Real estate site Redfin files for IPO • Hacker News Board

Re: Real estate site Redfin files for IPO

#11

Post by jbob2000 » Fri, Jul 07, 2017, 5:21 PM UTC

notadoc wrote: post #3

I'm still waiting for someone to completely eliminate the realtor and charge a reasonable flat fee ($1000?) to buy/sell a house and handle all the related details. Why do we need realtors at this point? Everyone finds houses themselves online nowadays. Why does anyone need to pay a whopper commission to some middle-man?

Have you ever sold a home? Potential buyers will drive you nuts with all the stupid questions they'll ask. A good realtor has the communication skills to move you along to a sale much faster.

Re: Real estate site Redfin files for IPO

#12

Post by bkjelden » Fri, Jul 07, 2017, 5:22 PM UTC

I hope this company sees nothing but success.

I bought my house through Redfin last year, and not only did I save ~$5k in commissions compared to a conventional realtor, I also felt the process was much smoother and more pleasant than other times I've interacted with a conventional realtor.

It's simply absurd that in an era where any buyer can view photos of a house for sale online real estate agents still expect to receive 6% commission on the sale of a house.

Re: Real estate site Redfin files for IPO

#13

Post by berberous » Fri, Jul 07, 2017, 5:22 PM UTC

ssewell wrote: post #9

notadoc wrote: post #3

I'm still waiting for someone to completely eliminate the realtor and charge a reasonable flat fee ($1000?) to buy/sell a house and handle all the related details. Why do we need realtors at this point? Everyone finds houses themselves online nowadays. Why does anyone need to pay a whopper commission to some middle-man?

Isn't the main value of a realtor the ability to provide access to the home for sale, monitor the visitor, and provide insight in regards to the construction & quality of the home? I don't think most people expect the realtor to recommend random homes based on the buyers preferences, as most people use services, such as RedFin, to narrow down the homes that match their best fit.

And that's worth 3%? The issue with realtors is the exorbitant fees they still charge.

Re: Real estate site Redfin files for IPO

#14

Post by pmiller2 » Fri, Jul 07, 2017, 5:22 PM UTC

ssewell wrote: post #9

notadoc wrote: post #3

I'm still waiting for someone to completely eliminate the realtor and charge a reasonable flat fee ($1000?) to buy/sell a house and handle all the related details. Why do we need realtors at this point? Everyone finds houses themselves online nowadays. Why does anyone need to pay a whopper commission to some middle-man?

Isn't the main value of a realtor the ability to provide access to the home for sale, monitor the visitor, and provide insight in regards to the construction & quality of the home? I don't think most people expect the realtor to recommend random homes based on the buyers preferences, as most people use services, such as RedFin, to narrow down the homes that match their best fit.

Maybe so, but why is that worth a 3% commission on the sale price, on both sides of the transaction?

Re: Real estate site Redfin files for IPO

#15

Post by dpark » Fri, Jul 07, 2017, 5:22 PM UTC

maguirre wrote: post #8

debacle wrote: post #2

Having worked in the real estate industry for a time, it's ripe for disruption. Redfin is going to have a problem when it paves the way for a flat rate competitor, but right now it's doing a massive service to buyers and sellers.

seriously curious as I am about to pay 10k+ for selling my house. what are they doing that is so special?

Cutting the fees in half.

Re: Real estate site Redfin files for IPO

#16

Post by toomuchtodo » Fri, Jul 07, 2017, 5:22 PM UTC

notadoc wrote: post #3

I'm still waiting for someone to completely eliminate the realtor and charge a reasonable flat fee ($1000?) to buy/sell a house and handle all the related details. Why do we need realtors at this point? Everyone finds houses themselves online nowadays. Why does anyone need to pay a whopper commission to some middle-man?

"I'm still waiting for someone to completely eliminate the need for a software engineer and charge a reasonable flat fee to bolt together some libraries and handle all the related details.

