Would anyone used Redfin for purchase?

NEW -> Contingent Buyer Assistance Program
Johnny Fever_IHB

Johnny Fever_IHB

New member
I use Redfin to search the neighborhoods and noticed that you can place an offer on home thru them and they 'give back' 2/3rds commission? What is the catch?
 
I actually called them once to use an agent to view a house. They got back to me fairly quickly but the agent was not able to "fit" me into her schedule for at least a week.

They also only allow you a couple free tours (4-6 houses per tour), after that they charge you to go on more tours.



This does not fit my type of home shopping so its not my first choice agent.
 
I guess it sort of you get what your pay for, in this case, what the seller pays for. Seriously, since you're not paying commissions directly, I'd rather work with someone who'd wants to work for the commissions, find the most thorough home inspector, bargain with the other realtor and take care of all the odds and ends. I do love the web service redfin provides, but sounds like the single realtor they've assigned to the OC is spread out a little too thin. I don't blame them as giving back 2/3rds of the commissions is a huge chunk.
 
[quote author="skek" date=1210314541]A lot of listing agents will make a stink about paying the 3% broker co-op if your initial contact with them doesn't come through a selling agent. (Builders are explicit about this rule.) That means if you contact the listing agent directly, you may be stuck representing yourself in the transaction, agreeing to joint representation by the listing agent, or paying your agent out of your own pocket. In this market, I don't think it would be a deal breaker if you threatened to walk, but it may cause some headaches.</blockquote>


Bah, all you need to do is say you have already have a realtor and qualify with the listing agent that they are in no way procuring cause for you... No offense to IR2, but I have contacted listing agents to show me places when I didn't want to wait. Never have had one balk at taking the time to tour.
 
[quote author="halfnote19" date=1210309623]I actually called them once to use an agent to view a house. They got back to me fairly quickly but the agent was not able to "fit" me into her schedule for at least a week.

They also only allow you a couple free tours (4-6 houses per tour), after that they charge you to go on more tours.



This does not fit my type of home shopping so its not my first choice agent.</blockquote>






Huh? They CHARGE you for seeing additional properties??? I have never heard of this before... that's crazy! I guess they expect you to do all the preliminary leg work on their site, and just preview the properties you are really serious about. Doesn't sound like something I would be interested in either...
 
Neither my father or I have used a buyer's agent in the last twenty years. We get our properties for less, because the listing agent has always knocked down his/her commission in order to close the deal.
 
awgee,

Yeah, but Im sure since you are well versed in these things, it may not matter as much. But how about for us first-timers?...Do we really need a buyer agent? If not, why shouldnt use redfin? Again, Im new to this and am likely looking past the obvious here.



Oh, we did do some recent home tours w/ a realtor and he was less than impressive. I knew 100 times more about the places we looked at . Really made me ? his value in this situation...
 
[quote author="awgee" date=1210329146]Neither my father or I have used a buyer's agent in the last twenty years. We get our properties for less, because the listing agent has always knocked down his/her commission in order to close the deal.</blockquote>


I would highly recommend against this for any new buyers. I think its definitely important to have someone on your side esp when it isn't coming out of your pocket. Sure you are giving up some of the commission you can get back by only working with the listing agent but if your buyer agent is worth anything, they should be able to bargain enough on your behalf that you end up saving more. At least thats the type of agents my families have worked with.



There was a thread way back discussing the value of having an agent or not. Will try to find later.
 
Regarding redfin, I think it would be ideal if you are buying a new home from a builder. You negotiate with the builder and they do all the paperwork and you get back a nice check.



If you aren't buying new and its your first time, a traditional good buyers agent would be better. They can spend all their gas driving you around and showing you properties. Also, a lot of agents are giving back a cut from their checks these days. I have heard .5-1% a lot.
 
We made the mistake of using the listing agent on our first house as our agent. One day into escrow we started regretting it and by the time it closed we said NEVER do that again. She cost us a lot of money and did not have our interest at heart. This time around we had an agent represent us as the buyers and it was like night and day with the way she looked after our interest. She earned her 1.5% comm. I wouldn't want to be represented by someone who ends up making $20/hr represent us in a transaction as significant as a purchase. I also think that many first time buyers really need an agent that is going to help them understand the process, guide them, reassure them and hold their hand. Of course, this is assuming that the agent truly does have their best interest at heart. I don't think the redfin agents are compensated enough to do this properly.



