REMAX and Redfin Really Million Dollar Year Day 3. It was announced today in the press that RE/MAX, a franchise system, is collaborating with Redfin, the discount internet based brokerage system. Is this not another sign of the changing real estate industry? There are forces at work here disrupting the business. The internet provides the consumer with information about houses, neighborhoods and valuations. These were and still are a province for the professional agent. While the consumer is armed with a plethora of information trying to find an answer that is fully informed by someone who is not a daily professional in the field is a daunting task. The value to the consumer with the internet based
brokerage like Redfin is that you pay 1% less commission on average. Commissions are always negotiated and never set, that is against the law, and negotiated amounts are often in the 0% to 6% across the country for residential real estate.
RE/MAX, a franchise, charges it’s broker/owners a fee for the exclusive in an area. The owner/broker charges the affiliated agent a fee for their bricks and mortar locations along with some other fees. Redfin, since it is a virtual company charges no ongoing fees for the agent. They also pay agents for their piecework of showing properties to buyers and sellers. The cash in hand at the moment of the work is attractive to a discount agent as they learn the business, or just don’t want to work hard in the business. Redfin is built on gathering leads and using them for their agents, now they are going to share they with RE/MAX agents, what’s up with that? How will this change affect you if you work for either of these companies? Are you seeing the changes.
In the end, no matter what there will always be people who are ok with working with discount people for the savings. There will always be people who want professional service and will pay a professional fee to that person. YourStories Realty Group joined Castles Unlimited this week because I see the changes and I want to work with people who need professional services by an experience person who listens for a living. REMAX and Redfin Really Million Dollar Year Day 3