Can the Redfin model be reported like others?
It is often grumbled about on the West Coast that Redfin touts that their brokerage comprises of a consistent percentage of various markets’ “top agents,” comparing their production numbers to single agents in the same market.
This fall, Redfin’s Courtney Wenclawski wrote, “Nine Redfin Washington Metro & Baltimore agents finished in the top 20 out of the 10,700+ buyers agents in the area in the second quarter of 2011. We pulled these numbers from MRIS, the database for real estate transactions and listings for Baltimore-Washington, DC region, and ranked agents who represented home-buyers of single-family homes and condominiums in April, May & June based first on number of deals, then by total dollar amount.”
Wenclawski writes, “When you work with Redfin, you get great customer service while working with some of the most successful and active agents in the region. Most agents spend around 80% of their time finding new clients, but Redfin agents don’t need to prospect since folks come to us on Redfin.com. As a result, Redfin agents can spend all their time serving clients: answering questions, hosting home tours, writing and negotiating offers, and listing homes. Redfin agents are experts in today’s market because they spend more of their time negotiating and closing deals, not making sales calls.”
Rebutting the data
To the statement that “Most agents spend around 80% of their time finding new clients, but Redfin agents don’t need to prospect since folks come to us on Redfin.com. Redfin agents can spend all their time serving clients: answering questions, hosting home tours,” FranklyRealty.com broker Frank Llosa asked, “Are you referring to the “top” agents listed here? They are giving those home tours? I didn’t know that. Or is there more of a team structure that allows the Redfin agent that signs the contract (and other steps) to get credit for the entire transaction that several non-listed agents were involved in? If so, that seems a little misleading to compare a “team” to “individual” Realtors and then say Redfin agents, and the teams that back them, are the top “individuals.” Facts are facts… unless they are skewed.”
Redfin has not responded on their site to Llosa’s allegations that they are couting “team” efforts as an individual so the brokerage can claim they offer more top agents than others.