Last October, I mentioned that I had finally hit a net worth of zero, celebrating the occasion of being officially worthless. At that point I mentioned that my next step was to buy a house. I can now say that I finally did get down and buy a house, closing a few months ago on June […]
I recently purchased my first house here in the Bay Area, and I did it in a decidedly non-traditional way. For a few years I had been reading about a smaller real estate company known as Redfin which operated in a more hands-off way than a normal real estate firm. Redfin leverages technology and a slick user interface to help its users (most of which will not use Redfin to buy a home, but the search feature is that good) find homes on their own. Once a house is purchased, Redfin actually refunds some of the brokerage commission. In most places, 3% of the purchase prices goes to the seller’s agent, 3% to the buyers, and 1.5%, 50% of Redfin’s commission, goes back to the end user. So… what’s the catch?