CREW SRS Real Estate/homebuyer crew - Some questions about RedFin and some questions about buying new construction... And maybe some questions about both...

Perfect Speed

Software and Cars
OT Supporter
Apr 8, 2006
27,534
PHL>SEA>CLT
(For context, I have a real estate agent, but haven't signed a contract with them, but I do like the guy - Also - we plan on buying sometime between late Q1 and the end of Q2 of 2021)

So I know a little about redfin, mainly that their agents are no commission, but that's about it - So my first question is what are the pros/cons of buying a house listed with Redfin?

Second is, I keep tabs on local houses that fit the criteria to what I want in the area - and I use the Redfin app and noticed that it shows new construction. A couple of the new construction houses (that fit our budget/criteria) have options available...

I'm curious how the options typically work?
Also curious what I'd need to be aware of / How the buying process differs if I bought a redfin house that's new construction
 

kwhitelaw

OT Supporter
Sep 1, 2004
41,669
virginia
Redfin is licensed as a broker and typically has their own agents that you'd be retaining. In some markets, there isn't enough incentive for them to keep an office so they sub out to a different broker.

new construction or not, doesn't matter for Redfin. They should give their kickback just the same. Redfin agents are paid a salary so they get paid regardless if you get to settlement or not (I believe they have bonuses based off reviews also). Some might feel that that business model might mean they won't work as hard, I can't speak to it.I can say that my interactions with Redfin agents on the other side of the tablehas been laughable (in my clients benefit so I've dealt with the shortcomings and my clients have come out ahead in the end)

why not let your agent you like continue the course? He/she can show you new construction just the same (and some might say, be more attentive to your needs along the way as Redfin agents may be spread thin). If it completely boils down to the Redfin rebate, and you haven't signed an agency agreement with your current agent, ask him if he can offer a similar rebate. I've lost clients that have jumped ship to Redfin (in the early stage of working together) without asking me if I could match a kickback, in some cases I could exceed it and still make it profitable enough for me to run my business
 
Last edited:
  • Like
Reactions: lawnboy

kwhitelaw

OT Supporter
Sep 1, 2004
41,669
virginia
I realized you weren't really drilling down on their rebate so apologies for making assumptions.

to sum it up, use Redfin if you want a rebate but possibly would be willing to deal with a lower level of interaction/response
 

saabguy

Saab-free since 2013. Mortgage guru
OT Supporter
Aug 11, 2003
26,040
Loserville. Population: 1
Just deal with your agent you already have/like. They can show you new construction, existing homes, etc.

don’t just cruise into a new development and start looking at model homes. The sales agent will try to cut your agent out. Sign a buyer agency agreement and follow his lead.
 

Creator

The Creator Has a Master Plan
Sep 27, 2001
45,988
Here
A first time buyer in this market you should go with a good agent. Mine has been insanely helpful.
 

kwhitelaw

OT Supporter
Sep 1, 2004
41,669
virginia
That’s bad business. I’m honestly surprised.
Ehh shit flies off the shelf around here, wouldn't be surprised if we get back to the days of buyer agents parking out front and stopping random possible buyers on their way in and straight up offering half commission back to just out their name down
A
 
  • Like
Reactions: lawnboy

Sp33dealer

Bully Troll Crew
Aug 3, 2005
54,451
DFW
Just deal with your agent you already have/like. They can show you new construction, existing homes, etc.

don’t just cruise into a new development and start looking at model homes. The sales agent will try to cut your agent out. Sign a buyer agency agreement and follow his lead.
This
 

saabguy

Saab-free since 2013. Mortgage guru
OT Supporter
Aug 11, 2003
26,040
Loserville. Population: 1
Is that common where you are? We bend over backwards to pay agents.
Builders are cutthroat. I have a couple buying a new Lennar home. They try and keep it all in house. They were pressuring them to use their shitty in house lender and buyers straight up told them “we’re not switching so stop asking.” They even have their title company in on it. My processor asked for title docs and the title agent told them “they have a different lender.” I asked buyers and they said absolutely not. Just more shadiness.
 
  • Like
Reactions: kwhitelaw

1200mk

Still same OG
Aug 9, 2001
17,388
Just do your own homework and work with an agent (redfin or not) that is familiar with your area. Theyll have a better understanding of the market and have contacts that can help with negotiations, etc.
 

Remy Bressant

Boots in the cab SMDFTB
OT Supporter
Jul 24, 2015
39,946
SoCal
Is that common where you are? We bend over backwards to pay agents.
That was SOP when I was workin in the builder world. Their in house agents would almost force anyone walking in to sign an agreement that no outside agent would get a commission if they purchased.
 

Remy Bressant

Boots in the cab SMDFTB
OT Supporter
Jul 24, 2015
39,946
SoCal
Damn. They’re not worried about the agents blackballing them?
09-17 you couldn’t black ball a new home project if you wanted to. Pretty sure it’s the same way out here now. Everyone but the boomeriest of boomers sees the new home developments on the apps.
 
