Good information. Hope the comment within the post didn’t confuse people. I have noticed via marketing materials that some agents have put their money where their mouth is. Some indicate a specific monetary rebate if a client is not satisfied. The idea of a large company Broker following the footsteps of one of their agents in participating within that same framework appears weak. I don’t know of any Brokers that would match their agents guarantee. There may be some, but I am unaware. Nor have I seen an amended commission disbursement form sent to our office with a rebate going back to a consumer for a customer service satisfaction guarantee.

I think service guarantees are week without specific benchmarks in place. For example, back when Lynlee (spouse) was working at Phoenix Mortgage & Escrow (very early 90’s), they placed a specific dollar amount on their guarantee, no questions asked. It places tremendous pressure on the LO’s and staff to provide meaningful positive outcomes.

If large companies actually gave back a portion of the commission to unsatisfied clients I think a few things would happen. First, you would have brokers and agents quickly resolving issues—client centered vs. in-fighting between brokers. Secondly, brokers would be much more quick to let problem agents go rather than having them continue to operate in anonymity. Third,it would produce huge strides in building and mending the fragile image within the real estate community.

Offices can certainly work through difficult issues with an unhappy client who is on the surface satisfied with fixing the problem, but after the fact, still feeling that they didn’t get a good return on their investment dollar. Obviously, when you put money on the line, it changes everything. In today’s environment most agents work within an underlying theme of…if my clients are not satisfied, I’m still getting paid—unless of course the consumer elects to work with someone else prior to a sale going forward. The problem is when a P & S is signed around, the consumer may feel locked in and just bear working with the situation until closing.

Some big companies DO offer service guarantees. Our company offers both a Buyer Services Guarantee and a Sellers Services Guarantee.

For Sellers: http://www.cbbain.com/sitecontent.aspx?ATID=325065&mn=1

For Buyers: http://www.cbbain.com/sitecontent.aspx?ATID=325064&mn=1

While this is not a perfect no-questions-asked, no-strings-attached guarantee, neither is Redfin’s. With Redfin, you are asked to give up several important legal rights when using their services, incuding your right to a jury trail. They offer a seemingly “100% Guarantee” until you read the fine print from the Redfin site:

“THIS AGREEMENT PROVIDES THAT ALL DISPUTES BETWEEN YOU AND REDFIN WILL BE RESOLVED BY BINDING ARBITRATION. YOU THUS GIVE UP YOUR RIGHT TO GO TO COURT TO ASSERT OR DEFEND YOUR RIGHTS. YOU ALSO GIVE UP YOUR RIGHT TO PARTICIPATE IN OR BRING CLASS ACTIONS. YOUR RIGHTS WILL BE DETERMINED BY NEUTRAL ARBITRATORS AND NOT A JUDGE OR JURY.”

In an industry that is all about consumer disclosure, full disclosure of ALL commissions to ALL parties involved in the transaction, is clearly long overdue. Redfin has pushed that envelope. Whether they succeed or not, if that envelope remains open, they will have been a success in my eyes.

For a confident, competent agent, Redfin is just another competitor. For the opposite, Redfin is like the Wizard of Oz.

Remember, differentiate or die in this industry! This model provides inspiration to the less-than-best agents to become better agents. This model also enables companies that dare to become something more than traditional to gain a larger market share by offering both models, since both models are valid and needed.

I have polled some consumers on this over the last year. You are correct and most will choose an agent who offers advices regarding the home prior to offer. But they say, many won’t. They will not offer opinions as to what the home is worth and whether or not it is a good option given what is on the market or may come on the market.

Given the choice of paying three times the amount for someone who will only open doors and say “do you want to buy this one” and saving two thirds…they choose saving two thirds.

Many, even most, prefer having an agent that helps them make tough choices, but lacking the availability of such an agent…they would choose Redfin.

I agree as to sellers. If you are saying it is commonplace in buyer scenarios, that’s great. I do think Seattle is far and above on many things. I do think companies like Redfin make that so…more and more.