As seller can no longer post commission on MLS. If I can sell on Redfin for 1% fee, why would I hire a traditional agent for 2.5% fee? Isn't that more than twice as expensive?
Saving 1.5% on a $1,000,000 house is $15k saving!!!! (Now imagine a $5M, $10M, $20M houses 🤯)
My friend and family realtor is no longer "free". Suddendly I will be way more cost conscious in choosing a buyer agent.
Redfin has $1B in revenue in the worst real estate market in 40 years at a $925M valuation
Redfin Next program seems to well, and its financials seems to do better and better every quarter, Fed lower rate next month and into next year will be the meat on the bone
Any thought?
Any thought on Redfin stock ($rdfn)
byu/Ihateshortseller inwallstreetbets
Posted by Ihateshortseller
18 Comments
The stock is down almost 25% YTD where as UWMC (a wholesale mortgage provider) is up 28.77% YTD. How is Redfin a good buy?
I have puts so the bullish sentiment is good gives mms a reason to dump it
2.5% for an agent? Damn I’ve never paid below 6%
If rates go down and sidelined buyers get more anxious to buy they should be a decent winner given their small market cap and popularity with home buyers. They have great technology and are very popular.
The problem is interest rates might not decrease as much to cause a buying boom. They probably will have to dilute if the market doesn’t turnaround soon.
I think it’s a decent gamble imo. And yes when you buy a volatile stock like redfin it’s a gamble.
I’ve been heavy into redfin (3k shares) for a couple years now. I don’t expect it to breakout until interest rates drop significantly and transaction volume recovers. You’ll get a spike when the Fed does its first cut but I anticipate chop until we hit the rate cut bottom.
Priced in since they announced it
Position?
People who sell $5m, $10m, $20m houses don’t use Redfin.
While Redfin next seems like a win. The problem they are going to eventually have is agent retention. No matter how good the site and service is the companies revenue mostly comes from sales. The website and the search function is great but nothing someone else isn’t already doing. IMHO the true value in Redfin is its CRM software known as agent tools. The 1% fee works like this. The base listing fee is 1.5%. It’s 1% if you use Redfin to buy a house within one year (you are credited that .5% at the closing of the 2nd house) lastly Redfin buyer agency agreement now reads 2.75-3% stating that many sellers will cover this. In my market most sellers are offering 2.5% so the buyer is going to have to cover that .25-.5%.
Source I work at Redfin.
CEO got a big mouth not good
Posting the commissions are gone but sellers paying the buyer’s agent commissions isn’t going away
I have the same read and been holding the stock for some time. Redfin is poised for efficiency. It’s the uber of real estate
I ain’t readin allat. It’s priced in.
“As seller […] why would I hire an agent for 2.5% fee? Isn’t that more than twice as expensive?”
Because the 2.5% agent will work harder to get you the highest offer. If they’re getting paid less than half their normal rate they aren’t gonna give a shit about selling your house. The better question is why anyone would pay a buyers agent 3%. The answer to this is the same as it’s always been: it’s a bribe to get them to push the buyer into accepting the seller’s offer
How do you use redfin if i want to sell my house? Never sold a home before but seems like a good idea to avoid paying a real estate agent commission.
I own some. My concern is dilution soon.
They’re long beyond a billy in the red and they’re not making money still
1% fee has always been in place for Redfin. Game changer is buyers now have to pay fee. If you want exposure to housing “tech” buy Zillow.