Looking Out From the Garage

Frankly Fun! Part II

So I started the story yesterday...  And I want to pay it off.

Let me start by saying that the blogger that shook them up is Frank Llosa.  He is one of the most forward thinking and technically astute brokers in the country... he has even built his own MLS that should be a model for all of the big boys.

He apparently came across the post on Redfin and read my comment... and found his way to my post about the same thing.  It had also occurred to him that their "science" was pretty incomplete.  What's more is that he was disappointed that they never acknowledged the comments or post.  Frank is actually a fan of Redfin... but he likes a good debate.

Since he has his own MLS, and better data crunching ability than I... he ran the numbers.  And he blogged about it.  His comments are also visible at yesterday's links to Redfin's blog.  But even better... they emailed him.  Visit the link to see what he had to say...

But here is the quick version (please note... the long version is WAY better):

Redfin didn't include seller paid expenses in their calculations.  In many markets, this can be substantial.  So, while they are making hay over how their rebates save money for the buyers and how they are crack negotiators, the problem is that they weren't including all of the data about the negotiations.

If you read the referenced blogs from today and yesterday, you will see plenty of examples of how this is a HUGE hole in their data.

Enjoy.

 

from LaneBailey.com

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7 comments • Lane Bailey - REALTOR & Car Guy • January 08 2009 10:26AM

Frankly Fun! Part I

A few months ago (last March) I made a comment on Redfin's corporate blog about what I saw as seriously incomplete "science" in their findings about how much groovier they are than everyone else.

Here is the comment:

Did you take into account seller paid costs, such as seller paid closing costs. I know that I average 2.75% on behalf of my buyers. For a $400,000 house, that equates $11,000 that you say doesn’t matter… only the price matters.

I would say that the total deal is what matters. Of course, then we need to get into post-inspection negotiations and repairs… those don’t go to seller paids, and without having all of the contracts, I know that you wouldn’t be able to quantify that for any transactions that aren’t yours… and even for your own transactions it might be onerous.

They never actually answered that comment.  In fact, a few weeks later they re-stated the numbers because of someone else's comment.

I said:

Still wondering about seller paids… I average a about 3% in seller paids on my buyer transactions. (closing costs, etc.)

I didn't have the juice then that I have now... and I only have a little now.  They didn't answer that comment either.

I wrote a blog about it.  Redfin HAD to have seen it... they have Google alerts.  They didn't pop in to answer my questions...

There is a reason that I am writing about this now.  And it has to do with another blogger... one that has juice.  And a message when I logged onto my IM yesterday when he told me I was his new bestest friend.  I think Redfin is a little unhappy that the rest of us aren't seeing then as scientists... but as marketers.  More tomorrow.

 

from LaneBailey.com

Find YOUR Dream HomeWhat's YOUR Home Worth?How's the Market?

Unless otherwise noted, all content of this blog is the property of Lane Bailey, ©2012 Lane Bailey. 

I'd love to hear from you...

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2 comments • Lane Bailey - REALTOR & Car Guy • January 08 2009 12:25AM