he Oppenheimer analyst team listed a litany of key risks for Redfin, ranging from an inability to gain market share as a new entrant to the same challenges more established players face, such as meeting regulatory burdens, and even having to deal with the possibility of even newer, more revolutionary real estate models emerging.
“The company has a history of unprofitable operations and may never become profitable in the future,” the analysts wrote. They reiterated their outperform rating on the stock but slashed their price target to $27 from $31. Shares were trading at about $21 mid-morning on Friday.
Shares are down 16% over the past three months, while the S&P 500 SPX, -0.35% has gained 6% and the Dow Jones Industrial Average DJIA, -0.04% has gained 7%.
We have a service through work called Nest. It seems to be a referral service for agents and mortgage brokers. We get a 0.5% refund on the transaction value from each service. That seems crazy good for the mortgage service.
Redfin is just a plain old boring RE brokerage shop masquerading as a tech shop. What’s so high tech about Redfin anyway? its website? iPhone app? It’s the same old business model of charging sellers for being the middleman. Did their tech drive down costs low enough to give them an advantage? I am not even sure that’s the case. Anyhow their low costs haven’t gained them a lot of market share that’s for sure.
The ones who make money, make it rain. Rest 90% struggle.
RE commissions are still too high esp for coastal cities prices. The 90% realtors who struggle, do so regardless of the high commission %, while the 10% who make windfall don’t really earn the high % cut and industry is ripe for a disruption wrt lower selling costs. When it happens, it’ll only affect the top 10% realtors since other 90% struggles no matter what!
I got back 0.775% back from Redfin. If traditional RE Agents pay me back 1% or more I will go with them else… there is Redfin or something/one similar.
I liked Redin’s tool for scheduling tours. You just pick a time slot and pick the homes you want to see. The downfall is they didn’t communicate in advance if homes were unavailable to tour. I usually ended up touring 3-4 of the 6 I selected.