  • Like
Reactions: Go Pro
TS
TS
Perfect Speed

Perfect Speed

Software and Cars
OT Supporter
Apr 8, 2006
27,534
PHL>SEA>CLT
Something is either listed or not within the MLS. Redfin is just a platform that displays listed homes in the MLS but refers you to their agents in lieu of those who are paying them to send leads their way.

They're just a rebate broker with lower quality agents. What makes me say "lower quality"? The agents intentionally chose a model where they incur no costs in advertising, marketing, or prospecting but with the trade off of being paid less.

There's no difference between Zillow, Redfin, etc., it's just that Redfin will send you directly to their agents so you can get a commission rebate or refund. Zillow, Realtor.com, etc. will send you to whomever is paying for that lead.

Maybe I'm misunderstanding, but I wasn't aware that Redfin was an actual builder. Is that what you're saying.

My suggestion:

If you're selling, I want the most hardcore person there is. That's never a Redfin or discount broker.

If I'm buying, the saving is nice if I get someone who's competent and working around the clock, but that's typically not the case. When factored into the cost of the house, especially when using financing, it might make sense to go with a pro.

Also, keep in mind that all commission is negotiable. If you like your dude, tell him he can take 3% on the purchase, but he's listing at 1.5%. Get that in writing.
Redfin is licensed as a broker and typically has their own agents that you'd be retaining. In some markets, there isn't enough incentive for them to keep an office so they sub out to a different broker.

new construction or not, doesn't matter for Redfin. They should give their kickback just the same. Redfin agents are paid a salary so they get paid regardless if you get to settlement or not (I believe they have bonuses based off reviews also). Some might feel that that business model might mean they won't work as hard, I can't speak to it.I can say that my interactions with Redfin agents on the other side of the tablehas been laughable (in my clients benefit so I've dealt with the shortcomings and my clients have come out ahead in the end)

why not let your agent you like continue the course? He/she can show you new construction just the same (and some might say, be more attentive to your needs along the way as Redfin agents may be spread thin). If it completely boils down to the Redfin rebate, and you haven't signed an agency agreement with your current agent, ask him if he can offer a similar rebate. I've lost clients that have jumped ship to Redfin (in the early stage of working together) without asking me if I could match a kickback, in some cases I could exceed it and still make it profitable enough for me to run my business


Lots of useful info here...

To answer the main question - I wasn't aware if Redfin listings were like "you can only deal with Redfin not used your own agent" type of thing. Looks like I can still use my agent, which is great.
That pretty much covers that stuff...


I wanted to know about options with new construction... Like, are the options negotiable? Can I ask for stuff that's not in the listing/floor plan/docs etc ?
Should I start a new thread for that?
 
TS
TS
Perfect Speed

Perfect Speed

Software and Cars
OT Supporter
Apr 8, 2006
27,534
PHL>SEA>CLT
Bottom line: everything is negotiable. Everything.

Good to know the money is negotiable...

Wondering if something like heated floors in the master bath is also negotiable, there's a few other items that I'm not sure of the feasibility of.
Hose bibs, some heated flooring stuff, adding a closet, etc
 
TS
TS
Perfect Speed

Perfect Speed

Software and Cars
OT Supporter
Apr 8, 2006
27,534
PHL>SEA>CLT
Also, worth noting:

this is kinda like attorneys. If you get drunk and run over a Sunday school, do you want the guy advertising his savings or the guy advertising his results?
Oh agreed, I basically made this thread cuz I liked my agent but was worried there could be weirdness with Redfin - Sounds like it'll be a non-issue.
 

FryingPan

Certified Thread Killer
May 19, 2000
51,129
Raleigh, NC
Good to know the money is negotiable...

Wondering if something like heated floors in the master bath is also negotiable, there's a few other items that I'm not sure of the feasibility of.
Hose bibs, some heated flooring stuff, adding a closet, etc

It really depends on the builder. I wouldn't suspect many builders are hopping on the "give options away" train these days though. Construction and material costs are through the roof and availability sucks right now.
 

P3R3

Well-Known Member
Apr 8, 2011
3,725
Seattle
I used Redfin for my place, our realtor was great, and we were able to easily schedule showings in the app which was key for me.
 

Users who are viewing this thread

About Us

  • Please do not post anything that violates any Local, State, Federal or International Laws. Your privacy is protected. You have the right to be forgotten. Site funded by advertising, link monetization and member support.
OT v15.8.1 Copyright © 2000-2022 Offtopic.com
Served by fu.offtopic.com

Online statistics

Members online
389
Guests online
59
Total visitors
448

Forum statistics

Threads
369,596
Messages
16,898,041
Members
86,875
Latest member
Theodor