Redfin, a real estate start-up that is known for shaking things up a bit has launched a new initiative entitled The Real Estate Consumer Bill of Rights. Redfin CEO Glen Kehlman shows a lot of courage and perhaps even more media savvy by undertaking this effort. I will spare you the details, so here is the list without the explanations he provides:
1. Choose the services you pay for.
2. Know how your agent makes his money.
3. Know when you are committed to an agent.
4. Know what services your agent will provide.
5. Have an agent that represents only your interests.
6. Know the commission refund you can get before you buy a house.
7. See all the houses for sale.
8. Have an open discussion about a house for sale.
9. See all the information available about a house for sale.
10. Be sure your agent will show your house to everyone.
A lot of people have spent considerable time weighing in. Notable positive reviews include Kevin Boer of 3 Oceans Real Estate ,and Joel Burlesome of Future of Real Estate. Notable undeclared bloggers are and Ardell Dellaloggia of Rain City. Notable undeclared bloggers include Christine Forgione of NY Houses for sale. A thorough and negative review comes from Greg Swann of Bloodhound. All worth a read.
This is a complicated issue that I am still assessing but in principal, I like anything that gets people talking about making things better for us consumers. In this regard, I support Glen’s efforts.
There are some areas that deserve some more thoughtful consideration, particularly when the answer results in a request for MORE legislation. My experience with private Board deliberations versus on-the-ground reality for some of the largest financial institutions in the country is that big business uses big government to create advantages for themselves vis-a-vis their competitors (large and small) and the silent majority of consumers. There is nothing Machiavellian about this reality. Ours is a system that wants all sides to speak-up. Unfortunately, those who speak the loudest (usually via money) get heard. So creating more layers of laws means we make change more difficult and less likely. Also, we cede legislative influence to money politics. When was the last time you paid into a lobbying fund?
Glenn can’t fight the fight with money so he is enrolling the people. Bravo! Is it good for him? Yes, absolutely. Discussion of this is a waste of time. Why else would he propose it? Does this matter? No! Glenn has started a discussion and I am much better informed as a result (are you?). Do I see the validity of some of the arguments from opponents such as separating commission paid by buyers and sellers so that we get better align of incentives and flow of money into the ecosystem? Yes, very much so! So let’s keep the discussion alive and thriving and then let’s demand some changes where we agree. Glenn, thanks for getting us started.
