Redfin claims >10,000 customers a year

In the US, 5.25M homes are sold per year. That means their market share is negligible. The funny thing is everyone I know uses the redfin website to search homes for sale. Clearly that web technology hasn’t translated to people using their agents.

I am sure Redfins business plan is to be bought out…Zillow maybe?

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Zillow buying Redfin makes no sense. Redfin is a brokerage, and the whole point of Zillow is playing nice with all brokerages out there. Having its own agents is the fastest way to alienate agents paying many grands a month advertising on Zillow.

Redfin’s struggle is a cautionary tale having the best tech is not enough. People, especially first time buyers, need all the old fashioned hand holding they need. Real money is made on the seller side. I have never received any mailers from Redfin on any of my properties. I receive multiple from old fashioned agents, often the same ones will mail me a postcard every year. So Redfin fancies itself as a tech company but it makes money from the old-fashioned agent side. It suffers from identity crisis.

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I hope Redfin does well.

I agree the focus should be on sellers in this market. How many bids do most people make before they win? If you think about situations with 10+ or 20+ bids, that’s a lot of buyer’s agents that did work resulting in zero compensation. How many times are they doing that work before they get one that pays?

Redfin has minimums houses they’ll put offers on. They are only going to play ball in large metros.

It’s not bad. Assuming the 10k customers either sold or bought… And let’s say average sell price is $250k… And assume commission 2%… (I don’t know what is redfin’s commission, I assume it is lower than the typical 3%).

Just ball park estimate, that would be $50M in revenue. If they operate in coastal cities, then sale price and commission will be higher.

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Some agents are boycotting Redfin offers. I went to an open house a long time ago where the listing agent flat out said he wouldn’t look at offers from Redfin.

Why?

Because they feel threatened by the possibility of an online brokerage taking over their traditional RE business.

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And these agents can get disciplined by the bureau and open themselves to lawsuits. Listing agent has fiduciary duty to the seller.

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At the time I immediately lost interest on that particular house because the agent was too crooked.

Redfin lost when they refused to play according to the new era. They put up their website without any emotion. Basically, when you create a web page, you mine it with pay to click. They should have had Home Depot, paint stores, escrow companies, you name the businesses dealing with the housing market having a banner in their pages, but no!

By the way, that agent stating he wouldn’t accept any offer could face his license being taken away. His fiduciary duty is to present any offer to the seller. Unless the seller said he wouldn’t take them from Redfin.

The law is one thing…But in practice listing agents will double dip as much as they can…So ignoring a redfin bid is no big thing…Listing agents act unethically all the tome…Hardly news…My Nevada agent is going after one who screwed her over in Genoa…cost her a big commission. .wild goose chase at best

I had an agent say the same thing to me. He then followed me around trying to pick me up as a customer and get information about what I was looking for while glaring at my kid who was touching everything in the house. I just needed to escape. Such a creep.

I think it’s pretty clear that if a winning offer is in the same brokerage as the selling agent, that they’ll push for their own agent’s offer, but otherwise, whatever makes the most money…