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Not so. As more agents learn that competing against RedFin agents is more difficult than it should be, they'll join in with RedFin. As more people learn that RedFin-style home buying works for them, they'll make RedFin a key part of their next home buying experience. I know I have, twice already.

The down-stream network effects of this are likely more significant and harder to predict, as real estate is way slower than hailing a taxi. Think desegregation.

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The current problem is if this were a truly online only method, Redfin would accept and sell listing anywhere. Currently it does not, and is only useful in a few US large population areas. I want to use a service like redfin, but they don't operate in my area. For redfin to really take off (or companies like it) and supplant the real estate broker, it needs to be more available even in rural areas.

IMO, one reason behind that is that the actual agents charge 3% no matter the absolute cost of the house. This does not make much sense since buying a 100k house sometimes involves as much work (if not more) as buying a 3M house.

As such, it is better for Redfin to operate in the markets where house prices are higher since the absolute amount of money they can save is also higher in these markets.

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