Can someone explain Redfin to me???

Question

I am analyzing deals all the time and would like to find comps when my agent is not available. Zillow is OK for a 'quick' number and I hear Redfin is 'better', but every time I go on there and enter an address, it says "Address not available"?? I see there are agents on there, is the site designed for sellers? Is it like Trulia? Not sure what this site exactly is...???

Russell Brazil · Answer

Inexperienced agents who do not know what they are doing. I was actually just on the buy side of a transaction that listed with Redfin.  Post settlement, we were able to have the wages of the seller garnished for $18,000 because the Redfin agent who helped them fill out the disclosures didnt know what they were doing, and 1 particular mistakes made that seller liable to my client for $18k.  It was not the first time Ive seen this mistake made by a Redfin listing either, just the first time I was able to take advantage of it.  Ive constantly seen lead paint disclosure forms filled out improperly. And while unlikely, that could lead to fines in tens of thousands.

Some agents simply wont show Redfin listings.  Doesnt matter what you feel about that, its simply a fact of life.  And if some agents are not showing the property, that equates to less demand, which typically leads to softer closing prices.

There is also a perception by much of the market that Redfin properties tend to be in worse condition.  I often have heard the verbiage repeated that if a seller wasnt willing to pay the proper price to sell their house, why do you think the seller spent the proper amount of money maintaining their house.  This perception leads to again less demand.

On the negotiation side, I know I can completely take advantage of a Redfin as they have never taken a class in negotiation.  Their inexperience also leads to not knowing what is customary to give away in negotiations,...whether on price or after a home inspection.  I simply tell them when X is broken, it is typical to give us Y back as a credit, and they have no barometer to judge that by.

Funny story, I ran into someone recently at a party that was so happy they used Redfin.  He got multiple offers, went $10k over asking, sold it in 3 days, saved his money on commission.  I looked up his house when I got home, and they had under priced it by $40k.  Yeah great job saving that $4k on commission and leaving over $30k on the table.

Russell Brazil · Answer

Redfin is a real estate brokerage. They are not very good at brokerage services, however they are very good at technology.  Their website is perhaps the best website available. In fact Redfin has often said they view themselves as a technology company and not a real estate company.

Account Closed · Answer

Redfin is not in all areas of the country that is why you are getting that message

Antoine Martel · Answer

Redfin pulls data from the MLS where agents and brokers post properties for sale. If you type in an address and it says not available then you are either entering the wrong address or the property is not listed for sale and the property is off market. Redfin and Zillow help investors because you can do searched to find some comps which can help you with your investing to help find your ARV.

Dallas Trufyn · Answer

Account Closed I enter addresses correct, but they still don't show up, then I get a message saying "We are not in that area, we can email you when we are.", or something like that. If the home is not For sale currently I understand that, but how then can a person pull comps? Zillow gives you info whether the house is for sale or not. I can look for other solds in the area, but it would nice to use the subject property.

Jeshua Patrick · Answer

I am new to this site and new to investing. I have no experience with Redfin yet but I can tell you that Zillow and Trulia are full of incorrect property data that contributes to inaccurate valuations. A good example of that would be my previous house which was a 2B/2BA that they had listed as a 3B/2BA and an incorrect sq ft leading to a higher value estimate than reality. I'd have to go back and check my current property again but pretty sure it was wrong also.

Andrew Johnson · Answer

@Dallas Trufyn Redfin isn't in every market.  You could be in one metro, swipe the map to 10-30 miles away and it comes up as "not available".  They just don't have coverage everywhere yet and I really don't know the rhyme or reason behind it.  I don't think that any particular automated estimate is going to be materially better than another.  I've seen people try to average them but that's probably as much of an exercise in futility as anything else.  And, for what it's worth, you have to consider the source of "better".  To a buyer the "better" number is lower.  To the seller the "better" number is higher.  If you want to have some REAL fun try looking at apartment buildings using those "comps" and you'll see how truly inaccurate they are.  That said, I mess around on Redfin, Zillow, Trulia, Reatlor.com, etc. when I'm looking at properties.  There really no harm in it...

Russell Brazil · Answer

Nope they didnt lie. Just left off a simple fact of the subdivision because the person advising them didnt know that or didnt know the law on the issue.  No e&o claim Im sure would go through. There is simply a difference between the level of service and liabiliry protection you get when you pay for a top notch professional versus a discount professional.  Its also considerably easier to comment on the mistakes someone makes as opposed to the 85% of business being handled by the 15% of competent professionals. And when you are talking top tier agents, we are all doing essentially the same thing as we are using the same systems.

I operate in a market with a lot of stringent laws, and can be quite complicated. Not everyone lives in the lawyer capitol of the world though. So sub standard work may not differ much in other markets.

Can someone explain Redfin to me???

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