Comments on: 60 Minutes Redfin.com Story – Is it a fairytale or a narrative? http://www.spencerbarron.com/2007/05/60-minutes-redfincom-story-is-it-a-fairytale-or-a-narrative/ Rants, Raves & Real Estate Tue, 23 Mar 2010 04:46:42 +0000 hourly 1 By: Spencer Barron http://www.spencerbarron.com/2007/05/60-minutes-redfincom-story-is-it-a-fairytale-or-a-narrative/comment-page-1/#comment-227 Spencer Barron Thu, 20 Sep 2007 23:59:41 +0000 http://www.spencerbarron.com/archives/82#comment-227 Dave, Thanks for your comment. I don't think you understand my point. My point is that an agent earns their commission based of the value they deliver. If an agent doesn't deliver any value, then they didn't "earn" their commission. Redfin will gladly show you a home and give you some of your money back when you buy it, but that in itself doesn't mean the buyer got a good deal. Does it? From my experience, homes that have limited service agents sell for less. Of course, that's difficult to prove because it could just be the demographic that the service appeals to. I'll check into the statistic for that and post it when I get it figured. It's really not that much of a stretch is it. Just like the average home price of a FSBO is about $30,000 less than a home that gets listed on the MLS, at least according to the National Association of Realtors Profile of Buyer's and Seller's 2005. It just makes sense that when you bring increased exposure to a property, you get more traffic, sell faster and usually for more. It also makes sense that the more value in the form of time and experience your agent brings to the table, the more likely you will net more. I know that from experience. I take advantage of the naivety of other agents every day. Inexperienced agents aren't helping their clients and it's debatable whether they have added value to their client's position. Selling homes isn't easy in this market. Maybe before or where you live it is but for most people they just don't have the experience or the ability to stop viewing their house as their home, and start viewing it as an asset to be bought or sold for the best value within the constraints of time and possibilty. Just having it listed in the MLS doesn't sell a home. There's a lot more involved. Notice though I said full service in the article, not full commission. I am an agent that most people would consider a discount agent but unlike the Redfins and Help-U-Sell's of the world, I don't discount my service. Dave, Thanks for your comment.
I don’t think you understand my point. My point is that an agent earns their commission based of the value they deliver. If an agent doesn’t deliver any value, then they didn’t “earn” their commission. Redfin will gladly show you a home and give you some of your money back when you buy it, but that in itself doesn’t mean the buyer got a good deal. Does it?
From my experience, homes that have limited service agents sell for less. Of course, that’s difficult to prove because it could just be the demographic that the service appeals to. I’ll check into the statistic for that and post it when I get it figured. It’s really not that much of a stretch is it. Just like the average home price of a FSBO is about $30,000 less than a home that gets listed on the MLS, at least according to the National Association of Realtors Profile of Buyer’s and Seller’s 2005.
It just makes sense that when you bring increased exposure to a property, you get more traffic, sell faster and usually for more.
It also makes sense that the more value in the form of time and experience your agent brings to the table, the more likely you will net more. I know that from experience. I take advantage of the naivety of other agents every day. Inexperienced agents aren’t helping their clients and it’s debatable whether they have added value to their client’s position.
Selling homes isn’t easy in this market. Maybe before or where you live it is but for most people they just don’t have the experience or the ability to stop viewing their house as their home, and start viewing it as an asset to be bought or sold for the best value within the constraints of time and possibilty.
Just having it listed in the MLS doesn’t sell a home. There’s a lot more involved. Notice though I said full service in the article, not full commission. I am an agent that most people would consider a discount agent but unlike the Redfins and Help-U-Sell’s of the world, I don’t discount my service.

]]> By: Dave C. http://www.spencerbarron.com/2007/05/60-minutes-redfincom-story-is-it-a-fairytale-or-a-narrative/comment-page-1/#comment-226 Dave C. Thu, 20 Sep 2007 22:22:34 +0000 http://www.spencerbarron.com/archives/82#comment-226 As a recent home owner, I'm going to be up front and say that I don't agree with your stance, but you're obviously entitled to your opinion. We stand on opposite sides because we both have different agendas. However, I really take issue with point #5. You're implying that a home will sell more depending on how involved of an agent a seller hires. I hear this often, but I'm guessing it's a myth perpetuated by the industry and the agents themselves. Where's the proof in that statement? If you can show us statistics to back it up, then I'll the argument a little more credit, but I'm guessing the amount of "value" you place on being a full service agent doesn't have as much influence as you imply. As a recent home owner, I’m going to be up front and say that I don’t agree with your stance, but you’re obviously entitled to your opinion. We stand on opposite sides because we both have different agendas.

However, I really take issue with point #5. You’re implying that a home will sell more depending on how involved of an agent a seller hires. I hear this often, but I’m guessing it’s a myth perpetuated by the industry and the agents themselves. Where’s the proof in that statement? If you can show us statistics to back it up, then I’ll the argument a little more credit, but I’m guessing the amount of “value” you place on being a full service agent doesn’t have as much influence as you imply.

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