Tagged: failing real estate business models

Redfin competitor?

The brokerage findwell, in a press release issued today, appears to be setting themselves up as a alternative to Redfin, refunding 50% of the commission to a home buyer.

In their press release, they claim $6.6 million in closed sales in the first quarter of operations, however, I’m finding only $5.4M in all of 2008.

Setting yourself up as a discount broker and then naming your competition seems like a bad idea.

From Notorious R.O.B (via 4realz.net/hotlist)

Offering items at a sale price is a very tempting tactic. In the short term, it drives traffic and sales. What you lose in margin is made up in volume. Problem solved, right?!

Bigger problem, created. What you’re really doing is eroding your long-term margins and your long-term sales. (This is especially true if you run a business based on quality and value versus being a low-price provider.)

According to their press release, they’re driving customers around in a “findwell MINI” – a green MINI Cooper marked with the findwell logo and printed with the phrase “Full Service. Mini Commissions.”

Didn’t Foxton’s US have Mini Cooper’s before they went bankrupt?

Foxton\'s Mini

Foxton’s UK has just called in the investment bank NM Rothschild to save it only a year after it was bought by the private-equity group BC Partners.

Findwell takes on Redfin in real estate