For Sale By Owner

Redfin Corporation, real estate online broker, announced that it had closed a $12 million series C financing led by Draper Fisher Jurvetson. The goal is to use the financing to keep up its programme of national expansion and highlight its own website.

The company has opened its real estate e-commerce facilities for Washington DC and Baltimore regions. The result has been an addition of about 50,000 to its property list. The latter inaugurated its East Coast headquarter at Falls Church in Virginia. Catherine Jardine will conduct the operations of the local real estate business.

It will interest the residents of Columbia, Anne Arundel, Baltimore, Howard, Montgomery and Prince George Counties in Maryland that the company has now extended their services to these areas also. It also covers its operations to Arlington, Fairfam Loudoun, Manassas, Prince William and Stafford Counties as well as the cities of Alexandria and Falls Church in Virginia.

The strategy of Redfin is unique. It includes maps, listings, tax particulars and analytical reports being made available to customers. By using Redfin.com they can earn a refund from most of the commissions, which so far was pocketed by the broker. The clients would be helped out in the oceans of paperwork, presentation of offers, negotiation hassles and the final chapters of the deal.

The clients of particular districts can now trade in MLS listed properties at the click of the mouse. Information is gathered via the web and then the nitty-gritty can be worked out with the local Redfin agent as regards price, agreements and escrow.

The incentive is that buyers availing of Redfin get two thirds of the commission that is refunded at the time of closure. For a property worth $500 thousand the usual 3% commission is due to the agent of the buyer. The refund figure would be $10,000. In the case of a house priced at $1 million the calculated refund would be $20,000. The sellers pay a flat fee of $3,000, which leads to a neat savings of $12,000 over the usual commission of the agent of 3% on a house worth $500,000. Moreover each prospective buyer is given free afternoon web-tour of sites. Unlike any other, Redfin pays its agents extra bonus that is calculated on the satisfaction of the customer and not commissions. It offers the customer 100% satisfaction and refund of all commissions and fees if the customer is not happy.