Archive for May, 2007

Redfin on 60 Minutes

May 14, 2007


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.