Comments on: Interview with Glenn Kelman of Redfin http://raincityguide.com/2007/01/07/interview-with-glenn-kelman-of-redfin/ Seattle's Leading Resource for Real Estate Information Mon, 15 Mar 2010 22:10:16 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Holy Guacamole! Move.com Squares Off with Redfin at Inman | Redfin Corporate Blog http://raincityguide.com/2007/01/07/interview-with-glenn-kelman-of-redfin/#comment-328485 Holy Guacamole! Move.com Squares Off with Redfin at Inman | Redfin Corporate Blog Wed, 12 Nov 2008 07:01:05 +0000 http://raincityguide.com/2007/01/07/interview-with-glenn-kelman-of-redfin/#comment-328485 [...] of course will be wondering only who won? Well I can’t say, for several reasons: 1. I’m not sure who, which probably means I [...] [...] of course will be wondering only who won? Well I can’t say, for several reasons: 1. I’m not sure who, which probably means I [...]

]]> By: Interview with Marlow Harris of the 360 Digest | Rain City Guide | A Seattle Real Estate Blog... http://raincityguide.com/2007/01/07/interview-with-glenn-kelman-of-redfin/#comment-76565 Interview with Marlow Harris of the 360 Digest | Rain City Guide | A Seattle Real Estate Blog... Thu, 25 Jan 2007 04:53:16 +0000 http://raincityguide.com/2007/01/07/interview-with-glenn-kelman-of-redfin/#comment-76565 [...] Glenn Kelman of the Redfin Blog [...] [...] Glenn Kelman of the Redfin Blog [...]

]]> By: Interview with Ardell DellaLoggia of the Searching Seattle Blog | Rain City Guide | A Seattle Real Estate Blog... http://raincityguide.com/2007/01/07/interview-with-glenn-kelman-of-redfin/#comment-63296 Interview with Ardell DellaLoggia of the Searching Seattle Blog | Rain City Guide | A Seattle Real Estate Blog... Sun, 14 Jan 2007 18:53:15 +0000 http://raincityguide.com/2007/01/07/interview-with-glenn-kelman-of-redfin/#comment-63296 [...] Glenn Kelman of the Redfin Blog [...] [...] Glenn Kelman of the Redfin Blog [...]

]]> By: Redfin vs. Establishment | Rain City Guide | A Seattle Real Estate Blog... http://raincityguide.com/2007/01/07/interview-with-glenn-kelman-of-redfin/#comment-61416 Redfin vs. Establishment | Rain City Guide | A Seattle Real Estate Blog... Wed, 10 Jan 2007 21:22:21 +0000 http://raincityguide.com/2007/01/07/interview-with-glenn-kelman-of-redfin/#comment-61416 [...] With Redfin I think they create red faces in the market, mostly from competitors, not their very own clients. With all the debating taking place (see last few comments) about variations of service levels and discussion about saving $20,000 in commissions but losing $100,000 in price for an agent’s (implying Redfin or similar models) lack of negotiation skill —an argument I disagree with—maybe the only way for consumers to feel like they are being well served is to set their own benchmarks for the people they entrust to help sell and buy homes. Realtors have exceptional value, but as an industry have allowed foolish internal cultural policy to dim the light. Instead of setting benchmarks for delivery of value that consumers get, industry insiders have to spend copious amounts of time trying to tell each other why a model will fail. If you want meaningful debate, invite consumers on a panel telling why one model worked for them vs. another. APB to Brad Inman…. try that. [...] [...] With Redfin I think they create red faces in the market, mostly from competitors, not their very own clients. With all the debating taking place (see last few comments) about variations of service levels and discussion about saving $20,000 in commissions but losing $100,000 in price for an agent’s (implying Redfin or similar models) lack of negotiation skill —an argument I disagree with—maybe the only way for consumers to feel like they are being well served is to set their own benchmarks for the people they entrust to help sell and buy homes. Realtors have exceptional value, but as an industry have allowed foolish internal cultural policy to dim the light. Instead of setting benchmarks for delivery of value that consumers get, industry insiders have to spend copious amounts of time trying to tell each other why a model will fail. If you want meaningful debate, invite consumers on a panel telling why one model worked for them vs. another. APB to Brad Inman…. try that. [...]

]]> By: Greg Swann http://raincityguide.com/2007/01/07/interview-with-glenn-kelman-of-redfin/#comment-61294 Greg Swann Wed, 10 Jan 2007 17:10:11 +0000 http://raincityguide.com/2007/01/07/interview-with-glenn-kelman-of-redfin/#comment-61294 > At least Redfin can say with certainty that you will walk away with some tangible benefit of using them (i.e. $20000 in your examply). Indeed. And no matter how bad your hair looks, at GreatClips they'll always give you a lollipop. ;) Expending more effort does not guarantee a better result, but it's hard to argue that expending less effort will routinely yield better results. And, of course, there is a lot more to buying or selling a home than price. Redfin expends less effort at every one of those tasks. If we apply the test of Dalton Plausibility to every one of those tasks, I think the man's position is hard to dismiss. > At least Redfin can say with certainty that you will walk away with some tangible benefit of using them (i.e. $20000 in your examply).

