Bay Area real estate agents under siege

SiliconBeat reports today that Redfin, an online real-estate brokerage, has picked up $8 million in funding from investors led by Paul Allen's Vulcan. The Seattle-based company has also expanded its one-year-old service from Seattle to the Bay Area. Redfin aims to compete with human real estate agents by working for a fraction of traditional real estate fees. It's a development that would seem inevitable -- SiliconBeat describes today's news as "one more nail in the coffin of the wealthy Bay area real-estate agent" -- but entrenched agents are not likely to accept it without a fight.

Indeed, writes TechCrunch, Redfin already has "war stories to tell about threats, stalkings and other disturbing behavior towards their employees and some customers from ... angry real-estate professionals." For their part, TechCrunch readers, including one self-described veteran of online real estate, have posted cautious comments about the company's chances for success: "There is an endless list of corpses around this business model," writes Wil Schroter, noting there are nearly one million licensed U.S. real-estate agents. "Technology people love to conveniently overlook installed bases."
Posted by Oliver Ryan 9:58 AM 0 Comments comment | Add a Comment

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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.