Impact studies of redfin (and the like)
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Anonymous
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I'm curious if anyone knows of any (or is willing to share) the impact that redfin and similar set-ups have had on realtors. Has it driven realtors out of the trade? I'm sure it varies by the strength of the market (i.e. a lot easier to see w/out a realtor in a seller's market than a buyers), but has anyone seen any studies or willing to report the talk/trends within their agency?
And more importantly, for most of us, any effects on pricing? (both initial and final sales) |
Anonymous
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Redfin has been in its home market of Seattle for a decade and still has less than 3% market share.
http://www.seattletimes.com/business/real-estate/redfins-bid-to-overthrow-traditional-brokers-still-a-house-to-house-battle/ |
Anonymous
I don't think the OP is asking about market share, but whether Redfin & co. have driven down average commission percentages. Clearly, if low-cost options started gaining a share some others would lower their prices. |
Anonymous
| One can only hope commissions go down. 3% on homes priced like they are here is grossly overpaid. that's especially true in areas where houses sell in under a week. Realtors in those situations are likely being paid $1,000+ an hour. |
Anonymous
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I think Redfin's woeful lack of market share is directly relevant. They're not really having an impact. And, actually, their business model is proving unsustainable to them.
I suspect average commissions have fallen, but that's probably correlated more closely with rising home prices than with the business model of discount brokers.s |
Anonymous
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I have noticed an increase of Redfin listed homes in the past 6 months. You really cannot look at the percentage of the market as a sole indicator of sales.
Honda, Toyota and Hyundai when through similar sales patterns and look at where they are now. Change will be slow, but who really pays 6 percent anymore? |
Anonymous
| I know lots of sellers who pay 7% !!!! Thats what an agent i work with charges and weve closed over 100 deals in the past two years at that rate. |
Anonymous
Wow, people really are stupid. Jesus. |
Anonymous
My anecdotes trump your data! |
Anonymous
It's a lot easier when you just accept that change is happening now. |
Steve
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These are some good reads. They don't specifically answer your question, but you'll find out why it's hard for companies like RedFin to gain market share:
http://scholarship.sha.cornell.edu/cgi/viewcontent.cgi?article=1077&context=crer http://faculty.chicagobooth.edu/chang-tai.hsieh/research/jpe%20real%20estate.pdf |