Redfin broke a big taboo this week by "co-mingling" FSBO’s and foreclosures with MLS listings.
Under every circumstance it’s the right thing to do. It delivers exactly what the customer wants: All the listings, in one place.
But there’s something more here. Look beyond the mashup. How do you think the Redfin brand is being strengthened by offering every housing opportunity, politics be damned?
I’ll suggest the following:
- It makes the company and its agents appear distinctly more expert.
- It makes the company seem more consumer focused and more trustworthy than other brands.
- It makes the company appear more sensitive to the needs of the community by providing representation to people with alternative needs.
I don’t believe the first question most consumers ask when they hit a site is if it has all the listings. I believe they don’t know to ask. Trulia’s fabulous traffic proves that. If anything, the consumer has been slipped that false notion mickey about coverage for a long time.
But that’s certainly about to end. And it’s about time.
So what’s next? Well, it wouldn’t hurt to follow suit. The data feeds are out there. Along with a herd of new company sunrising across real estate’s horizon with new ideas, tools, apps and possibilities. And it certainly wouldn’t hurt to leap frog either. One up them as they say.
Or not. You certainly have options. You can use this opportunity to vilify Redfin. Or allow your local MLS to ban you from co-mingling.
I think that continuing to moor your boat to old taboos is a bad idea — especially when your competitors have set sail into the future.
- Davison
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While I think that adding foreclosures to their MLS listings makes perfect sense, I'm not as confident that adding FSBOs is a very good idea.
Let's look at what you find positive here:
It makes the company and its agents appear distinctly more expert.
How will they track when a FSBO property just hits the market, or is in escrow, and should be reflected as "pending"? If they can't do this in a timely and accurate manner, the quality of their data will suffer…making them appear less expert perhaps.
It makes the company seem more consumer focused and more trustworthy than other brands.
Is Macy's a less trusted brand because they don't advise you that many of their items are available for sale on eBay? If an investor visits http://www.schwab.com, will they find data on unregistered funds or on companies looking around for investors without providing necessary and legally required information? Probably not, because there's no benefit to http://www.schwab.com for being the 'procuring cause' in these kinds of transactions. The liability is way too high.
It makes the company appear more sensitive to the needs of the community by providing representation to people with alternative needs.
Not really. Redfin isn't providing any different type of representation to people who may choose to pursue FSBOs than they always have. Nothing changes here. Except the information is "available"…which will end up rearing its ugly head in lawsuits when the "by owner" seller doesn't appropriately disclose, etc.
I'm not sure that any company need feel compelled to provide "all" or even "the most" information if they can't vouch for the quality or veracity of the information they are providing.
Consumers only want access to "all" of the information if the quality of that information is beyond reproach. As long as FSBO data is questionable at best, you haven't necessarily done your clients a service.
What we might be forgetting here Jon with respect to FSBO listings is that while it's not perfect data, neither is MLS data. A while back I posted on Realtor.com listings and another on on online listing book experiences and their presentation of less than stellar listing results.
What I am talking about here is the appearances created by Redfin to the consumer. I am talking about the statement it makes in contrast to the statements traditional real estate makes as a result of doing nothing imaginative, simple or progressive.
I strongly believe this move bodes well for the brand on several accounts and strongly believe their attention to FSBO's is not only a sensitive outreach but will have a profound affect on generating many of them as potential new customers for their agents.
Remember 85% of FSBO's end up using agents. Can anyone say lead generation?
I'm really torn on this one Marc. I agree with foreclosures (though I don't know where you'd find foreclosure data feeds) being added to search results but putting FSBOs in the search… I side with Jon on this one.
I really don't think the information on FSBOs can be validated and the status of these homes is frequently unknown. I could point you to many FSBOs on ForSaleByOwner.com that are either listed with a REALTOR now or have transferred title that still appear active on the site.
I'd also be curious to know how many FSBOs are aware of their liability in relation to any information they put out there about their home.
I don't know, FSBOs just aren't there for me yet. I really like the idea of foreclosures though and would add it to my own site if I could find a solid data feed.
Okay, I rescind my last comment. I read in Joel Bursalem's blog about this new Redfin update:
"Redfin says it’s going to support the addition of these listings through a flat fee. Which means, I presume, as a buyer, if you want to put an offer on a FSBO through Redfin, they’ll help you write it up and just charge you X."
Very well played Redfin, very well played. What amuses me most about Redfin is how everyone claims they have no right being in real estate because Kelman's never been "in the trenches" and doesn't "get" real estate. Yet they're changing the game. Maybe you don't need to be in real estate to be a game changer.
I wish Kelman well, I really like this new feature.
Amen.
Might I recommend 3 books especially to those who want to take the other side in the debate.
