Redfin is a scam

Meta
wheremeye

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wheremeye
Mar 9 34 Comments

Redfin is a brokering firm that charges by percentage of sales price, what incentive does it have to show low house price estimates? It’s estimates are not real people.
In fact it is using any random signals possible (views, interest, deliver address) to systematically increase and inflate housing market and the FOMO ppl think they’ll lose their chance to buy a home forever so they even overbid Redfin.

Redfin is basically destroying the market. And ppl are letting it.

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 TOP 34 Comments
  • Meta
    Noodl

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    Noodl
    If you think they're fake why don't you go out there and try buying a house?
    Mar 9 0
  • Meta
    wheremeye

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    wheremeye
    OP
    Redfin is taking the home buying and turning it into a FOMO and because everyone believes Redfin estimates, they’re using that to bid rather than relying on the house itself. Who cares if 9000 ppl from all over the world have viewed a house? Why would that make the estimate jump by 250k in a night?
    Mar 9 6
    • Apple
      ciyr82

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      ciyr82
      One comparable should not mess with estimates like redfin does. And just because the house has more views , it should not unreasonably increase estimates either!

      Its a domino effect of one crazy buyer affecting prices like anything!

      Redfin just relies on market sentiment and does not take into account the house itself like its condition etc
      Mar 9
    • Nightly job to update price?
      Mar 9
  • Amazon
    TQss20

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    TQss20
    You seem like you’re new to the market. Every house I know has offers 30% more than asking.
    Mar 9 1
    • Amazon
      🐟 dikk

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      🐟 dikk
      I think the OP's statement used to be true when houses sold around listing price and probably still true in some markets. Both Redfin and Zillow inflated prices to manipulate the market.
      Mar 9
  • Adobe
    faaang+

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    faaang+
    Redfin changes estimates from the time the house was listed till offer date purely based on views. I have noticed this several times. Which is ridiculous because next thing what happens is listing agent starts pitching Redfin price estimate as the offer minimum and then whatever offers come they send counters by manipulating offer price and pitting us against each other this further drives the market up due to FOMO which is created in this process. This may be supply demand issue but creating an illusion that house should be sold for this price merely based on views and not actual conditions/upgrades/age of house is ridiculous.
    I bet if Redfin estimates are blocked and people were asked to bid purely based on comps, prices won’t go up by multiple % every month.
    Furthermore I actually think this process can be straighten if MLS mandates sellers to get appraisal done before putting house on market and keep arbitrary cap on bids would make this process transparent for everyone.
    Currently it’s anyone’s guess how much the house would sell for and on top of that if you have to compete with investor buyers are in worst position.
    Mar 9 2
  • Meta
    wheremeye

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    wheremeye
    OP
    If ppl in tech are having such a hard time, think about other fields. Effectively like other populated countries were saying, artists, aspiring artists, creative folks, medical workers, social workers, non-tech ppl should just give up buying home worth millions? Making a benchmark and systematically inflating commodities is just a bubble. Imagine thing u buy were benchmarked and ppl were tricked into paying more into an auction for everything. This is clearly not a healthy way for anyone. You cannot teach/force your kids to be millionaires so that they can buy a home.
    Mar 9 2
    • Amazon
      TQss20

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      TQss20
      It’s a clear case of supply and demand. RE is a business, not a charity.

      Along with tech, doctors, lawyers, builders, other business owners, fintech people and any major professions, everyone is equally responsible. It’s always been this way. That’s just how affordability works.

      If you’re having trouble, move to more affordable places or continue to rent. Housing is a Luxury. You’re talking as though the food is out of budget for everyone.

      Redfin/Zillow are simply not manipulating the market. They’re merely reflecting it.
      Mar 9
    • Apple
      ciyr82

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      ciyr82
      @amazon, their reflection needs to ensure that is does not assign high importance to things like views ( which it seems to do) and a single whacky comparable can throw estimates up with no reason.

      I am with OP on this
      Mar 9