[svelte]

[quote=scaredyclassic]
I’m wondering what the pitfalls are to representing one’s self in a sale.[/quote]

My Dad has done that. Worked out fine.

However, he did not recommend it. After several buying and selling transactions, he said it would be better to BUY from a FSBO and sell through a real estate company.

Here’s why:
When you buy from a FSBO, you know they’ve had less traffic because realtors shun FSBO homes…therefore, you can negotiate the price lower with the seller.

When you sell using FSBO, the shoe is on the other foot: you get less traffic because realtors shun FSBO and potential buyers know it and offer you less. Therefore, what ends up in your pocket is not much different than if you listed with someone but you end up with about the same amount of money.

That was his theory. Sounds reasonable to me, though it is opposite what my intuition would think.

[svelte]

[quote=EconProf]
So the question remains: Will Redfin, and maybe similar companies (Zillow?) change forever the process of buying and selling real estate?[/quote]

In my opinion, there is room for both and neither will die.

First time buyers in particular need to be guided through the buying process. Redfin can do it, but some may want an even closer personal touch that a traditional realtor can do.

I just guided a relative through the first time buying process and they were extremely confused even though they had a traditional realtor (RE/Max). They’d call me each evening and tell me what the realtor said, and either the realtor was way off or they mis-translated what they thought they heard…I still had to give a LOT of guidance even though they had a traditional realtor.

The internet is giving folks an entirely new option for buying. Even in cars sales – look at the Tesla model where there are no dealerships, though you can go to a company storefront to test drive.

The ratio of traditional vs net-based will continue to change with net-based deals becoming more prevalent, especially with those who are younger.

[svelte]

We shall see if Redfin is profitable in 5 years.

I didn’t even know about the iBuyer concept – looks like it has about 3% of the market share of the 18 biggest markets:

https://www.prnewswire.com/news-releases/ibuyers-rapidly-snap-up-market-share-across-southern-metros-redfin-finds-300972952.html

Seriously, if I were buying and selling a home I wouldn’t really care if Redfin was profitable right now – I’d just look at how I could get the most money.

As for the quality of the agents, I can’t really vouch because I’ve only dealt with two and they were both great. I could tell you horror stories about traditional realtors I’ve dealt with. For example, when I was selling a house about 15 years ago, my first realtor approached me with a deal to sell my house for $100K over the asking price if I would return that $100K to the buyer after the transaction. I fired him. Another one told me he submitted my bid on a home in northern California to the seller’s agent. When I didn’t get a response from the seller, I contacted him directly. Apparently the offer was never presented to him. We were able to work out a deal.

[svelte]

[quote=sdrealtor][quote=Coronita]I thought I read somewhere that a few months ago Redfin laid off/furloughed half of their staff.

And I think tech/investor funded Compass did close to 20% RIF around April…

Is that true?[/quote]

LOL another house of cards. They have hundreds of software enginerds making Coronita wages. The is no way real estate brokerage profitability supports those salaries. That company was built by VC’s to be sold not to change the industry. I’ll take this bet from anyone who wants to take it also[/quote]

Wow, Redfin really upsets the realtors! House of cards! The more information gets in the hands of the general public via the internet, the less need there is for advisors on anything, from homes to mortgages to finance to autos. Look what has happened to financial advisors – their pay is dropping. Mortgages – lots of folks on here are getting their mortgages online now. And cars – well Carvana and Vroom are taking off. I bought a new car this week and didn’t even consider Carvana and Vroom. I still like to test drive, but there are even other ways to get those – LA Auto Show and Turo for example.

Once old guys like me die off, the conversion will quicken as my kids generation is less likely than I am to deal with an individual – they do everything online now.

I submit to you that the main reason for a realtor or Redfin is to unlock the door to show you the house. Someone needs to keep thieves out. Otherwise, the fair market value can be determined through appraisals and paperwork is via standard form now. At least in California.

[svelte]

[quote=sdrealtor][quote=svelte]All I own are mutual funds…I’m not into the legalized gambling of individual stocks. 🙂

I think Redfin will be a stronger and stronger player going forward. Time will tell which of us is right.[/quote]

I’ll take that bet but advise you against it as I only take bets I know I already won like this one way back when. [/quote]

Ok but let’s define the parameters. When I showed you data with their sales up and their stock price up, you batted those down as not applicable because they didn’t fit your criteria of a successful company for some reason.

