Discount brokerage model picks up steam

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

With six months under its belt, it was time to check in with Redfin to see how the Seattle-based online real estate brokerage viewed the initial two quarters of its discount realty service. What did the company underestimate in dealing with consumers? "It may sound like a cheesy answer but it's been a lot busier than we had expected," said Glenn Kelman, president and chief executive. "We are handling a lot more deals per week than we had anticipated. We want to get it right -- and our agents are paid on customer satisfaction, not a traditional commission. Consequently, it has slowed our progress into new markets like Los Angeles and San Diego." The company was honored at the annual Real Estate Connect Conference recently in San Francisco for the Most Innovative New Business Model. The Innovator Awards honor forward-thinking technology, business models and pioneers in online real estate, brokerage and mortgage companies. David Eraker, who founded the company in October 2002, recently le...