I like Redfin a lot and find it surprising that its attempt to undermine the absurdly high 6% commission charged by real estate agents hasn't worked better in the marketplace.  This fantastic article (by +Brad Stone at BusinessWeek) explains why.

Quoting: "So far, Redfin hasn’t convinced many people that brokers, or their 6 percent take on most deals, are in any real danger .... Redfin encountered all the forms of industry bias predicted by the Stanford economists. It got angry phone calls and e-mails, and agents steered customers away from its properties ... The company also discovered that its customers really did want more hand-holding ... It scrapped the idea of charging for home tours—customers hated that—and because of the increases in service, it overhauled its fee structure. For sellers, the flat fee is gone; they’re now charged 1.5 percent of the sale price of their home ... 'Consumers don’t really care about commissions. They say they care, and they talk a big game in the off-season. But when push comes to shove and it comes time to sell their home, the transaction is so infrequent and so highly emotional and expensive—and consumers are so prone to error—that they turn to a professional.' ... Economists, like the University of Chicago’s Syverson, watch and wait for a real change in the market. 'The Chicagoan in me says there is so much money on the table that someone will figure it out eventually,' he says. 'But I will admit, I’ve been impressed with the resilience of the old model.'"
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