Wed 26 Jul 2006
Mr. Kelman goes to Washington
Posted by Marlow Harris under Real Estate
[8] Comments
In response to solicitations and “cold-calling Congress” Redfin got itself 5 minutes before a Congressional Subcommittee on Housing and Community yesterday.
In their statement by Glenn Kelman, he complains about how the “industry is stifling innovation”. He continues, “We’ve posted photos of dirty agents on a Web site we called the Hall of Shame, only to have other agents apply to join.” He’s right, I did ask to be featured on the site… I’m not quite sure what I have to do to become a member, but consider this my official application 
Redfin’s main complaint seems to be how “unfair” the whole system is, how they’ve been “threatened” and how they’ve met resistance from other agents. Let’s see……Kelman’s been quoted in dozens of articles, websites and press releases about how he’s going to “disrupt” the real estate industry and disintermediate the agent, and then they complain that they’ve met with some resistance from the very people they’re threatening. Hmmm…. It could also be because of their historical hostility to real estate agents rather than their current business model. Or maybe it’s just personal. Could this be the future of the real estate industry?
Anyway, bottom line is Redfin wants the federal government to pass legislation forcing private MLS’s to provide Redfin with all their private data, and they want the right to distribute this data any way they see fit. “Redfin thus asks that Congress act to give brokerages of all types equal and unfettered access to listing data, and to authorize the Federal Trade Commission to regulate states’ minimum-service and anti-rebate laws, so consumers can make their own choices about commissions.” And while we’re at it, allow all the listing information to appear free-of-charge on all the real estate portals and then sell the leads that they get back to the agents who own the listings. And make sure you charge the agents for ads on the portal, next to the listings that were originally scraped from the listing agents site….
BTW, “Realtor” is a copyrighted term referring to members of the National Association of Realtors. Please capitalize the term. Thanks!
Further reading:
The Top Sixteen Lies of CEO’s, at the suggestion of, and with the help of Glenn Kelman, on Guy Kawasaki’s blog (is this irony or sarcasm? I can’t tell….)
Discounters, FSBO’s and Redfin – Oh My! (Rain City Guide)
Scoble sell his house — Where was Redfin?
Redfin goes to Washington (From John Cook’s Venture Blog. Note Kelman is quoted as being “kicked and spat on” by by the Multiple Listing Services in California and Washington. But a few quick phone calls to each confirm that Redfin’s application was accepted and confirmed by each, and they are subject to the same rules and regs that every other licensed brokerage must abide by. One official noted that a Redfin rep didn’t feel as if the same rules should apply to them as to other brokerages …. I guess they won’t have to worry about rules and regulations if their dream of destroying the MLS’s comes true.
UPDATE:
Read all prepared statements from the Hearing entitled “The Changing Real Estate Market.”
Peter Coy of Business Week sheds a tear for poor Redfin getting punched around like a weight bag in a gym (sniff!)
8 Responses to “ Mr. Kelman goes to Washington ”
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July 26th, 2006 at 8:56 am[...] Marlow Harris at 360Digest.com has much, much more. [...]
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Pingback from Seattle Housing Buzz » Blog Archive » Washington Redfins
July 26th, 2006 at 10:07 am[...] No sense reinventing the wheel…just head on over to Marlow’s 360 Digest regarding Redfin CEO Glenn Kelman’s recent field trip to hallowed-halls of Washington DC. Kelman spoke at a hearing before the US House of Representative’s Subcommittee on Housing and Community Opportunity on the “Changing Real Estate Market” (ie attacking the privately owned MLS’). [...]
July 26th, 2006 at 5:53 pm
Hi Marlow,
We have no hostility toward agents, nor toward you.
We are concerned that the entire discussion centers around agents and whether one is pro-agent or anti-agent rather than around the consumer. For us to claim that we belong to a profession, we have to profess allegiance to a principle more important than our own self-interest. This principle is customer service.
You thus cannot get into the Hall of Shame by hating us; to get in, as we made clear, you have to prevent our clients from making an offer, which damages your own client’s interest. I am sure that you would never do this.
We believe it is in the best interests of the consumer to ensure that every broker representing potential buyers has access to the listing. We are not an ad-driven site, but a site for buyers to find listings, hopefully to buy.
You will note that today, one of your listings was the most clicked-on property on Redfin, and was accordingly featured in our blog & our newsletter. Hopefully, Redfin.com increases demand for this listing. We could have easily featured another property, but this would not have been good for either the potential buyer or the seller.
