A Few Thoughts after "60 Minutes"

I've just finished watching "60 Minutes" as they highlighted the discounter Redfin in a story about the traditional 6% real estate commission.  Here are a few comments from the show:

• "Overall we saved $26,000," from recent sellers using Redfin.
• "I would make $12,000 for four hours worth of work," from a Redfin agent speaking about having been a traditional agent in the past.
• "Real Estate, by far, is the most screwed up industry in America," from Glenn Kelman (sp?) the President and CEO of Redfin.  "We feel like what Amazon, ebay, and Yahoo have done for other industries, we can do for real estate."
• Redfin charges a flat $3000 for sellers.
• When Redfin represents the buyer, they normally keep 1% and give 2% back to the consumer.
• "Our goal is to be in every major market in America by the end of 2008."  President and CEO of Redfin.

A few questions and thoughts about the program:

• The "discounters" will continue to get better at what they do.
• Exceptional real estate agents understand the value that they provide for their clients.
• Mediocre agents are in trouble.
• Real estate agents and the National Association of Realtors are making a mistake when we try to legislate the industry.  The consumer is smarter than this and government intervention is not healthy for a free market society.
• Most consumers understand value.  When exceptional agents show up and provide an exceptional experience, they will continue to be paid well as a professional.
• Competition gives us all the opportunity to get better...it is great at inspiring excellence.