Redfin announced its arrival in Boston Thursday after a trip to the Hub (of the Universe, that is) to touch base with some of the natives. Glenn Kelman, Cynthia Pang (Redfin’s Senior Communications Manager) and I met for coffee on Tuesday during their visit.
I thoroughly enjoyed our conversation. Glenn is smart and forthright. He looks you in the eye and listens. These are qualities that will stand Redfin in good stead here.
Yankees are direct (Californians think we need therapy), independent and cheap (and, yes, proud). These consumer qualities will also stand Redfin in good stead.
We know that some agents and some of the large franchises are hostile to Redfin and its business model. Some angry agents may be tempted to behave badly. Please don’t. Refusing to show houses to Redfin buyers or take your buyers to Redfin listings hurts your clients and violates your duty to them – never mind the legal issues. And to what end?
Redfin represents change in the real estate industry. Throughout history, those who attempt to suppress change driven by popular perception have been relegated to the past. This is not a battle traditional agents can win by combative strategies. Success in the 21st century will depend upon understanding and accepting consumer drivers and creating new approaches that respond to them.
In other words, compete, don’t wage war.
This is not about what agents think is “fair”; it’s about what the consumer thinks is fair. The costs you bear, particularly if your commissions are paying the huge corporate debts of a major franchisor, are not a consumer concern. You are still asking them to pay you 5-6% of their major asset in Providence R.I. – and keep in mind that this is a much larger percentage of their actual equity in their major asset.
Redfin uses new technology to provide a choice for certain consumers. What’s wrong with this? When you go to a car wash, you may choose to pay to have your interior cleaned, or you may wish to save the money and clean it yourself. Do you worry about whether this is “fair” to the workers employed there? Would you like to be told you must let them wash your interior if you want any services at all? How about a state car wash board governed by owners of car washes passing regulations that require that for your own good, you must accept all services a car wash can provide or wash your car yourself? How about the manufacturers of turtle wax agreeing that they will provide car cleaning supplies only to licensed car washes?
Can you view this like a consumer? If you can’t, there is no hope for you.
We welcome Redfin because they represent an attempt to respond to consumers, to give consumers an option. We deplore any activities directed at depriving consumers of this choice.
So, Redfin, welcome to Boston. If you can learn to drive, you’ll probably do just fine.
ps- it’s the “T”, not the “subway”.
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