Why do we even need software engineers at this point? Everyone can find the libraries and open source tools they need online nowadays. Why does anyone need to pay a whopper paycheck to some middle-man?"

You're paying for someone's expertise, like in most industries.

Re: Real estate site Redfin files for IPO

#17

Post by dvcc » Fri, Jul 07, 2017, 5:23 PM UTC

notadoc wrote: post #3

I'm still waiting for someone to completely eliminate the realtor and charge a reasonable flat fee ($1000?) to buy/sell a house and handle all the related details. Why do we need realtors at this point? Everyone finds houses themselves online nowadays. Why does anyone need to pay a whopper commission to some middle-man?

Isn't this basically Redfin? It might not be a flat fee, but it is a reduced fee. Also intermediaries are still needed for guidance and walkthroughs, its not like viewing homes online is all there is to it.

Re: Real estate site Redfin files for IPO

#18

Post by ransom1538 » Fri, Jul 07, 2017, 5:25 PM UTC

notadoc wrote: post #3

I'm still waiting for someone to completely eliminate the realtor and charge a reasonable flat fee ($1000?) to buy/sell a house and handle all the related details. Why do we need realtors at this point? Everyone finds houses themselves online nowadays. Why does anyone need to pay a whopper commission to some middle-man?

Mainly they are protected by the MLS listing service. You can buy a house with a flat fee now with a decent RE lawyer.

Re: Real estate site Redfin files for IPO

#19

Post by jrs235 » Fri, Jul 07, 2017, 5:25 PM UTC

notadoc wrote: post #3

I'm still waiting for someone to completely eliminate the realtor and charge a reasonable flat fee ($1000?) to buy/sell a house and handle all the related details. Why do we need realtors at this point? Everyone finds houses themselves online nowadays. Why does anyone need to pay a whopper commission to some middle-man?

In many states, real estate brokers are responsible for ensuring that laws are followed and held accountable by a state government office. This means brokers take on risk and liability. Many states require a brokers license in order to sell real property for another for a fee. Yes, brokers are trying to protect their generous income structure.

Brokers (and salespeople) are only paid on successfully selling the property. The truth is not many people want to pay someone per hour or per showing to see houses. You can certainly sell or buy a home without a broker. You are bearing the risks in that case. If you buy and sell a home on your own and the deal falls apart, if the contract was not valid or not enforceable you could owe or lose thousands of dollars. Yes, you can have a lawyer draft the contract but a lawyer can't (in many states) show the property (ADD: and a lawyer is going to charge for each and every offer you written up. You pay regardless of if the sell happens or not).

With time I see brokers fees approaching a flat fee for facilitation services only (so long as they don't represent the seller or buyer in the transaction).

Why do we still have sports agents? Can't players and teams negotiate on their own?

Re: Real estate site Redfin files for IPO

#20

Post by japhyr » Fri, Jul 07, 2017, 5:25 PM UTC

rhodysurf wrote: post #7

notadoc wrote: post #3

I'm still waiting for someone to completely eliminate the realtor and charge a reasonable flat fee ($1000?) to buy/sell a house and handle all the related details. Why do we need realtors at this point? Everyone finds houses themselves online nowadays. Why does anyone need to pay a whopper commission to some middle-man?

I used to think the same way, but then I bought my first house and my realtor was insanely helpful. The entire process is filled with random quagmires that I would have never known how to manage otherwise. Someone with more experience may be more able to go it alone obviously, but my realtor was invaluable.

I agree. I live in a small isolated town, and I thought realtors were artificially increasing the home prices (not values, but prices) in the small pool of housing available here. But their local knowledge was invaluable in both buying and selling a home.

That said, if a buyer and seller agree on a sale independently of any realtor here, we can go to a local realtor and they'll happily facilitate the sale for a flat fee of around $1000. I've done that once, and had a number of friends who also did so. Most of the realtors recognize that the bulk of their commission comes from the listing and marketing process, and the paperwork is just something they know how to do correctly. $1000 is a fair price for knowing that's all being done correctly and fairly.