{"id":281,"date":"2006-09-03T16:56:35","date_gmt":"2006-09-03T23:56:35","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=281"},"modified":"2007-05-13T20:14:24","modified_gmt":"2007-05-14T03:14:24","slug":"if-bill-clinton-ran-redfincom","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/281\/if-bill-clinton-ran-redfincom\/","title":{"rendered":"If Bill Clinton ran Redfin.com . . ."},"content":{"rendered":"

Of the two “innovative” cowbird brokerages discussed in this morning’s New York Times<\/i><\/a>, 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 this is not without complicating factors, especially RESPA. But in pure dollars, BuySideInc.com will make more money per buyer than Redfin.com.<\/p>\n

But if Redfin.com really wanted to isolate traditional listing agents, they would triangulate Clinton-style. Instead of giving two-thirds of the buyer’s agent’s commission to the buyer, they would give one-third each to both the buyer and the seller. That way, the seller would regard Redfin.com not just as another source of buyers but as a potential small windfall at close of escrow. The interests of buyer, seller, and Redfin.com would coincide, at least to that extent, and the listing agent would feel a very strong pressure to get his own ass on board.<\/p>\n

I still think Redfin.com is not earning its commissions, using the standards of procuring cause that would apply to any other brokerage, but a strategy like this would be much more effective, in the long run, at getting away with it than whining to the New York Times<\/i>…
\n<\/p>\n

Technorati Tags: disintermediation<\/a>, real estate<\/a>, real estate marketing<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

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 this is not without complicating […]<\/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-281","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":236,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/236\/how-to-exterminate-a-cowbird-a-comedy-in-three-acts\/","url_meta":{"origin":281,"position":0},"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":1897,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1897\/unlike-venture-capital-vampire-redfincom-iggys-house-seeks-suckers-on-wall-street\/","url_meta":{"origin":281,"position":1},"title":"Unlike venture-capital vampire Redfin.com, Iggy’s House seeks suckers on Wall Street","author":"Greg Swann","date":"September 6, 2007","format":false,"excerpt":"John Cook's Venture Blog:Despite challenges in the national real estate market, Chicago discount real estate service Iggy's House plans to try its luck with an initial public offering that could raise up to $15 million, according to a filing with the Securities and Exchange Commission. If successful, that would be\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":2917,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2917\/redfincom-wakes-up-smells-coffee-staples-galoshes-to-forehead-now-redfin-buyers-will-be-able-to-see-homes-in-an-almost-normal-way\/","url_meta":{"origin":281,"position":2},"title":"Redfin.com wakes up, smells coffee, staples galoshes to forehead: Now Redfin buyers will be able to see homes in an almost-normal way","author":"Greg Swann","date":"April 8, 2008","format":false,"excerpt":"The uncontested brilliance of the free market is that it is self-correcting. People like me have been bitching all along that Redfin.com's approach to buyer representation was misguided if not outright evil. Conceding some huge chunk of the buyer's agent's commission to the buyer was certainly consumer-friendly, but pushing the\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":1422,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1422\/60-minutes-delivers-400-hits-in-sixty-minutes\/","url_meta":{"origin":281,"position":3},"title":"60 Minutes’ Redfin.com story delivers 400 hits in 60 minutes flat . . .","author":"Greg Swann","date":"May 13, 2007","format":false,"excerpt":"Who says the old media is dead? In the hour just ended, Redfin.com's Real Estate Consumer's Bill of Rights: A wolf in sheepskin clothing had over 400 hits from organic search. Just think what might happen if the NAR made reasoned arguments instead of trying to club reality into shape\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":5446,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5446\/offering-more-service-to-buyers-for-a-bigger-slice-of-the-buyers-agents-commission-redfin-moves-closer-to-traditional-real-estate\/","url_meta":{"origin":281,"position":4},"title":"Offering more service to buyers for a bigger slice of the buyer’s agent’s commission, Redfin moves closer to traditional real estate","author":"Greg Swann","date":"November 6, 2008","format":false,"excerpt":"When I represent buyers, I see my biggest responsibility as taking the fear away. Yes, I need to find and show houses. Yes, I need to write contracts and supervise inspections. Yes, I need to husband everything through the lender and the title company. But the job of jobs is\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":285,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/285\/remarks-from-redfincom-broker-glenn-kelman\/","url_meta":{"origin":281,"position":5},"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. 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