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@gatsby great data Many, many companies have tried, and yet in 2004 when Zillow, Trulia, Redfin, etc. Were getting off the ground, about 90% of people in the US
by bernardlunn 11y ago
@gatsby great data Many, many companies have tried, and yet in 2004 when Zillow, Trulia, Redfin, etc. Were getting off the ground, about 90% of people in the US used a broker to sell their home. In 2014, it was still 90%.
I assume problem is it is such a big ticket so sellers don't want take the risk - same reason we still use ibankers for M&A and IPO?
- gatsby 11y agoRight. This is part of it. Real estate is still the largest purchase most people make in their lifetime, and there are tons of things to deal with: inspections, title companies, escrow accounts, taxes, etc. I'm overgeneralizing, but if you're selling a home and you're not wealthy, you are terrified to make a mistake that could wipe out a big chunk of your net worth if you screw up the sale, so you use a broker. If you're wealthy, you don't care about the 6% fee, and luxury brokers have already sold you on the value proposition of extra marketing and hand-holding from the days when you weren't as well off and buying your first home.
- plonh 11y agoFWIW, this is rentals, not sales. Slightly different. But still, Redfin long ago gave up on eliminating the middleman, and is now content to try to be a better middleman.