Author Topic: Redfin will now let people buy a home without a Real Estate Agent.....  (Read 941 times)

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Offline Soylent Green Is People

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Tech is going to "buggywhip" every industry, and this is one indicator that change is nearer than some might think. Specialized high service Realtors will always be at the ready to help customers who prefer to be "hands off" but for the "hands on" generations to come, where do you see the home buying process going from here?

Yes, this is a very limited range of circumstances in which a buyer might use this service - just as Priceline was the vanguard years ago in the travel agency business - and now look where we are...

Discuss:

https://www.housingwire.com/articles/redfin-will-now-let-people-buy-a-house-in-california-without-a-real-estate-agent/][url]

My .02c

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Re: Redfin will now let people buy a home without a Real Estate Agent.....
« Reply #1 on: December 05, 2019, 04:12:34 PM »
Just wait until Amazon dives into this space like full throttle. (I previously posted an article about this)

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Re: Redfin will now let people buy a home without a Real Estate Agent.....
« Reply #2 on: December 05, 2019, 04:36:54 PM »
Time is ticking. Amazon has already partnered with Realogy Holdings Corp. earlier this year.

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Offline aquabliss

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Re: Redfin will now let people buy a home without a Real Estate Agent.....
« Reply #3 on: December 05, 2019, 09:43:41 PM »
This is a pretty big deal for high end homes.  If you list with Redfin and get one of these offers on your $1M econobox, you’re probably saving $25k in buyers agent commission. 

The million dollar question though (no pun intended) is whether buyers will use this to underbid since it financially benefits the seller in other ways to accept the ‘no buyers agent’ offer.

Sounds weird though to have nobody looking out for your interests during escrow period. 

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Offline woodburyowner

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Re: Redfin will now let people buy a home without a Real Estate Agent.....
« Reply #4 on: December 05, 2019, 10:35:29 PM »
This is a pretty big deal for high end homes.  If you list with Redfin and get one of these offers on your $1M econobox, you’re probably saving $25k in buyers agent commission. 

The million dollar question though (no pun intended) is whether buyers will use this to underbid since it financially benefits the seller in other ways to accept the ‘no buyers agent’ offer.

Sounds weird though to have nobody looking out for your interests during escrow period. 

Who truly looks after your interest during the escrow period.  Both seller and buying agents want to push things to close so they get their commission.  The dollar amount of the commission is just too high for them to not have human nature kick in.  Of course, your respective agent is generally on your side, but when push comes to shove, I don't think any agent can be 100% trusted.   

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Offline Liar Loan

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Re: Redfin will now let people buy a home without a Real Estate Agent.....
« Reply #5 on: December 06, 2019, 10:39:17 AM »
This is a pretty big deal for high end homes.  If you list with Redfin and get one of these offers on your $1M econobox, you’re probably saving $25k in buyers agent commission. 

The million dollar question though (no pun intended) is whether buyers will use this to underbid since it financially benefits the seller in other ways to accept the ‘no buyers agent’ offer.

Sounds weird though to have nobody looking out for your interests during escrow period. 

Who truly looks after your interest during the escrow period.  Both seller and buying agents want to push things to close so they get their commission.  The dollar amount of the commission is just too high for them to not have human nature kick in.  Of course, your respective agent is generally on your side, but when push comes to shove, I don't think any agent can be 100% trusted.   

I do think a good agent helps during the escrow period with things like counter-offering on repair requests and yelling at your lender to get the loan funded.  But is that service worth an extra $25k?

Also, you have to remember that the psychology of many sellers is they want the highest possible price and don't necessarily think in terms of net proceeds.  So in theory the buyer should be able to make a lower offer to offset the 3% commission, but in reality it may bruise the seller's ego to receive a lower offer and increase their odds of rejecting your offer.  Sellers can be just as emotional and irrational as buyers.

That being said, I do like what Redfin is attempting to do here.  They have been attempting to disrupt this business for 12 years now, and I do think they've influenced the traditional brokerages to change their ways some.  I've used Redfin twice, once as a buyer and once as a seller, and I was extremely happy both times.
« Last Edit: December 06, 2019, 10:57:36 AM by Liar Loan »

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Offline Liar Loan

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Re: Redfin will now let people buy a home without a Real Estate Agent.....
« Reply #6 on: December 06, 2019, 10:52:47 AM »
For an example of a brokerage refusing to get with the times, look at Tarbell Realtors.  They were once a powerhouse in Orange County with giant full page ads in the OC Register.  The problem?  Once the newspaper industry started to contract due to the shift to digital, they never adjusted their strategy.  Tarbell just kept taking out full page ads in the print newspaper until their sales volume tanked to the point of having to close their doors.

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Re: Redfin will now let people buy a home without a Real Estate Agent.....
« Reply #7 on: December 06, 2019, 11:01:57 AM »
Zillow and Amazon will or has changed the market. Believe me (Add Redin)

I believe the traditional establishment do not want this to happen.
« Last Edit: December 06, 2019, 12:51:42 PM by eyephone »

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Offline Soylent Green Is People

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Re: Redfin will now let people buy a home without a Real Estate Agent.....
« Reply #8 on: December 06, 2019, 11:57:14 AM »
Disruption, like car crashes where no bodily injury happens, can be fun to watch. Anyone remember when Redfin released actual MLS sales data on each and every realtor out there? Many of the "Top Producer/Area Experts" Real Estate royalty were found to be mere schlubs wearing no clothes at all. Good times.... gooood times....

I'm very much against "dual agency" transactions as they rarely can be handled ethically or efficiently. This Redfin tool does begin to feel like a dual agency transaction since there isn't an advocate for the buyer or seller that is strictly centered on each parties significant legal or timing issues. A good Realtor can get a dual agency sale completed to the satisfaction of both parties - the .00000001 percent of Realtors out there IMHO (I've worked recently with both Agents capable of dual agency success BTW making this an experience based comment....)

This transaction method is the way of the future and no amount of crabbing about it will change this inevitable shift in market conditions. Generation Screen In Face demands it.  This transition can be done well or just as easily result in a disaster. Let's hope some of the rules to come will be of a consumer protective nature rather than industry/agent shielding.

My .02c

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Offline Mety

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Re: Redfin will now let people buy a home without a Real Estate Agent.....
« Reply #9 on: December 06, 2019, 12:36:29 PM »
So if this keeps on going for Redfin and becomes their main strategy for the customers, are they giving up on making money on the buying side?

Offline Liar Loan

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Re: Redfin will now let people buy a home without a Real Estate Agent.....
« Reply #10 on: December 06, 2019, 01:12:30 PM »
So if this keeps on going for Redfin and becomes their main strategy for the customers, are they giving up on making money on the buying side?

Currently this deal only extends to properties that they hold the listing on, or that they own.  That's a very small percentage of the market, so most buyers will still be generating them a fee when the listing is held by a different brokerage.

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