Real estate brokerage Redfin and home trade-in startup Opendoor are teaming up.
Now, if you’re selling a home in Atlanta or Phoenix and go on Redfin’s site, you’ll see an option to request an offer to have Opendoor buy your home instead of putting it on the market.
INSIDE REDFIN AND OPENDOOR
Redfin was already buying homes on its own, so why partner with Opendoor? Redfin said it’s still committed to RedfinNow, its own homebuying service.
This quote from Redfin CEO Glen Kelman offers an answer. Basically, not all markets have economics that work for RedfinNow to be profitable.
By partnering with Opendoor, who has a VC money runway to figure out how to make those numbers work, they can get exposure to those markets.
“Every homeowner should have a choice between putting a home on the market via a Redfin agent, or taking an instant cash offer. No matter how fast RedfinNow expands, there will always be homes we can’t buy, because it’s so hard to match our capabilities and capital with the market’s ups and downs. Just as traditional agents are our partner for brokered sales our own agents can’t handle, Opendoor is our partner for giving customers reliable, competitive offers on homes we ourselves can’t buy.”
This partnership also gives Opendoor access to Redfin’s scale and marketing machine in Phoenix and Atlanta. Redfin gets paid on every sale it sends to Opendoor, too.
It’s a win for both companies, and a win for consumers. Here’s what it looks like on Redfin’s site:
OKAY, SO WHY DO I CARE?
Even if you don’t plan on selling your home directly to Redfin, Opendoor, Zillow, Knock, or one of the other companies offering this service, you can use the offers to get an idea of your home’s value. And, you can use those offers as leverage with agents and buyers.
It’s a win for you in a larger sense, too. As the real estate industry figures out the tech and customer experience game, we’re getting closer to an easier homebuying and selling experience that’s closer to buying a car than pulling teeth.
The Basis Point on one-stop homebuying, selling and financing