Redfin sent out a press release today stating that their buyers on average paid 99.329 percent of the listing price while buyers with other brokerages paid 100.233 percent of the listing price for homes.
While it may be true that Redfin buyers in King County paid 99% of the list price for a home from 2/6/06 to 2/5/07, an average buyer in in the same county in 2006 paid only 81.61% of the list price for a home.
I have tried to replicate Redfin’s conclusions using their criteria and I could not.
However, I did find a NWMLS statistical report for 2006 and they indicate that King County single-family-home median list price was $520,797 and King County SFR sales price was $425,000. These were all reported sales, by all agents and members of the MLS.
You can view the report here. Relevant statistics are on page 27.
Homes in King County sold by ALL agents in 2006 were sold for 81.61% of the sales price.
I think it is a mistake to take Redfin’s “White Paper” at face value and not do further research. As we all know, statistics can be manipulated to prove any point you want.
Redfin makes their claims difficult to prove by saying that they’re not allowed to republish NWMLS data, however a quick call today to the NWMLS today confirmed that we ARE allowed to mention, discuss, use and link to NWMLS reports and statistics.
So in case you missed it, here’s that link again.
Median List Price: $520,797
Median Sold Price: $425,000
Buyers paid an average of 81.61% for all single family homes in King County for the year 2006.
If Redfin customers are paying 99.329% of the list price for a home, in roughly the same 12-month period (Jan-Dec v.s. Feb to Feb), then they may be paying a great deal more than they need to for a house.