Corporate Creativity by Alan G. Robinson & Sam Stern
Einstein Picasso by Arthur I.Miller
Organizing Genius by Warren Bennis
Don't forget that Zillow also mixes FSBO listings (sort of) with it MLS lsitings.
The Make me move postings are entry level FSBO's testing the waters.
Fsbillowif you willow.
Also if you want to have a complete listings data base add in new home builders and foreclosures.
I wouldn't say it's a game changer. Is it something different? Sure.
Is it sorta like Britney Spears or the Paris Hilton type hype…where their actual deeds and contributions warrant planet wide media coverage? Yeah, it sorta is.
Including FSBO listings is interesting, but is there anyway to know what percentage of FSBO listings in the Redfin market area are included on their site.
Including them is a start, but if it isn't at least 50%+ of the FSBO listings in their market areas aren't included what's the big deal…they have a wee bit more inventory for a prospective buyer to ponder. Yawn.
Here's what I think happens in our little corner of the world (Houston). Yes, 75% to 85% of the home buyers START their search on the internet, dreaming, researching, etc. When the time comes to plunk down money and pick a property, what happens? I don't what the percentage is, but the majority of home buyers select a real estate agent to work with. Together they comb the available inventory in the areas/neighborhoods/communities/streets they want to live in. This final search would include new up to the moment MLS searches, the discovery and introduction of possible pocket listings or soon to come on the market listings (information that a well networked agent might know about on an informal level). Also, when driving through the various neighborhoods to view properties, FSBO signs will be visible and if a buyer wants to see them, they will…no big deal.
My conclusion, Redfin is an interesting and progressive company, their every move, however large of tiny generates fantastic amounts of buzz for their company. The lesson I take – "Figure out how to generate big buzz." Controversy is one smart way.
Thanks for your thoughts, they're informative and thought provoking.
It always amazes me that Realtors want to be perceived as market experts on the one hand, yet want nothing to do with significant parts of the market on the other. Nothing says that you have to do a FSBO or foreclosure transaction – but if you want to claim to be a market expert you should be willing to acknowledge them, be knowledgeable about them, and not be afraid to talk consumers interested in exploring other options.
Keep in mind consumers don't care about your issues or concerns. They just want a good deal, and these get-rich-quick, buy your next house at 50% off FSBO and foreclosure sites have huge traction that Realtors are leaving unanswered. Buyers want bargains, and they perceive these other opportunities as bargains, and they don't believe Realtors can help them. It is time for Realtors to stand up and say we can be your source for everything real estate, and we are ready to help.
Joshua – we are ready to provide foreclosure feeds to any Realtor in CA that wants one, and we have the foreclosure "MLS" to back it up and allow Realtors to pull comps and respond to inquiries.
Century 21 M&M in Modesto, CA actually launched full foreclosure search using our tool well before this Redfin announcement, and they got more than 200 inquiries their first month. The buyers are ready for this, are you?
Sean, always a great contribution. I agree wholeheartedly that REALTORs need to become the definitive source for real estate and the mom 'n pop style of selling just won't cut it anymore.
I would love to take advantage of your service but unfortunately I am in New York. The "other" Orange County. If you do expand to New York though let me know and I'll be the first to sign the dotted line.
Hi, it's David G from Zillow,
Great post, Marc and Sean makes an excellent point; why would a buyer work with an agent who ignores FSBO's? If FSBO inventory is as "polluted" as Jon claims then surely dealing with that bad data is another opportunity for an agent to add value.
At Zillow we have one of the largest (if not the largest) inventory of FSBO listings in the country. We plan to distribute FSBO and Make Me Move listings (for free) via an upcoming API. If you're interested in early access to this new data feed, please contact me [davidg AT zillow DOTCOM]
Louis –
Since Zillow doesn't access listings via a an MLS membership it's not subject to MLS policies that Estately is.
I think it is important to change as the market changes. If you are going to keep your site on top, it is important to give your users information that they want and need. Most importantly, it is important to make sure the information is current, up to date, and valid.
What's the big deal? I've got a 50 point marketing plan and one point is: Place in MLS. Do you all really belive that putting a sign in front of your house and an ad in Zillow or Refin with a 100 pictures is ALL it takes to sell nowadays? Wake up out their in Internet land. It's the wild, wild west out there with all you bargain shoppers having to overbid on REO's by $50,000 and muttering, "But I thought it was a buyer's market!?" But have at it! For one of you 2.0's there are 100's who actually realize they are WAY over their heads.
I so agree than consumers are drawn to the appearance of "all the info, nothing hidden, all in one place"; especially as popular opinion of Realtors sometimes strays into the regard-with-suspicion attitude. And really, since as you point out, the data are available elsewhere, Redfin's making a smart move conglomerating.
I'm not a Realtor; I speak from the informed consumer position. With a service like Redfin, I can be much more informed, and that's a huge incentive to work for and with them.
Great blog and also excellent comments from your readers.