I apologize to the listing services for saying “spat” or “kicked on” when talking to John Cook. The listing services have threatened to deny us access to listings for reasons that we believe are not within their rules, and not in the interests of consumers, but the divisive language is beneath us all. You are right to call me out on that. I already sent John Cook an e-mail to that effect yesterday.
July 26th, 2006 at 9:29 pm
Killing me with kindness, eh?
Grandstanding and exaggeration, while making for exciting copy for the papers and soundbites for the podcasts, just pisses the rest of us off.
Keep it real, tell the truth, be honest with everyone and treat brokers and agents with respect and I guarantee you and your business will be successful and prosper.
Thanks for the mention and thanks for taking time to respond.
July 31st, 2006 at 10:34 am
Have you read the text of the comments Mr. Kelman made to the Congressional Subcommittee? Please take the time. Now compare those comments to the letter posted here by Mr. Kelman.
I wish some one would fund my time to sit at a computer to sell Real Estate so I never had to leave the house. I wish I didn’t have to actually look at a house in order to sell it. I wish my customers would just look up a house on the internet, fill out the paperwork, and call me when it closes so I can pick up my little check.
You see I do look at houses every day. I get in my little car every day and look at houses. My little company takes dirty stinky little houses apart and puts them back together. I deal in the Real Estate industry don’t wanters.
It would be great if every house were as bright, shiney, and new as a book from Amazon.com. It would be great if every new house were built to exacting standards, like cars, that would insure years of durable wear. It would even be great if the house inspectors all had the same level of expertise.
The fact is Real Estate is a complicated business. The locations of today may seem like a burden in the future or may become that much more desirable. There are no crystal balls, but there are those people who spend every day in the Real Estate business.
Rather than concentrate on all the bad Real Estate agents, or bad Real Estate companies, it would be better to enhance those people who do a good job. If Mr. Kelman were offering a helpful service to the Real Estate industry it would be different. In stead, it’s my opinion, that the Redfin company wants to take the cream of the crop and skim it for profit.
I don’t see the difference between this company or a thousand other bad agents who sit at home doing Real Estate by computer.
August 29th, 2006 at 6:31 pm
I want to applaud you for your stand on this “Redfin” thing. In fact, below is my post on “their” blog. Suffice it is to say, the heart is something that is known in the begining and in the end, obviously your heart makes you who you are and you’re success is apparent. Thank you.
I’ve read through this entire post and ALL the comments. I have to take sides with CSP’s views. I am married to one of those “divorced” but not 2nd careered women you mention. I have to say, not to defend her, or be biased, because I am married to her. I would have to respond by saying; that there is nothing that makes me more proud and humble when I see my wife’s eyes tear up when she tells a 1st time home buyer that THEIR offer was accepted by a seller. You see it’s not really about the money, it’s about providing GREAT service. I have seen her take a complaining neighbor of a home she listed call her and tell her all the problems with the “flyer”, and then dump about all the issues with the owner. She turned that conversation around and eventually it resulted in a home for this neighbors daughter, whom they thought would never be able to buy a home, and it ended up that the parents dream AND the child’s dream all became true because a GREAT real estate agent knew what to do. It’s ultimately not really about the #’s that an agent might make. In fact it’s a superstition amongst agents that to calculate what they might make, once it closes, only defeats the heart of a truly committed agent. I know what it costs to market it, cause I manage the budget of our household. Yet, when I see my wife have a 80% or better conversion rate, I am fully supportive of what she does. It’s about passion and believing in the true meaning of “Home”. In fact, since I met this “2nd career” woman I sensed her passion, her heart. How dare you belittle it. These women, and men who join the ranks from that view will surely be successful, as they are in it for the results of “Home Sweet Home”. No value can be placed on this, you can’t track it statistically. An agent only knows when his/her client is satisfied. In closing, the ‘agent’ suffers in their business no matter if a mistake is made by an attorney, title company, loan officer, loan processor, etc..etc. Think about it, and interview an agent, it’s a relationship you might pay for, but it’s probably the best small investment you will ever make. signed…a proud husband of a real estate agent.
September 3rd, 2006 at 7:20 am
“BTW, “Realtor†is a copyrighted term referring to members of the National Association of Realtors. Please capitalize the term. Thanks!”
Wouldn’t this be capitalized because of a Trademark, not a copyright?
September 3rd, 2006 at 8:25 am
You are absolutely right. In my haste, I did write copyright, not Trademark. THANKS!