I just overheard a news report that Redfin is coming to San Diego, and I am tapping my pen in wonder.
I imagined one of our San Diego real estate listings and I imagined receiving a call from a stranger asking to see the property. In the natural course of conversation, I would ask if the caller was working with an agent. If the caller responded that they were working with Redfin, under normal circumstances I would ask the caller to have the representing real estate agent give me a call and would make arrangements for the agent to show the property and would also try to ascertain the qualifications of the buyer (we dont want to expose our sellers to unqualified traffic).
Redfin, from what I can gather, is not that kind of company. Tonights television report says buyers can say they are working with Redfin, call the listing agent to see the property, and then pay a 1/3 commission referral fee to Redfin and keep the rest to themselves. As a listing agent, I dont care one way or the other who splits the buyers commission. What I do care about is the security and privacy of our sellers and the safety of our agents. And I have a number of questions:
1.Who has prequalified the buyers to see if they are anything more than casual lookers or worse?
2.If the Redfin agent doesnt wish to be present at the showing of the property, I have to wonder why? Who will advise the buyer about real or potential flaws, comparative properties or other issues that may influence property-buying decisions? I would never direct a buyer to another property, when I am obligated to represent my own sellers best interests. Who is knowledgeably representing the buyer?
3.What liablility does Redfin accept if someone says they are a client of Redfin, and turns out to be something much worse?
There are many new real estate models on the horizon, and Redfin is just one of the new rebaters. I dont have a problem with the monetary side, but I do have an issue with a buyers agent who plays the role of a gray ghost and is physically absent from the transaction. Could the reason be that it isnt œeconomically feasible?
If so, the true cost paid by the unwitting real estate buyer, seller or agent could be far more than any œrebate earned.
I am still tapping my pen.
You should explain to your Sellers that you will do your best to show only qualified buyers, who are represented and accompanied by their agents and they should also do the same, not opening their door to anyone claiming to have an agent, but not accompanied by one.
Good luck!
Marlow: You make excellent points that we should all take to heart. Allowing a stranger (who claims to have a real estate agent)into one’s home might have regrettable results.
Thanks for stopping by!