There has been some chatter on the Internet and here on Active Rain about Redfin, and I suppose that any non-traditional firm will attract controversy, especially from the rank and file orthodoxy. We have seen non-traditional firms come and go in the New York market; Foxtons went out of business in 2007, and Zip Realty currently is making a big push.
I have often been a skeptic of non-traditional brokerage models. I haven’t been confident that they are sustainable once the investment capital runs out, and in the case of several, inlcuding Iggy’s House, I have been right. The main reason for my skepticism is the fact that people, not gimmick creative business models, determine the success of an enterprise. Simply put, top agents will work where they can make the most money. A top producer will not join a team with lower per-transaction revenue, and you need top producers for market share an oh, um, profit. Think 80/20 rule, and remember that the unorthodox brokers were the flavors of the month in the hot market but went under when things slowed down.
I have reason to believe that Redfin will be different. I’ll give you my rationale:
- They have figured out a way to recruit high producers.
- They screen their associates thoroughly.
You can search the MLS like an agent at http://jphilip.listingbook.com.
J. Philip Faranda ranks among New York’s premier short sale REALTORS specializing in short sales in Westchester, Rockland, Putnam & Dutchess Counties. www.NYShortSaleTeam.com. Read Phil’s short sale blog at http://NewYorkShortSaleBlog.wordpress.com.
J. Philip Serves Briarcliff Manor, Ossining, Croton on Hudson, Pleasantville, Sleepy Hollow, White Plains, Yonkers, Peekskill, Cortlandt, Tarrytown, Yorktown, Montrose, Hawthorne, Thornwood, Valhalla, Hartsdale & all of Westchester County, New York.