I’d like to bring this forum topic back to it’s original question–is the Redfin model superior to, and about to displace, the traditional model of choosing a broker to sell one’s house?
This suspicion is prompted by the observation that, while house prices since the trough in about 2008 have doubled or tripled, the 6%, or perhaps now 5% cost to the seller has ballooned their compensation. Meanwhile technology has enabled buyers and sellers to access far more market information that was previously exclusive to brokers. Along comes a market disrupter, Redfin, that promises to radically cut selling costs. In addition, Redfin promises to vastly increase the home sellers exposure to potential buyers via virtual tours that artfully showcase the property with the new visual technology for potential buyers. COVID-19 and sellers’ reluctance to allow unlimited strangers to traipse through their house at inconvenient times or host awkward open houses further favors the Redfin approach.
SDrealtor and Jim the Realtor have correctly pointed out that having an knowledgeable and experienced realtor list your home and guide you through the selling process is valuable. But that roughly 2% of your selling price is a lot of dollars given today’s house prices. And Redfin’s virtual tours showcase the house in minutes to a market increasingly comfortable with new ways of doing business.
New technology, and now COVID-19 have disrupted so many industries and ways of doing things. I dropped the Union Tribune and WSJ after decades of subscribing because I now get my news free or at little cost on-line. Magazines are mostly gone. I’m guessing half of movie theaters are doomed. Malls are dying…the list goes on.
So the question remains: Will Redfin, and maybe similar companies (Zillow?) change forever the process of buying and selling real estate?
