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How Redfin created a real estate marketplace and why I think they become THE real estate marketplace of north america.
The holy grail of real estate is to operate THE marketplace that provides the tools for consumers to digitally transact.
Up until now, a real estate marketplace has not existed because the transaction occurs between agents with fixed fees (3% buy / 3% sell) paid by seller.
Up until now, a real estate marketplace has not existed because the transaction occurs between agents with fixed fees (3% buy / 3% sell) paid by seller.
Redfin's company profile: "Redfin operates an online real estate marketplace and provides real estate services, including assisting individuals in the purchase or sell of home."
The goal is to become a real estate marketplace, but who are the participants if the price is fixed?
The goal is to become a real estate marketplace, but who are the participants if the price is fixed?
Over 14 years Redfin created a sell side market participant by charging 1% listing fees.
Low listing fees created a sell side market participant with agents competing on price.
- Ok, but what about a buy side participant?
- Well, the DOJ took care of that last week.
Low listing fees created a sell side market participant with agents competing on price.
- Ok, but what about a buy side participant?
- Well, the DOJ took care of that last week.
The DOJ ruled that NAR must support a buy side marketplace with transparent fees (Read ruling below).
- No more price fixing. FINALLY, a buy side market participant. https://www.justice.gov/opa/pr/justice-department-files-antitrust-case-and-simultaneous-settlement-requiring-national?distinct_id=rk6Vp3rNI&user_email=garrett%40movewithgarrett.com
- No more price fixing. FINALLY, a buy side market participant. https://www.justice.gov/opa/pr/justice-department-files-antitrust-case-and-simultaneous-settlement-requiring-national?distinct_id=rk6Vp3rNI&user_email=garrett%40movewithgarrett.com
What was CEO Glenn Kelman's response to the ruling by the DOJ. "This is big."
Read his full thoughts below. https://www.redfin.com/news/the-truth-comes-out/?utm_source=twitter&utm_medium=earnedsocial&utm_campaign=1026416
Read his full thoughts below. https://www.redfin.com/news/the-truth-comes-out/?utm_source=twitter&utm_medium=earnedsocial&utm_campaign=1026416
What happens next?
- It's my belief that Redfin will begin to match home buyers and sellers directly through their website/mobile just as they told us they would in their S-1.
- It's my belief that Redfin will begin to match home buyers and sellers directly through their website/mobile just as they told us they would in their S-1.
S-1: "We believe listing more homes and drawing more homebuyers to our website and mobile application will let us pair homebuyers and home sellers directly online over time, further improving our service and lowering our costs.
https://investors.redfin.com/node/6356/html
https://investors.redfin.com/node/6356/html
- If successful, I believe Redfin will become THE real estate marketplace in north america. They will use their platform to lower fees and decrease friction with integration of mortgage, title and repairs.
I am long $RDFN
I am long $RDFN
