{"id":1894,"date":"2007-09-05T17:43:15","date_gmt":"2007-09-06T00:43:15","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=1894"},"modified":"2007-09-05T18:01:52","modified_gmt":"2007-09-06T01:01:52","slug":"why-do-traditional-realtors-despise-discounters-like-redfincom","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1894\/why-do-traditional-realtors-despise-discounters-like-redfincom\/","title":{"rendered":"Why do traditional Realtors despise discounters like Redfin.com?"},"content":{"rendered":"

This is me, guest-posting at Blown Mortgage while Morgan Brown is on vacation<\/a>:<\/p>\n

So why is a limited-service listing unlikely to succeed? If you\u2019re in a high-demand market like Seattle, it just might. But in most of America, right now, a home must be marketed perfectly from the first day or it will sell slowly and at a deep discount \u2014 if at all.<\/p>\n

The one difference between a true FSBO and a limited-service listing is the searchable record in the MLS database. The home will be offered by-owner in all other respects: Priced wrong, prepared wrong and inaccessible to buyers and their agents. This is not a necessary consequence, but it is very, very common. In the case of our newly-listed competition, the home is offered at $200,000 over its market value. Presumably because of the recent re-financing craze, it is encumbered at about $75,000 over market. This home will not be a threat to our listing.<\/p>\n

But it wouldn\u2019t be a threat even if it were priced right. There are too many weapons that a professional home marketer will bring into battle for an amateur, no matter how dedicated, to compete. A limited-service listing comes with none of the professionals\u2019 arsenal. So much the worse, it shouts out a warning to skilled buyer\u2019s agents to stay away.<\/p>\n

Why would that be so? Because even if it\u2019s competitively priced, even if the buyers love<\/i> that particular home, it is being marketed by an amateur who will, in all innocence, make egregious errors again and again. Worse, the seller will have no one to turn to for advice, exposing the buyer\u2019s agent to double the legal liability in the transaction, potentially even creating what a judge might regard as an undisclosed dual agency.<\/p>\n

The same situation obtains in reverse with discount buyer\u2019s agents like Redfin.com or Buyside.com. Their vaunted cost savings come not from their technology, nor even from picking the low-hanging fruit of well-prepared buyers. The savings they pass on to the buyer come from pushing the costs of buyer representation onto the listing agent.<\/p><\/blockquote>\n

I wrote this essay a couple of months ago, when Redfin.com Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This is me, guest-posting at Blown Mortgage while Morgan Brown is on vacation: So why is a limited-service listing unlikely to succeed? If you\u2019re in a high-demand market like Seattle, it just might. But in most of America, right now, a home must be marketed perfectly from the first day or it will sell slowly […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,6,5,27],"tags":[],"class_list":{"0":"post-1894","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-disintermediation","7":"category-marketing","8":"category-real-estate","9":"category-redfincom","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":281,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/281\/if-bill-clinton-ran-redfincom\/","url_meta":{"origin":1894,"position":0},"title":"If Bill Clinton ran Redfin.com . . .","author":"Greg Swann","date":"September 3, 2006","format":false,"excerpt":"Of the two \"innovative\" cowbird brokerages discussed in this morning's New York Times, the stronger of the two is BuySideInc.com. They're rebating even more of the buyer's agent's commission than is Redfin.com, but their actual profit center is in originating the loan -- a well-understood, fast, cheap, office-job function. Even\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2553,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2553\/big-news-ignore-all-that-fine-print-tear-through-all-that-red-tape-redfincom-supports-safari-at-last\/","url_meta":{"origin":1894,"position":1},"title":"Big News: Ignore all that fine print, tear through all that red tape — Redfin.com supports Safari at last!","author":"Greg Swann","date":"January 30, 2008","format":false,"excerpt":"Oh, wait, that's not the big news from Redfin.com. In fact, I reported the really big news last night:Redfin will either make money or it won\u2019t, and, in the long run, if it endures into a long run, it will become more like traditional real estate even as traditional real\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":236,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/236\/how-to-exterminate-a-cowbird-a-comedy-in-three-acts\/","url_meta":{"origin":1894,"position":2},"title":"How to exterminate a cowbird — a comedy in three acts . . .","author":"Greg Swann","date":"August 23, 2006","format":false,"excerpt":"Act I -- Why Realtors hate discount listings... People think ordinary on-the-ground Realtors hate discount listings because of the discount. That's may be true of many real estate brokers, but real-life Realtors have two much better reasons to hate discount listings. First, the Buyer's Agent will have to do all\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":290,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/290\/dissecting-glenn-kelman-of-redfincom\/","url_meta":{"origin":1894,"position":3},"title":"Dissecting Glenn Kelman of Redfin.com . . .","author":"Greg Swann","date":"September 5, 2006","format":false,"excerpt":"From comments at Rain City Guide. I didn't address this weblog entry from Redfin.com CEO and broker Glenn Kelman because I wasn't sure how to strike a balance. But today, Dustin Luther offered this:For those that haven't seen Glenn's comments on his blog, I highly recommend heading over to this\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":285,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/285\/remarks-from-redfincom-broker-glenn-kelman\/","url_meta":{"origin":1894,"position":4},"title":"Remarks from Redfin.com Broker Glenn Kelman . . .","author":"Greg Swann","date":"September 4, 2006","format":false,"excerpt":"Glenn Kelman, chief executive and broker of Redfin.com, posted a comment to one of my entries about that company. I replied to him there, but I'm posting the exchange here, as well, frankly because I consider it Big News. Here is Mr. Kelman's remark:Thanks for this thoughtful comment Greg. Many\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2701,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2701\/redfincom-builds-new-listing-oversight-tools-for-sellers\/","url_meta":{"origin":1894,"position":5},"title":"Redfin.com builds new listing oversight tools for sellers","author":"Greg Swann","date":"March 4, 2008","format":false,"excerpt":"Here's the news, snipped to the quick:Online real estate broker Redfin Corporation today released Redfin Listing Metrics, a dashboard for Redfin's listing customers to analyze neighborhood inventory trends and recent sales, and to compare their listing's online traffic to that of other listings in the neighborhood.That sounds slick, doesn't it?\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=1894"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/1894\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=1894"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=1894"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=1894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}