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I dont have much experience with Redfin, even though they are heavy in my region, but my one interaction (that went under contract and through to settlement), definitely worked in my clients favor, and for that, Redfin (and the particular agent I dealt with) can continue as they are for all I care
They listed a house on a Thursday, took our well below list price offer on Friday, didn't even let it sit one weekend (in a very competitive market, difficult for buyers (we'd already been beat out twice on other properties in that price range). Walked all over them during negotiations, including inspection, but had to pick up the ball for a couple things that the listing agent dropped. no biggie.. It's possible the seller had given their agent a bottom dollar number etc to negotiate against, so maybe they were okay with taking an offer a good bit below market price, and negotiate inspection items pretty loosely (to my clients favor) to "just get the deal done"..
Concerning communication with the listing agent, I will say that it was difficult to get ahold of him, and it appears that as a company (locally) they are c/p the same language in their listings
"Agent prefers email or text for questions; all phone calls will be returned as soon as possible."
Wasn't a big deal for me, as we got it under contract quickly, and once under contract, I woudn't expect a buyer to be concerned with (lack of) communication issues as that's my job.
In the end, my clients got a great house for a great price, and I absorbed some difficulty along the way with dealing with the agent. Didn't matter to me.
I've said it before and will say it again, the biggest fault I see in my area is lack of experience in Pricing homes. I've seen Redfin seriously under price some homes not knowing the product they were selling and an appreciating market.
Yes Mr Seller you save 1-2% but you just left $20,000 on the table you could have put in your bank account.
I've said it before and will say it again, the biggest fault I see in my area is lack of experience in Pricing homes. I've seen Redfin seriously under price some homes not knowing the product they were selling and an appreciating market.
Yes Mr Seller you save 1-2% but you just left $20,000 on the table you could have put in your bank account.
And what relevance is the listing price to the seller's bottom line?
Last house I bought was listed low and there was a bidding war. I paid about 200k over asking price. You better believe I was not laughing at the agent for pricing the home low or for being naive. I didn't from the start and I certainly didn't in the end. As always, the market determines the sale price, not the list price. And this low pricing agent got a very good price for his seller.
Many years ago, another agent told me that he was confident he could get X for one of my homes. But let's put it on for "X minus 50k" he said. Generate more interest. He got me X plus 25k.
Get used to it, sellers don't want to have to pay 6% when the listing agent barely does any work, plus half the time the buyers check out houses online and thru street views on Google so they know what they want and don't want. Gone are the days where an agent has to take you to a house you've never seen before.
Consumers gladly pay 6% routinely.
They choose that rate from among myriad alternatives.
And what relevance is the listing price to the seller's bottom line?
Last house I bought was listed low and there was a bidding war. I paid about 200k over asking price. You better believe I was not laughing at the agent for pricing the home low or for being naive. I didn't from the start and I certainly didn't in the end. As always, the market determines the sale price, not the list price. And this low pricing agent got a very good price for his seller.
Many years ago, another agent told me that he was confident he could get X for one of my homes. But let's put it on for "X minus 50k" he said. Generate more interest. He got me X plus 25k.
That does work sometimes. But not in this case. The price is high enough that an appraisal will be difficult to impossible. Might find a buyer willing to go over with additional cash or a cash buyer...but not in this house. Top price for neighborhood.
Any thinking agent would have held for at least the weekend to see what developed. I'll post the outcome...maybe they really did get a close out price...we'll see
That does work sometimes. But not in this case. The price is high enough that an appraisal will be difficult to impossible. Might find a buyer willing to go over with additional cash or a cash buyer...but not in this house. Top price for neighborhood.
Any thinking agent would have held for at least the weekend to see what developed. I'll post the outcome...maybe they really did get a close out price...we'll see
My comment was in reply to Rakin who was trying to say that Redfin prices too low and therefore leaves money on the table for sellers. It doesn't work that way and pricing low, in itself, says nothing about anything, including how much the sellers will put in their pockets when all is said and done.
Consumers gladly pay 6% routinely.
They choose that rate from among myriad alternatives.
While some consumers pay 6% -they likely don't do it gladly. Many do it because they don't know any better or they feel forced to match compensation in the market so that agents will show their property.
If they are referred to an agent by a friend or associate - and that agent charges 6%, does that agent give them a myriad of alternatives?
Let's be real. If consumers were educated to all of the options available to them - and knew how the system worked - few would pay 6% because they simply don't have to anymore to get their house sold.
While some consumers pay 6% -they likely don't do it gladly. Many do it because they don't know any better or they feel forced to match compensation in the market so that agents will show their property.
If they are referred to an agent by a friend or associate - and that agent charges 6%, does that agent give them a myriad of alternatives?
Let's be real. If consumers were educated to all of the options available to them - and knew how the system worked - few would pay 6% because they simply don't have to anymore to get their house sold.
yadda-yadda.
People shop prices for cleaning products, pizza, and beer. Not for agents, and that is the agent's fault? I don't buy that.
Redfin is bad IMO but this isn't uncommon. Different reasons sometimes but same outcome.
There are a couple brokerages here that, as a rule, pay their agents more for selling a house to their own broker.
Howard Hanna does this, huge in this region. Berkshire does this as well.
So if a house goes up in a popular area, and 20 people want to see it..only the 3 represented by that broker will get to see it and have a shot.
Taking money out of the sellers pocket to put in their brokers pocket, totally unethical but it is a cornerstone of their business model.
How do you have any idea this is what happened? In fact when you search sold homes on Redfin they like to advertise "Bought with Redfin" or "Sold by Redfin"...I don't think I've ever seen "Bought and Sold by Redfin."
It absolutely was. No question. In fact my offer was never submitted.
The point was simple. The Redfin system is non-responsive. And in this case cost the Redfin client. Maybe a lot.
Legitimately good homes are selling in under a day in the current market. The Redfin agent is working for the Seller and must deliver all offers to them. If the Seller accepted a full price (or price plus) conventional offer immediately on the first day, even if the Redfin agent cautioned them to wait, there is nothing you or the Redfin agent can do about it.
Admittedly they should have called you back, they may have been in a closing or other negotiations at the time you called. Or so PO'ed at their client for not waiting for additional offers that they needed time to cool off.
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