Good News for Redfin

Today TechCrunch reported that Redfin has turned profitable!  I think any kind of change in how we buy and sell real estate scares agents, but making more information available to buyers and sellers seems very positive to me.  One of the reasons that Redfin was created was because the company wanted buyers and sellers to know what their agent knows to make the agent more like a partner rather than a salesmen.  The agent guidelines are very specific with Redfin so that you know what you’re paying for and the agent knows what to expect from helping you find or sell your home.

Here’s an excert from the article on TechCrunch, it focuses more on the financial side of the business: The Seattle-based startup represents buyers and sellers in home real estate transactions for far less than the entrenched industry rates that take 5%-6% of the sale price of a home and split it between buy and sell brokers. On the buy side they reimburse 50% of the fee they receive back to the buyer. On the sell side they charge a $5,000 – $7,000 flat fee. The normal broker fees on a million dollar house are up to $60,000, so the savings are obvious.

What do you think about Redfin?

Full TechCrunch article available here.

Tagged as: Real Estate, Redfin, TechCrunch