A reader just left this comment:
Hi there â€” I read your blog quite regularly and find it very interesting – thanks for your information and your perspective.
This business about Redfin and the TN area Realtors finding ways to block them out concerns me. I think that this is already on its way to happening here in Boston. Redfin has only been here a few months, and from where I sit, itâ€™s not going so well. Iâ€™ve been hearing that clients and potential clients of Redfin are having a really hard time getting local agents to understand the Redfin concept.
Even agents who have never heard of Redfin are having problems with them. Itâ€™s not the company name and reputation that is the issue, itâ€™s the business model.
These agents are so ingrained in the classic ways of real estate, that they canâ€™t wrap their heads around what Redfin clients tell them. It seems like the biggest problems are happening when Redfin clients are trying to gain access to properties by going through the listing agent. If there is no open house, Redfin clients are encouraged to call up the listing broker and schedule a showing through them. These listing agents get all riled up when they hear that these home buyers ARE working with a buyerâ€™s agent, but that they want the listing agent to show the house w/o the buyerâ€™s agent present. Itâ€™s as if a â€œdoes not compute, does not computeâ€? flashing red sign goes off in the listing agentâ€™s head! To them this is just ALL WRONG.
These agents are used to things working a certain way – if THEY show someone a house, then THEY are entitled to the commission for doing that. Plain and simple. They are doing the â€œworkâ€?, so the money goes in their pocket. They donâ€™t care that itâ€™s actually Redfin that will do all the work from that point onâ€¦ and that it will still result in them getting their selling commission.
When I first heard about Redfin, I thought the potential danger would be that the Redfin name would be smeared all over town and that is how word of mouth would get out and Redfin would be blacklisted. But it actually seems like the process is what is being shut down, not the name!
I hope what happened in TN does not happen here, but if it does, I certainly wonâ€™t be surprised.
What do you think?