Comments on: Redfin The Transparent Real Estate Brokerage http://thexbroker.com/2007/10/02/redfin-the-transparent-real-estate-brokerage/ Wed, 19 Oct 2011 15:38:01 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Marlow http://thexbroker.com/2007/10/02/redfin-the-transparent-real-estate-brokerage/comment-page-1/#comment-1513 Marlow Thu, 04 Oct 2007 06:47:42 +0000 http://xbroker.realestatetomato.net/2007/10/02/redfin-the-transparent-real-estate-brokerage/#comment-1513 Redfin's overhead is not "lower by design, so they can charge less." They can charge less because they got millions of dollars of VC that they're spending, to make up the difference between actual costs and the real cost. They've got 100's of agents, execs and engineers on staff and they're paying them with VC, as there's just not enough in earned commissions to cover payroll. Redfin’s overhead is not “lower by design, so they can charge less.” They can charge less because they got millions of dollars of VC that they’re spending, to make up the difference between actual costs and the real cost. They’ve got 100’s of agents, execs and engineers on staff and they’re paying them with VC, as there’s just not enough in earned commissions to cover payroll.

]]> By: The XBroker http://thexbroker.com/2007/10/02/redfin-the-transparent-real-estate-brokerage/comment-page-1/#comment-1518 The XBroker Wed, 03 Oct 2007 21:19:52 +0000 http://xbroker.realestatetomato.net/2007/10/02/redfin-the-transparent-real-estate-brokerage/#comment-1518 Taxes off? I thought I was being conservative at 33% on earned income? Agreed re: your point that a human being needs to be involved at some (many) levels of the transaction, and doubt we'll see the day where houses are bought and sold exclusively online..maybe thats Web 5.0. In either case, Redfin represents an evolution in real estate marketing and services...they're not the end all be all, rather an innovative alternative for those who prefer their methods...which increases everyday as new consumers enter the marketplace, consumers who grew up on the net. Gena points out, Redfins overhead is lower by design, so they can charge less. As for cars...I bought my Infinity off of eBay...$3k below wholesale and $7k below the same year make and model on the lot of a local dealership. Taxes off? I thought I was being conservative at 33% on earned income?

Agreed re: your point that a human being needs to be involved at some (many) levels of the transaction, and doubt we’ll see the day where houses are bought and sold exclusively online..maybe thats Web 5.0.

In either case, Redfin represents an evolution in real estate marketing and services…they’re not the end all be all, rather an innovative alternative for those who prefer their methods…which increases everyday as new consumers enter the marketplace, consumers who grew up on the net.

Gena points out, Redfins overhead is lower by design, so they can charge less.

As for cars…I bought my Infinity off of eBay…$3k below wholesale and $7k below the same year make and model on the lot of a local dealership.

]]> By: Agent Scoreboard http://thexbroker.com/2007/10/02/redfin-the-transparent-real-estate-brokerage/comment-page-1/#comment-1515 Agent Scoreboard Wed, 03 Oct 2007 05:29:16 +0000 http://xbroker.realestatetomato.net/2007/10/02/redfin-the-transparent-real-estate-brokerage/#comment-1515 X, Your taxes are off, and I've never spent $2,500 to sell a $300k home, maybe $1,000, but if your only doing 8 deals a year then you probably don't have a buyer pipeline anyway. Agents doing 8 deals a year should be drummed out of the business. However, the point you miss about the consumer is that they invested nothing in the transaction until it was neatly laid at their feet. Consumer risk is offset by the cash agents invest in the potential sale, however long that transaction may close. Carrying inventory has a cost. Glenn hopes that people will buy and sell houses online, I admire that I even hope for it. However, I don't see it happening, the risk, the size of the transaction, the "home" won't be something you can just buy over the internet. They tried really hard to sell cars online, and gave up, $100 of millions invested and poof... nothing, dealers still rule because people want to bond with that car, that payment, the vroom-vroom... One day... but not before the fin is in a little square can with a twist key... X,

Your taxes are off, and I’ve never spent $2,500 to sell a $300k home, maybe $1,000, but if your only doing 8 deals a year then you probably don’t have a buyer pipeline anyway.

Agents doing 8 deals a year should be drummed out of the business.

However, the point you miss about the consumer is that they invested nothing in the transaction until it was neatly laid at their feet. Consumer risk is offset by the cash agents invest in the potential sale, however long that transaction may close. Carrying inventory has a cost.

Glenn hopes that people will buy and sell houses online, I admire that I even hope for it. However, I don’t see it happening, the risk, the size of the transaction, the “home” won’t be something you can just buy over the internet.

They tried really hard to sell cars online, and gave up, $100 of millions invested and poof… nothing, dealers still rule because people want to bond with that car, that payment, the vroom-vroom…

One day… but not before the fin is in a little square can with a twist key…

]]> By: Gena Riede http://thexbroker.com/2007/10/02/redfin-the-transparent-real-estate-brokerage/comment-page-1/#comment-1514 Gena Riede Wed, 03 Oct 2007 05:25:37 +0000 http://xbroker.realestatetomato.net/2007/10/02/redfin-the-transparent-real-estate-brokerage/#comment-1514 Given the cost of running a business as a Realtor and the gas which I don't think is in your calculations...since Redfin simply does everything on the computer...they are miles ahead of the game with regard to their expenses. Not sure they have any besides Internet costs. Very provocative post. Given the cost of running a business as a Realtor and the gas which I don’t think is in your calculations…since Redfin simply does everything on the computer…they are miles ahead of the game with regard to their expenses. Not sure they have any besides Internet costs.

Very provocative post.

]]> By: The XBroker http://thexbroker.com/2007/10/02/redfin-the-transparent-real-estate-brokerage/comment-page-1/#comment-1517 The XBroker Wed, 03 Oct 2007 02:43:44 +0000 http://xbroker.realestatetomato.net/2007/10/02/redfin-the-transparent-real-estate-brokerage/#comment-1517 I considered this for a moment Kevin, but chose to digress. Given your suggestion, I'll amend to show the pre and post tax expense deduction differnce in the AM... Watching the 20th anniversary edition of Wall Street as I type...and wondering where Michael Douglas gets the Ponce de Leon Juice from. I considered this for a moment Kevin, but chose to digress. Given your suggestion, I’ll amend to show the pre and post tax expense deduction differnce in the AM…
Watching the 20th anniversary edition of Wall Street as I type…and wondering where Michael Douglas gets the Ponce de Leon Juice from.

]]> By: Kevin http://thexbroker.com/2007/10/02/redfin-the-transparent-real-estate-brokerage/comment-page-1/#comment-1516 Kevin Wed, 03 Oct 2007 02:13:58 +0000 http://xbroker.realestatetomato.net/2007/10/02/redfin-the-transparent-real-estate-brokerage/#comment-1516 Depressing numbers, but mostly accurate. Only one correction I would suggest: If your tax accountant is halfway decent, you'll get to deduct your fees, advertising, MLS dues, etc. <i>pre-tax</i> instead of post-tax. That'll help the bottom line -- not enough to go above the poverty line, to be sure, but every little bit helps. Depressing numbers, but mostly accurate. Only one correction I would suggest: If your tax accountant is halfway decent, you’ll get to deduct your fees, advertising, MLS dues, etc. pre-tax instead of post-tax. That’ll help the bottom line — not enough to go above the poverty line, to be sure, but every little bit helps.

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