In an open letter<\/a> penned by Redfin CEO, Glenn Kelman and his leadership team, wherein tidy phrases were tossed around like a room filled with clever PR graduate students looking for extra credit. The National Association of Realtors (NAR) was recently in the spotlight<\/a> over the behavior of a now-resigned elected President whose (alleged) sexual harassment spread like wildfire, now likely influencing who the next CEO will be, as current leader Bob Goldberg had already announced his retirement months prior<\/a>. <\/p>\n\n\n\n Although Kelman was classy about not immediately using this moment of chaos to his benefit, he inevitably showed up anyhow. <\/p>\n\n\n\n What caught our attention was the fact that the letter casually slides in the real reason Redfin is “leaving” NAR…<\/p>\n<\/blockquote>\n\n\n\n Did you<\/em> notice it? <\/p>\n\n\n\n The primary reason for this public relations move was almost missed by many since the salaciousness of sexual harassment overshadowed the other reason cited – they claim that NAR has a policy that agents must pay a fee for representing buyers in every listing transaction. That claim is bunk, as all commissions are negotiable. Kelman also notes that Redfin agents have collectively paid millions in annual membership dues over the years. What we love about Kelman’s evil genius is that he doesn’t hide that a NAR divorce isn’t even really possible. <\/p>\n\n\n\n Per his letter, “In about half the U.S., including in cities like Charlotte, Dallas, Houston, Las Vegas, Long Island, Minneapolis, Nashville, Phoenix and Salt Lake City, we can\u2019t quit NAR individually or en masse, because NAR membership is required for agents to access listing databases, lockboxes, and industry-standard contracts. It\u2019s impossible to be an agent if you can\u2019t see which homes are for sale, or unlock the door to those homes, or even write an offer.”<\/p>\n\n\n\n Sure he continues to offer a “solution” by again<\/em><\/strong> asserting that NAR should be divorced from the MLS process. <\/p>\n\n\n\n For anyone new to real estate, you might not remember Kelman’s 2007 bombshell, but here’s a quick primer from a 2009 editorial from our<\/em> founder, Benn Rosales<\/a>: Most notable of the companies set on traditional brand destruction as a paradigm in real estate were Craigslist, Redfin, Zillow, and now defunct Iggy\u2019s House also known as Buyside Realty.<\/em>“<\/p>\n\n\n\n In 2007, Kelman was an evil genius who ended up practicing real estate just like everyone else in the industry. He’s always been a brilliant public relations manipulator (and I say that with all due respect, seriously) – today is nothing different. And Kelman knows that.<\/p>\n\n\n\n So who is the real winner here? “Consumers,” the slick Kelman would likely say. Consumers don’t care and won’t care since the issue is so extremely nuanced, and Kelman knows that. Even a huge number of practitioners don’t or won’t care either (sadly, and for the same reason), and Kelman knows that. <\/p>\n\n\n\n But they’ll remember the headline “Redfin leaves NAR,” and how radical<\/em> that sounds, and while Redfin’s still just a brokerage and always will be, Kelman gets to play Disruptive Punk yet again, and ultimately, very little will change.
“We’ve tried to love NAR. But enough is enough,” Kelman concludes as if holding back almost believable tears. <\/p>\n\n\n\nRedfin’s red herring<\/h2>\n\n\n\n
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Ah, there’s the red herring – it’s all about the benjamins, baby!<\/p>\n\n\n\n![\"\"](\"https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2023\/10\/Glenn-Kelman-Redfin-Portrait-1024x683.jpg\")
<\/figure>\n\n\n\nCan they even leave if they actually wanted to?<\/h2>\n\n\n\n
A fun throwback to the 60 Minutes days<\/h2>\n\n\n\n
“On May 13, 2007 CBS NEWS aired \u201cChipping Away At Realtors\u2019 Six Percent<\/a>\u201d and reporter Lesley Stahl featured Seattle venture Redfin on 60 Minutes. Suddenly, offline agents not paying attention to the online war between traditional and non-traditional real estate were thrust into the middle by questioning (sometimes outraged) consumers. Online blogs lit up with angry consumers and with Realtors defending themselves and their brands. The National Association of Realtors caught off guard simply responded with talking points and very little guidance, still reeling from the fall of David Lereah. Local and State boards were inept to respond as their means of communication were still traditional in nature- help would be far away, or none at all. Disruption was winning, as the online fight was one sided- few agents blogged, or even knew what a blog was, but for the next year, blogs and national media would be the battle ground while those offline (therefore uninformed) would be the most impacted.<\/em><\/p>\n\n\n\n![\"\"](\"https:\/\/theamericangenius.com\/housing\/wp-content\/uploads\/sites\/2\/2023\/10\/glenn-kelman-1.png\")
<\/figure>\n\n\n\nWho is the real winner here?<\/h2>\n\n\n\n
But you and I both know better – it’s Kelman. <\/strong><\/p>\n\n\n\n
And Kelman knows that. <\/p>\n\n\n\n
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