Here's an example. My hubby's best friend and wife just bought their first condo. It was back in mid march when rates were going all the over the place. The day they had their contract and could lock, rates shot up and they would need to pay points to get the rate they needed. Their agent was going to give them some of her comm to help, but she also called the lender and got them to agree to unlock the rate and relock at it the lower rate that came up. They were so happy with what she did for them that they refused to take any money from her.



Our agent has also stepped up and taken on expenses that we were insisting the seller or the seller's agent take care of. She tried her best to get them to take responsibility, but when they wouldn't she paid for them herself. We offered to reimburse her and she refused to take our money. Every step of the way she was making sure that we were protected.
 
Wasn't there a 60 minutes piece on redfin and the pluses/minuses about 6-10 months ago? I vaguely remember that....
 
[quote author="k.o." date=1210379961]Wasn't there a 60 minutes piece on redfin and the pluses/minuses about 6-10 months ago? I vaguely remember that....</blockquote>


I apologize, answered my own question:



<a href="http://www.cbsnews.com/sections/i_video/main500251.shtml?id=2796105n">http://www.cbsnews.com/sections/i_video/main500251.shtml?id=2796105n</a>
 
From the other side of the curtain...



Before I start, I have to admit, Redfin has, without question, the most informative website with, and IMO the best and easiest access. I'd love to see my brokerage catch up, but I'm not holding my breath.



With that said, in regards to the question of looking for who to use for a buyer's agent:



The goal is to get <strong>(a) the best property (b) with your interests and a$$ covered (c) at the lowest total cost </strong>.



To that end,



<em>You should begin by assessing your own strengths</em>.



1. <strong>Finding It</strong> - If you've plumbed down to this post, you're tech-savvy enough to find your own place on the net if it is already listed or is a distress property with an NOD or NOT on it. (You may still find value in checking with a broker who specializes in an area, who knows about other properties not yet on the market but are heavily considering selling. It is a lousy feeling to close on a home and have a better option open up at a lower price a week later!) With this as a strength, you are probably not going to miss out on places as they come on the market, especially with slow sales. By inference, <strong>you don't need a buyer's agent to do that for you.</strong>



2. <strong>CYA </strong>- The threat of litigation is 1000x more frequent than its actual use towards resolution. The boilerplate CA Residential Purchase Agreement is pretty protective for both sides as a document. It takes a great deal of negligence to screw it up, so you should find good coverage when using almost any reputable broker with at least a little experience. You DO want to make sure that the broker is taking the time to get exactly what you want done, and not just looking for a quick close and paycheck. Using a buyer's agent doesn't assure that, but it is better odds than double-agency where the broker has, at best, only 50% of skin on your side. Again, you don't <strong><u>need</u></strong> a buyer's agent to do that for you, but <strong>I would favor it when focusing on this aspect of the representation.</strong>



3. <strong>Pricing </strong>- Lastly, and IMO most importantly, are you a good negotiator? I would bet that awgee and his father are skilled in this and have a good amount of experience to know what to do to get their best deal. But this is not the case for everyone. If you are working with the listing broker directly, his/her hands are severely tied as they can't expose your weak points or the seller's (This is an ethical obligation, and beyond that it is just bad business). You will essentially be on your own to press a seller for concessions once an initial agreement is reached, and it depends on each individual to know when and for how much. Is the benefit going to be more or less than the commission concession? That's for you to decide (and perhaps might be my next data mining experiment to see if I can show an empirical difference). This one's a wash - <strong>you may or may not need an agent to negotiate for you, depending on your expertise.</strong>



My free advice is worth every penny you've paid for it, so take it as such.



<strong>***Additional Disclaimer: If you are planning on buying any one of MY listings in the future, disregard the above post and ALWAYS work with the listing broker. %-P</strong>
 
<blockquote>2. CYA - The threat of litigation is 1000x more frequent than its actual use towards resolution. The boilerplate CA Residential Purchase Agreement is pretty protective for both sides as a document. It takes a great deal of negligence to screw it up, so you should find good coverage when using almost any reputable broker with at least a little experience.</blockquote>
I would use a real estate lawyer. They obviously have much more experience in real estate law than a realtor. It is required in Massachusetts, and I was surprised to find out that they are not required in California. The fee could be as little as $500 (well worth it, IMO).
 
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