Redfin on 60 Minutes


I had to come out of retirement seclusion for this one…

Like most everyone else who reads this blog from time to time – I watched 60 Minutes this evening.

Where do I start?

1. Let’s see…Let’s use a Harvard MBA/CEO to represent one side of a story and a “certified home stager” with her name on her car to represent an entire industry.

2. Let’s allow the Harvard MBA to spit out unchecked, inflated numbers to a world-wide audience and throw a surprise attack question at the “certified home stager” who was probably doing everything she could to stop her knees from knocking.

3. Let’s allow the Harvard MBA to tell the world how inflated real estate fees are – but not ask him about his companies profitability…or lack thereof.

It is basically the same as some guy sitting outside of Best Buy selling LCD TV’s for $25 per unit. He loses money on every TV he sells, but 60 Minutes still allows him to go on television and tell the world that Best Buy is ripping everyone off.

How can Redfin attack any business model when they have no business model? Losing money on every transaction is not a business model.

I could feel my face turning red (like redfins books) when Kelman looked at the camera and told the world that he has an agent closing 8 deals every week. I believe that was a lie…and I invite him to comment on this post about that line. Redfin released their numbers a while back…the math is pretty simple…it was a lie.

This was a bogus segment. Rush Limbaugh shows less bias.

I will also throw this in…

I think it hilarious that Redfin announced that they have entered the Boston market. Calling one agent working out of his basement “entering a market” is pretty fricking funny.


Update: Glenn Kelman stops by Real Estate 2.x and defends his line about the redfin agent that “closes 8 deals a week.”  Also points out that he does not have a Harvard MBA…

I’m not sure why that Harvard MBA was locked in my brain…must be the TC effect.

I do have to chuckle at this line from Mr. Kelman in the comments:

“Redfin generates profit on each transactions, but does not complete enough transactions to turn a profit” 

Sounds like CEO, VC seeking double-speak to me.  Redfin actually generates revenue on each transaction Glenn, it is not called a profit until the numbers lose that minus sign you have in front of them.

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546 Responses to “Redfin on 60 Minutes”

  1. 60 Minutes’ story delivers 400 hits in 60 minutes flat | BloodhoundBlog: National real estate marketing and technology weblog | There's always something to howl about... Says:

    [...] &nbsp:More: real estate 2.x emerges from its Howard Hughes-like seclusion to comment. [...]

  2. Richard Greenwood Says:

    There are many older more established and credible companies offering alternative models. See

  3. tkolber Says:

    The guy that founded Redfin is gone. I think once he accepted the VC money and hired that goofy CEO the company no longer focused on what is best for the consumer. It is only about getting listings so it can get buyers. Why else would you give away listings for $3000 and not recommend a buyer’s agent’s commission big enough to draw an agent to that listing? They have to bash the traditional agent to look good when they don’t know how long that agent has been working with the buyer. The savings he quoted are based on a speculative 3% listing commission which isn’t always the case. Redfin, I’m going to smoke you like a good Rush Limbaugh quality cigar, without the VC money and even if I don’t have the liberal press on my side! Flat fee on both sides of the transaction…can’t get any more ethical than that. The Future of Real Estate Transactions Today!!!!!!
    Todd M Kolber — President and Founder of U.S. Real Estate Depot.

  4. Ted Stevenson Says:

    Check out this video of Redfin CEO Glenn Kelman while a panelist at the NY Inman Connect event back in January 2007. He goes head to head with Allen Daulton, CEO of and REALTOR.


  5. Glenn Kelman Says:

    Hi there, a review of my biography would have revealed that I don’t have a Harvard MBA.

    Redfin generates profit on each transactions, but does not complete enough transactions to turn a profit; our fixed costs are high.

    60 Minutes fact-checks every claim made by each of the people it interviews. We have had weeks where agents were extremely productive, and weeks in new markets where agents were completely idle.

    On our public website, we encourage home-sellers to offer a 3% commission to the buyer’s agent.

    The main focus of our business continues to be the buyer; Redfins founder was in fact probably the strongest advocate for also focusing on the seller. Almost all of our revenues come from buyers, and most of our volume as well.

  6. Matt Goyer’s Real Estate Blog » Blog Archive » 60 Minutes! Says:

    [...] Estate 2.0 is back, Redfin on 60 Minutes and conferred a Harvard degree on Glenn. Of course, nothing surprises me anymore about Glenn. He [...]

  7. realtybaron Says:

    Re: 8 deals per week

    I reviewed the segment again this morning. I believe the key word Glenn used was “can”….as in Refin has an agent who *can* close eight deals per week. That certainly leaves the impression that it’s happening. But it’s like a coach saying “we have a running back who can rush for 100 yards per game each week”. They’re both statements that speak of potential. In Glenn’s case, I think he was speaking to Redfin’s technological/organizational advantage over the average “traditional” agent rather than current performance.

  8. Roberta Murphy Says:

    In San Diego, Redfin has a single agent, who in the last few months has completed one sale under Redfin’s brokerage (according to the San Diego MLS). That agent must be operating out of his home, car or coffee shop because the office address is listed as being in Seattle.

  9. Stephen Graham Says:

    The 60 minutes piece gave exposure to something that most buyers are unaware of and saves them a substantial amount of money. There is nothing wrong with 60 minutes shedding light in the rebate model.

    Stephen Graham

  10. Roger Says:

    @ Todd,

    When your site looks like it wasn’t done in the Czech Republic for $5/hour, I might give it a spin. Please also put a “stop” button on the audio, you’ll keep more visitors.

    It seems that no one has given the buyer’s perspective and as an in-market buyer I see very little value in an agent from a tech-saavy buyer’s perspective. I do most of my research online, I drive by and browse properties, I can schedule showings with my RedFin agent if I wanted to and when I find something I like I buy it.

    There’s a role for traditional real estate agents — for needy clients — and they should be compensated for that. But for me, sending me an e-mail with automated listings (that I could’ve found anyways myself) does not a 3% make.

  11. Todd Kolber Says:


    You keep worrying about the site. I’ll keep saving people much more money than Redfin. Keep it simple stupid. You sound like a genius who should be doing deals on his own without any help from a realtor.

    Your second paragraph makes no sense at all.

    If you are a consumer, enjoy paying more commission. If you are a realtor, once again you hide like the others that cannot make a paragraph sound like it isn’t from a 4th grader.

    Redfin doesn’t scare me and I’ll keep my audio going because Bill Handel is the biggest talk radio host in Los Angeles and my company is the only one he endorses.

    Think that doesn’t have any affect on business. Research and find out.


  12. Boca Raton agent Says:

    Nice posts and good comments, will go to the links they suggest

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