Sat
Faux Redfin
Posted by Marlow Harris under Computer & Internet, Real Estate
[11] Comments
While reading Real Estate Webmasters forums, I came across a fellow named Ron Park from Tuscon who was enamoured with the Redfin site, so he hired a tech company in India to try to re-create Redfin’s mapping technology and cababilities. He wanted a Redfin clone for the Tuscon real estate market, and it’s unclear if he just wanted the mapping capabilities or if he was also going to copy their business model too, but he’s unhappy with the final product.
By hiring a discount off-shore company and Google maps instead of MS Virtual Earth, he got a pale imitation of the actual Redfin technology, and the map is slow and buggy.
It looks like, from his comments on the forums, that he paid about $10K for a site that probably would cost about 10 times that to develop, but now he wants to dispute his bill and he wants his money back.
By doing a little research he could have had an acceptable mapping feature to frame on his website using Real Bird, for $19 a month, that integrates listings from his own MLS. I use Real Tech and get an adequate mapping tool using Microsoft Virtual Earth and I pay $10 a month for that, and I’m able to put it on Seattle Dream Homes for a seamless home search. It even comes branded with my photo and contact information, and there are some great features that allow a shopper to save their favorites and forward those to me for future viewings, plus they can save their search criteria and have new listings forwarded to their in-box everyday.
The folks from India, taking the directive to make a Redfin clone seriously, even added a “Sweet Digs” section and a “Redfin Forums” feature. No Kelman-type PR master was included, however.
11 Responses to “ Faux Redfin ”
Trackbacks & Pingbacks:
-
[...] 27, 2008 by Dustin …wrong. Website development is hard stuff, even when you know exactly what you want to [...]
-
[...] thread has been commented on by a few people, Marlow, Glenn our CEO and Savan our former [...]








OK, both mapping tools, real tech and real bird seem a little fast. I’ve heard that also from people who use the John L Scott site. Maybe it’s because there are sooo many listings on the market it gets confusing with the bunches of houses.
Huh. Last I heard, asking for, “a Redfin.com clone, in all functionalities and appearance.” was quite the Federal copyright law violation.
I’m no attorney, but I bet Redfin has one on retainer…
What was this guy thinking????
The average sales price of a home in Tucson is about $250K so if this guy is modeling Redfin and refunding 2/3rds of the commission, at 3%, that leaves him with about $2500 for each closed home sale. This guy would have to have significant market share just to break even, let alone make any money.
Considering Redfin has been actively developing improving their site for the past 3 years or so and probably has employed an average of 10 software engineers (let’s assume $100K each/year) during that time, I suspect Redfin has sunk at least $3 million into their web site in engineering time/salary alone. When you add the cost of employee benefits, office space rent, hardware, software, data center power and bandwidth, I wouldn’t be surprised if Redfin’s total web site costs approached or exceeded $4 million.
Developing world class software is not cheap or easy…
Wow. Yeah, maybe you’re rignt. $4M? But is it worth the cost? Do you think househunters really need something with all those features? Professional agents access MLS sites using 10-year old technology and are easily able to do their job with those limited tools and a static search just fine. Personally, I find the maps distracting and I prefer just a straight list from which I put together my daily tours. I know where I’m going and I suspect most other agents and buyers do to and the maps take so long to load.
Maybe I’m just a Luddite.
I applaud him for his effort…..but outsourcing less then menial tasks is a gamble…. it can be done, no doubt, but many people don’t realize that many times you are not getting apples to apples quality when you outsource to India….the “savings” that people see blinds them to the quality of work they might receive and if they are not technically savvy in the first place, they may not even be aware that there are differences in quality…. they figure a website is a website is a website…..
Among other issues, zolve.com has similar issues in the end product as it too was outsourced……. but that is another story altogether…..
that’s a great tale. reminds me of this guy:
http://mattmaroon.com/?p=337
who posted a project on eLance to build a programming language where he could type “clone ebay” and get a perfectly working version.
He got two bids for $1000
sounds like Ron got overcharged.
Well, I think it’s safe to assume that John L Scott (and C.B. Bain as well) have sunk similar amounts of cash into their web sites and IT infrastructure. (I believe that JLS & CBB have an ownership interest in RealTech). So, don’t think Redfin is the only real estate company spending big money on their web site.
Redfin is using venture capital money to pay for the engineers, but they also have a presence in 7 major markets (all of which have high median property values relative to the rest of the country). If they can use their web site to gain market share, the business model could work. I’m not saying it will, but I suspect that’s the elevator pitch.
Technology wise, Redfin is one of the big boys. The more interesting question is why JLS & CB Bain are sinking that kind of coin into their web sites?
I don’t think they would invest the money into their web sites, unless they had reason to believe it would help grow their respective companies.
I worked for 10 years in custom software development, I even ran a small consulting company for a while. I used to go elance.com and the like for projects. They were always overrun with “I need a clone of asuccessfulsite.com. Timeframe: 1 month, Budget: $2000†Followed by about 2 dozen responses from offshore companies, mainly in India. What’s sad is you can get a working “clone†up and running pretty quickly and cheaply. It’ll be just fine until someone tries to use it though!
I never competed on price, just quality. I even implemented a policy,where if you had tried using an offshore company, and wanted someone to “just clean up some of the code†I tripled my rates.
I worked for a small company that was in some of the same markets as Seibel, and their strategy to compete with them was to “put out an equal (or better) product, much faster, and with less developers.†Needless to say, they are no longer among us.
I’ve read many, many stories like this one, and some much worse, but I still get a grin out of it and just shake my head. What are people thinking? You get what you pay for!!!
Also thanks for the hints on the mapping technologies. I’m looking to add that to my site and I’ll be checking them out.