Once my wife and I made the decision to relocate back to the mainland, and with our house being our most valuable asset, we took our time in interviewing potential realtors to sell it. We met with a former co-worker who is a broker of a flat-fee real estate company but came away unimpressed with his lack of preparation and seemingly disinterested demeanor. It was as if he took our business for granted since we knew each. When we set up an appointment via Redfin's website and met with Ali back in October 2017, months before we even decided on a listing date for our house, we came away impressed with her preparation, knowledge, and overall professionalism. We meant to talk to other realtors, but after meeting with Ali, we felt comfortable we've met our realtor to sell our house.
Redfin is a fairly new competitor for real estate services in Hawaii, having established a presence on Oahu back in early 2015. We were aware of Redfin from their website with real estate listings on an interactive map back in 2004 and learned of them branching out to home buying and selling in 2006. It obviously took a while for them to get to the islands...and even parts of the mainland are still not serviced by Redfin. So, you might ask, why go with Redfin when there are other established competitors on island offering full-service realty services, either with the traditional full commission structure (i.e. 6% commission with 3% each for the seller's and the buyer's agent) or flat fee?
Before I answer the question above, I wanted to know how many have actually read the entertaining and thought-provoking book, "Freakonomics," by economics professor Steven Levitt and journalist Stephen Dubner. If you haven't, I strongly invite you to check it out from your local library. In the book, the authors delved into incentives that shape human decisions and actions...and clearly illustrated how a home seller's financial incentives are not perfectly aligned with their realtor's. Case in point, while both the seller and their agent would like top dollar for their house, for an $800,000 house (with a 6% commission, that would equate to $48,000 shared equally between the seller's and the buyer's agent...as well as their agency/broker), an increase, of say $10,000 in sale price equates to no more than $150 in additional commission for the agent! Would an agent truly work that hard for an additional $150? Especially if it would mean a possible longer time on the market?
So...why Redfin? As stated above, my wife and I were truly impressed with Ali. More importantly, the lower commissions without sacrificing quality of realty services offered, appealed to us. Redfin charges 1% commission for listing our house while the buyer's agent gets 2.5%. So the commission totals 3.5% (which for an $800,000 house comes out to $28,000) instead of 6% (or $48,000)...a savings of $20,000! Redfin offers the same services as the other full commission competitors, with professional pictures with drone pics (when applicable, as it was for us), MLS listing, professional flyers and ads, expert advice, and even an interactive 3D Matterport virtual walk-through...all backed and supported by Redfin's powerful website and app. It just seemed like a no-brainer...same services (if not better, after seeing some of the comparable listings out there) for less cost.
Now, back to Ali. She stayed engaged with us through the months, informing us of trends and comps, as well as taking us to a few open houses in our area to get a better idea of what we need to do to better prepare our house for listing. While we knew we weren't her only clients, we felt like she gave us the requisite focus and attention with her timely responses and informative updates. More importantly, we felt she genuinely looked after our best interest.
We initially wanted to list our house immediately after we returned in early April from an extended trip to the mainland. Cautioning how the market slows down leading up to "Tax Day", she suggested we list the house after taxes were due. We wouldn't have thought about that. She also provided good advice on pricing our house. I thought we were seasoned home sellers and buyers...but emotions always get in the way. We listed our house after Tax Day, and within 10 days and 2 open houses, we received 4 offers and had the "luxury" of choosing the best one. Ali, with her many roles as our realtor, even played the role of a psychologist, "talking us off the ledge" a couple of times when we got stressed about something.
In this fairly hot housing market, and with a house that shows well and very well maintained, it was all about great exposure and marketing, proper pricing and timely listing. Ali guided us through all the phases and we are grateful for all she's done for us. We can't recommend her, and her Redfin team, highly enough to our friends who are thinking of selling their house.
PS...we accepted an offer over asking price and closed within 47 days read more