Indeed. And no matter how bad your hair looks, at GreatClips they’ll always give you a lollipop. ;)

Expending more effort does not guarantee a better result, but it’s hard to argue that expending less effort will routinely yield better results. And, of course, there is a lot more to buying or selling a home than price. Redfin expends less effort at every one of those tasks. If we apply the test of Dalton Plausibility to every one of those tasks, I think the man’s position is hard to dismiss.

]]> By: Russ Cofano http://raincityguide.com/2007/01/07/interview-with-glenn-kelman-of-redfin/#comment-61275 Russ Cofano Wed, 10 Jan 2007 16:47:16 +0000 http://raincityguide.com/2007/01/07/interview-with-glenn-kelman-of-redfin/#comment-61275 Greg You are correct that neither Glenn nor any "full service" real estate professional can say with certainty that they could have negotiated a lower price. Not sure I buy your "more plausible" theory as it applies to the masses of current agents but that's for another day. Here is a different twist. At least Redfin can say with certainty that you will walk away with some tangible benefit of using them (i.e. $20000 in your examply). The full service agent can only speculate. Russ Greg

You are correct that neither Glenn nor any “full service” real estate professional can say with certainty that they could have negotiated a lower price. Not sure I buy your “more plausible” theory as it applies to the masses of current agents but that’s for another day.

Here is a different twist. At least Redfin can say with certainty that you will walk away with some tangible benefit of using them (i.e. $20000 in your examply). The full service agent can only speculate.

Russ

]]> By: Greg Swann http://raincityguide.com/2007/01/07/interview-with-glenn-kelman-of-redfin/#comment-61240 Greg Swann Wed, 10 Jan 2007 15:41:48 +0000 http://raincityguide.com/2007/01/07/interview-with-glenn-kelman-of-redfin/#comment-61240 >> “…since we know you’re doing less work than another agent would do, it is more likely that Redfin is _costing_ its clients money — both buyers and sellers.” > Can you elaborate. Not sure I understand. Redfin writes a contract for you to buy a house you found for $1,000,000. Did you save $20,000 in commissions, or did you lose $100,000 in price that a full-service Realtor might have negotiated for you? Kelman cannot tell you the answer -- nor can Dalton -- but Dalton's position is much more plausible. FWIW, Kelman's position on the question gets much worse in lower-priced markets. How much work can Redfin afford to do on a $100,000 house? Presumably, this is why they only enter pricey markets. >> “…since we know you’re doing less work than another agent would do, it is more likely that Redfin is _costing_ its clients money — both buyers and sellers.”

> Can you elaborate. Not sure I understand.

Redfin writes a contract for you to buy a house you found for $1,000,000. Did you save $20,000 in commissions, or did you lose $100,000 in price that a full-service Realtor might have negotiated for you?

Kelman cannot tell you the answer — nor can Dalton — but Dalton’s position is much more plausible.

FWIW, Kelman’s position on the question gets much worse in lower-priced markets. How much work can Redfin afford to do on a $100,000 house? Presumably, this is why they only enter pricey markets.

]]> By: Interview with Michael Simonsen of Altos Research | Rain City Guide | A Seattle Real Estate Blog... http://raincityguide.com/2007/01/07/interview-with-glenn-kelman-of-redfin/#comment-61108 Interview with Michael Simonsen of Altos Research | Rain City Guide | A Seattle Real Estate Blog... Wed, 10 Jan 2007 08:08:30 +0000 http://raincityguide.com/2007/01/07/interview-with-glenn-kelman-of-redfin/#comment-61108 [...] Glenn Kelman of the Redfin Blog [...] [...] Glenn Kelman of the Redfin Blog [...]

]]> By: Russ Cofano http://raincityguide.com/2007/01/07/interview-with-glenn-kelman-of-redfin/#comment-61098 Russ Cofano Wed, 10 Jan 2007 07:15:25 +0000 http://raincityguide.com/2007/01/07/interview-with-glenn-kelman-of-redfin/#comment-61098 Gregg "...since we know you’re doing less work than another agent would do, it is more likely that Redfin is _costing_ its clients money — both buyers and sellers." Can you elaborate. Not sure I understand. Russ Gregg

“…since we know you’re doing less work than another agent would do, it is more likely that Redfin is _costing_ its clients money — both buyers and sellers.”

Can you elaborate. Not sure I understand.

Russ

]]> By: Greg Swann http://raincityguide.com/2007/01/07/interview-with-glenn-kelman-of-redfin/#comment-61092 Greg Swann Wed, 10 Jan 2007 06:34:45 +0000 http://raincityguide.com/2007/01/07/interview-with-glenn-kelman-of-redfin/#comment-61092 > The general takeaway I’m getting is that people are pretty impressed that Glenn held his own. If Dalton were better able to control himself, he would have crushed Kelman. The argument was devastating: You say you're saving them money, but, since we know you're doing less work than another agent would do, it is more likely that Redfin is _costing_ its clients money -- both buyers and sellers. Kelman has -- and had -- no response to this. We charge less _and_ we do _far_ more leaves Dalton in the dust. Lazy-for-less is a non-starter. > The general takeaway I’m getting is that people are pretty impressed that Glenn held his own.

If Dalton were better able to control himself, he would have crushed Kelman. The argument was devastating: You say you’re saving them money, but, since we know you’re doing less work than another agent would do, it is more likely that Redfin is _costing_ its clients money — both buyers and sellers. Kelman has — and had — no response to this. We charge less _and_ we do _far_ more leaves Dalton in the dust. Lazy-for-less is a non-starter.

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