Real Estate Broker’s Insider: May 15, 2007

Terry Sanford sees confilicts galore in the way agents represent buyers.

One of Sanford’s gripes: A buyer’s agent gets paid more if his client pays more, which doesn’t exactly encourage the agent to steer the buyer to a lower-priced house, or to bargain hard at the negotiating table.

“We’re incentivized to get you to buy a bigger house, or to muff the negotiations,” says Sanford. “How can you represent someone’s interests if you’re going to get paid more if they get screwed?”

Flat-Fee Broker Targest Value-Minded Buyers With $3,995 Commission

Banker & Tradesman: May 7, 2007

Redfin will be a key competitor for Territory Real Estate, an online agency that represents only buyers, which weeks earlier announced its formal launch in Boston. Redfin rebates 2/3rds of their commission while Territory Real Estate charges a $3,995 flat fee.

Industry leaders are watching to see whether Redfin and Territory Real Estate sink or swim in this market. Traditional real estate brokers in recent years have clashed with discounters and Internet-based firms like Redfin & Territory that don’t rely on the typical commission model.

Redfin Dips Its Toes in Boston Market