What criteria can we use? Their number of homes sold per year higher in 5 years than today? I think that’s a fair estimation of “stronger”.

[svelte]

[quote=EconProf]The above comment referring to the 1/2% “refund” if you go on to Redfin for your purchase, after listing & selling through them.[/quote]

lol thanks for the clarification – was wondering what it was about. 🙂

Here are the specifics:

https://www.redfin.com/disclaimer

[svelte]

[quote=Coronita]I thought I read somewhere that a few months ago Redfin laid off/furloughed half of their staff.
[/quote]

I’m not sure if it was half, but they did go through a furlough. So did my company. So did a lot, if not most, companies.

The good news at my place is that they brought them all back. And it is starting to look like we’re going to need to hire! We just got permission this week to start advertising for any position we can’t fill internally.

[svelte]

All I own are mutual funds…I’m not into the legalized gambling of individual stocks. 🙂

I think Redfin will be a stronger and stronger player going forward. Time will tell which of us is right.

[svelte]

When my son bought his house, we did a lot of research before he bought. I’m that type of guy – I look at things from every angle possible before we jump in.

I know he did not overpay for his house and actually got quite the deal, so he did not leave money on the table – I can guarantee you that.

For less thorough people, I can see where a traditional type of realtor would make sense. We aren’t babes in the woods when it comes to buying and selling. FYI I did sell a house I owned in northern Calif in 2019 and I did not choose Redfin to do the sale. I felt that would be a drawback because the home was in a small tight-knit community and I felt the realtors would discriminate against a Redfin-listed home…though that is getting harder and harder to do with the internet and all.

I evaluate each situation and choose a realtor appropriately. With my Nor Cal home, I felt Redfin did not make sense. With my son’s San Diego purchase, they did.

Also, Redfin gets a bit stronger each year.

[img_assist|nid=27214|title=2019 Redfin Market Share|desc=|link=node|align=left|width=466|height=203]

And somebody somewhere is betting on their stock:

[img_assist|nid=27215|title=Redfin Stock Price Aug 2020|desc=|link=node|align=left|width=466|height=291]

[svelte]

Kind of predictable that realtors on here would not like Redfin.

There may be valid points to their position, but there are also folks who use Redfin and get a pleasant result – with more money in their pocket at the end of the day.

Different strokes for different folks.

[svelte]

[quote=svelte]

I wonder how all of this work-from-home is impacting the planned redesign of Horton Plaza into tech office space. Seems like terrible timing…HP can’t seem to catch a break.[/quote]

Horton Plaza may be okay. Just ran across this article this morning:

https://www.sandiegouniontribune.com/business/story/2020-08-18/amazon-says-it-will-hire-an-additional-200-workers-at-san-diego-tech-hub

“While office space leased by tech companies declined 46 percent nationwide last quarter, San Diego was one of only three cities — along with Washington, D.C., and Atlanta — to see an increase in tech office demand, according to commercial brokerage CBRE. San Diego generated 365,000 square feet of tech leases in the quarter, up 58 percent from its 2019 quarterly average.”

[svelte]

[quote=sdrealtor]

As for your friend my experience is they love them until they dont. Most of the top producing agents there move on after a few years.
[/quote]

You could say “employees love them until they don’t” about virtually any company in any industry.

Top producers can probably make more $$ on their own, my friend is very sharp and appreciates the security provided by the great benefits that Redfin offers. He went through a very costly medical issue last year and they covered the expenses and gave him generous time off to recuperate. I don’t think he’s going anywhere soon, he’s a very loyal guy.

[svelte]

My son has bought through Redfin, transaction went very well. As I recall he got cash back when the sale completed.

Also have a close friend who is a Redfin agent, he loves the company and touts them every chance he gets, whether you use him specifically or not.

I think if I ever sold again (not likely) that is the route I’d go.

[svelte]

me, i like it here in the burbs jezz chillin and relaxin

[svelte]

[quote=spdrun]

hey spent months with their 1 year old only being able to watch the traffic go by out the window, not leaving the apartment.

Out of curiosity, why did they do that? No US city had a lockdown that prohibited going outside to that extent.[/quote]

Because the mother is pregnant with twins. She has a difficult time with pregnancies and they didn’t want to be exposed to CV to ensure it did not impact her unborn.

[Author]

Posts