I don't know much about RedFin. I just checked out the web site. It looks like you draft your own offer? Hopefully I read that wrong. Do they advise you or just send you the CMA to interpret? Do they know the area well enough to know what a comp is? Depending on the type of home you're considering, this might be easy, or it might be hard. (We agents struggle sometimes if the properties are very unique, and sometimes we have to look at them before we can say for sure - the listing does not tell all; ask any appraiser that.) Do they help you with inspections, and coordinate the entire process? Is someone at closing with you to make sure everything's right? I see that they can refer a lender, hopefully a good one - I didn't check into that at all.

I am assuming you are buying your first home? Will you be using a goverment or conventional loan? You'll need to know that to know what homes might not qualify for certain loans, and how to write up the contract. Plus, depending on the lender rules, you might not be able to accept the rebate from RedFin if the offer's not structured properly. Will you be dealing with short sales or REOs? Those are tough for the best agents, does RedFin have the experience with those? Can they tell you what questions you'll need to have the answers to in order to evaluate the chances of a Short Sale being accepted? Can they tell you what is and is not negotiable with REOs, and how do they prevent situations like the bank taking so long to actually ratify an offer that all your contingency deadlines have expired? Can they recommend a home inspector and will they be there to help advise you? Will they have contractors at their disposal if you need a second eval on a roof or HVAC before you know how to proceed? The list goes on....

Anyway, I do know that those zips are full of serious, full time, professional agents, and I'd want someone to represent my interests.

In addition to those interview quesions, why not ask them for references of the last 3 buyers they closed? You'll get an idea of how much business they've been doing lately, where and what the service was like.

Good luck.

By the way, I often work in those areas, so if you want to talk, give me a call!

Sun Jun 29 2008, 18:59

Laurie,

You have somewhat of a misunderstanding when it comes to the abilities an agent has. An agent is forbidden from steering, blockbusting or redlining by the federal fair housing act. Most agents are concerned that if they speak overly positive or negative about an area, it might be considered steering. The reality is that a good agent won’t interject their opinion on the matter but rather assist you in finding objective information about the matter. Police departments always can give crime statistics, and most communities have a publication of some sort about the local school districts.

Cameron Piper

Sun Jun 29 2008, 07:39

What I find interesting about the Redfin site is that they are active in some of the hardest hit markets in the country. These markets were overinflated in the late 90's, early 80's due to discount mortgage lenders, greedy investors, and questionable business practices. I'm not sure that discount real estate brokerages are going to do a lot to correct the situation. If you truly believe that all a realtor does is find you a house and get the key out of the iBox, then you will probably be treated as you expect by Redfin. If you, on the other hand, recognize that a realtor provides much more value in assisting you with one of the largest investments you will make in your lifetime, then you might find yourself somewhat disappointed after the deal. Good luck to you, whatever you decide.

Sun Jun 29 2008, 00:39

My understanding is that agents are bound by law not to offer negative comments about neighborhoods, schools, and so on. Don't expect anything but a neutral response to questions like "is this a good neighborhood? how is the crime rate? what's the school distict's reputation?" You know, the stuff that really matters when choosing a home.

I think a good buyer's agent is useful to handle tricky contracts, sift through the listings to find the top 10 for your needs, and get you into houses with the magic box code. You can look yourself now online, any lawyer can guide you through a contract (and you should use one, anyhow), and we we're left with the box code. I'm not sure that the box code is worth the added 3% to my buying price. I look forward to using RedFin in the future. We are relocating this month.

I'm in the midst of selling my house by owner for cash, selling to friendly neighbor currently renting another house. I interviewed several seller's agents, only one of whom didn't try to sell BS with her presentation. We'll go with her if this deal dies, mostly because I can't imagine trying to sell a house myself from 1500 miles away.

Sun Jun 29 2008, 00:20

No reason at all. Interview the agents, and if you feel comfortable, hiring them and bank the money.

Sun May 11 2008, 20:11

Hey now!

Just to defend Redfin here... Their agents are mostly from Long & Foster and have done at least 10 deals (maybe much more).

Wed Mar 5 2008, 14:23

Don't skimp. It's true what they say: You get what you pay for. Call or email me and I'll explain my services. Then you can compare and decide for yourself.

703.969.9213
TinyVarner@gmail.com

Wed Mar 5 2008, 11:25

It never ceases to amaze me at how people are looking at spending hundreds of thousands of dollars, and are looking at representation offering rebates or limited service. Could this be why we're in the middle of this subprime mess??? You should never pick an agent/company (buyer or listing) based solely on what they charge. Interview and discuss what's important to you, then make your decision. If you save $10,000 at closing, but your agent lacks the experience to interpret your contract and represent you when hiccups come along how much with that cost you?

Thu Feb 28 2008, 16:21

If you feel they will negotiate the best deal for you and protect your interests then by all means go ahead. Make sure you understand you have your financing in order and realize that a good agent will already be looking to getting you a 3% closing cost credit from the seller. Make sure that the additional $10K rebate is okay with your lender. Depending on your financing there may be a limit as to how much you can have credited on your HUD-1.

Wed Feb 27 2008, 15:14

No problem using a rebator. Heck, I used to rebate... but then I got good.

I have a blog that will show you some pros and cons for rebating.

Wed Feb 27 2008, 14:03

Whether or not you use Redfin or not, if you've already picked out the property and need an agent/broker to prepare and negotiate the contract and take you through all the steps from contract to settlement, I personally think it's fair that you pay less than what is offered as the broker co-op fee.

I have broken my services up into two parts - a consulting/hourly fee for the front end (search for and show buyers properties, do CMAs, analysis, stats, etc) and an agent/broker representation part, which is heavily discounted. This may good for someone in your situation that has already picked out which home(s) you like. If you'd like more info on my business model, let me know.

Wed Feb 27 2008, 13:52

There are 185 homes for sale in those area codes. Depending on how many homes you want to see, Redfin may not be your best choice. Like all service providers, real estate agents vary in value. You should be very careful picking one for your largest purchase.

Wed Feb 27 2008, 10:39

Picking an agent should not be simply about money. What you really want is a knowledgable agent - one who knows the area, knows the neighborhoods, knows the schools/amenities, etc. This information is often very valuable as it can result in you ending up in a home that will actually be a better fit and make you happier in the long run.
If you have an agent who isn't willing to go the extra mile for you, then by all means you might as well pocket a portion of the selling agent's commission. However, if you can find a knowledgeable, experienced and dedicated agent, it is definitely worth forgoing that bonus.

Wed Feb 27 2008, 10:04