house look around and go "What the heck?"  and start figuring out how a house got the way it got (additions, deletions, crappy basement remodelling, termites, kitchen remodels that make no sense, half-converted garages, bank-owned rentals with dry rot and 8 tenants....).  I feel like I need that second eye to tell me what I'm getting into.  But it's his job to sell me a house, whereas it's only Jane's job to show me a house.

 

The funniest experience I had was when my father-in-law was in town and we toured a house together  that was too small but otherwise nice and had a great kitchen, and he says to me "tell the agent you'll consider the house if he'll kick in some of his commission."  I laughed and said "Redfin agents don't get paid on commission--they can't do that...  Besides, this guy will make more money if I keep touring than if I buy the house." :smileyhappy:

Platinum Trusted Contributor
elt1
Posts: 5,021
Registered: ‎01-04-2010
0

Re: Bias against Redfin?

don't kid yourself, Jane's job is to sell now just show houses...NO sales, no money for Redfin and they are out of business....

Regular Contributor
wc_netzero
Posts: 106
Registered: ‎07-24-2007

Re: Bias against Redfin?

[ Edited ]

The friend thing is hard.  When we were looking, a good friend asked us why we were not working with this friend and with an acquaintance-reference instead.  I told the friend that our policy was that we don't want to mix friendship with something as large as a house purchase.  If something goes wrong with the house purchase, that can readily kill the friendship.  That didn't go over that well but the friend seemed to understand.