Real estate site Redfin files for IPO

#1

Post by realdlee » Fri, Jul 07, 2017, 4:35 PM UTC

Real estate site Redfin files for IPO
techcrunch.com

Re: Real estate site Redfin files for IPO

#2

Post by debacle » Fri, Jul 07, 2017, 5:12 PM UTC

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.

Re: Real estate site Redfin files for IPO

#3

Post by notadoc » Fri, Jul 07, 2017, 5:13 PM UTC

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?

Re: Real estate site Redfin files for IPO

#4

Post by fananta » Fri, Jul 07, 2017, 5:17 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 agree with your point, but realtors are protected but layers of legislation. In many areas the realtor groups almost operate like the taxi cartels.

Re: Real estate site Redfin files for IPO

#5

Post by ransom1538 » Fri, Jul 07, 2017, 5:18 PM UTC

Redfin with its smaller cut of RE transactions on the seller side combined with the ability to circumvent MLS with it's own listing system could be the begining of the end for agents.

Re: Real estate site Redfin files for IPO

#6

Post by [deleted] » Fri, Jul 07, 2017, 5:19 PM UTC

fananta wrote: post #4

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 agree with your point, but realtors are protected but layers of legislation. In many areas the realtor groups almost operate like the taxi cartels.

[deleted]

Re: Real estate site Redfin files for IPO

#7

Post by rhodysurf » Fri, Jul 07, 2017, 5:19 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 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.

Re: Real estate site Redfin files for IPO

#8

Post by maguirre » Fri, Jul 07, 2017, 5:19 PM UTC

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?

Re: Real estate site Redfin files for IPO

#9

Post by ssewell » Fri, Jul 07, 2017, 5:20 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 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.

Re: Real estate site Redfin files for IPO

#10

Post by wyc » 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?

Buying a house is among the largest purchases of many peoples' lives. It could be worth the $5,000-$50,000 (~6% of value in U.S.) for the piece of mind. People are used to using realtors. I don't think enough economists and business people give culture enough credit for its impact on businesses and finances. It's common enough that if the buyer tries to make direct contact with the seller, all parties are startled and the deal falls through entirely.

Next, there are established network effects in the real estate industry. Companies that have tried to offer a flat-fee house brokerage service at scale have been met by massive resistance from existing realtors, who then dissuade their many buyers and sellers from even considering those services. I think this has been a brick wall for a long time.