John Juarez, ePRO, SRES, GRI, PMN (The Medford Real Estate Team)

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Rainmaker
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Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

 Yes, Redfin has suffered a major drop in valuation from a high in the $90s/per share in February '21 to a close today of just $3.27/per share. A true disruptor, a disruptor of the pocketbooks of many investors.

 

Wrote a bit about Opendoor & Zillow a few days ago (Nov 6th) in response to a question about Opendoor...

 

"Using technology to buy and sell", I guess their proprietary technology Failed! Further proof that the iBuyer model isn't bulletproof.

 

No fear, just stay clear of ticker "OPEN" on the Nasdaq. It's not a good investment, it's more of a gamble. In February '21 it had a high of about $28./per share, it's now down to about the price of a Two Buck Chuck at Trader Joe's.

 

Curious about Zillow? In February '21 it reached a high of a little more than $161./per share, this past Friday it had a closing price of $32.52/per share.

Nov 06, 2022 05:00 PM
Nov 09, 2022 04:42 PM
Ambassador
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Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

Yeah, that gimmicky business model failed along with Z's and OD's. They are not leading anywhere, except for loss of revenue!

Nov 09, 2022 06:22 PM
Rainmaker
1,395,018
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

There are so many unsustainable business models out there and in the last 5 years, especially the next 2, we'll see them succumb to the laws of economics.

Nov 10, 2022 07:49 AM
Rainmaker
755,806
Steve Higgins
RE/MAX Kelowna - Kelowna, BC

No, I haven't heard, they don't have a big presence up here. Thanks for sharing John. 

Nov 09, 2022 05:59 PM
Rainmaker
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Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Bye Felicia 🤭

Nov 10, 2022 04:03 AM
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Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Yep I saw that this morning. Not a big surprise.

Nov 09, 2022 09:58 PM
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Anna Banana Kruchten Phoenix Broker
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

What Pete Xavier said........

Nov 09, 2022 08:04 PM
Rainmaker
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Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

Without reading the sub-comment I assumed the disrupt-er you speak of would be inflation John Juarez 

Nov 10, 2022 06:53 AM
Rainmaker
5,492,799
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Now that markets are shifting, I can understand why.

Nov 10, 2022 05:12 AM
Rainmaker
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John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Hello John Juarez I am not aware of Redfin exiting the iBuyer business.

Nov 09, 2022 08:29 PM
Rainmaker
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Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

What goes up must go down if the business plan is not sound!

Nov 10, 2022 04:16 AM
Rainmaker
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Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Yes.  Can't say I'm shocked.

Nov 09, 2022 11:22 PM
Rainmaker
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Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Hi John... I read about that just earlier today. This was not a sustainable business model with the way iBuyers were throwing money at home sellers.

Nov 10, 2022 12:45 PM
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Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Seems more like the "Disruptor" business model got disrupted. 

Nov 10, 2022 09:38 AM
Rainmaker
1,093,046
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

In the case of Redfin and other iBuyers, Bob "RealMan" Timm, it is deflation in the value of the homes they purchased.

Nov 10, 2022 07:11 AM
Rainmaker
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Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Saw that .... not shocked another 'disruptor' bit the bullet.

Nov 10, 2022 05:36 AM
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Don Baker
Lane Realty - Eatonton, GA
Lake Sinclair Specialist

back in the late 90s when my wife was building a website and the developer wanted to put "make an offer" she laughed and said.... no, people want to sit on the couch before the buy the house.  I really never thought of redfin as a disrupter, just a fad.

Nov 10, 2022 07:12 AM
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Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

It has not been a great year for ibuyers, all of them seem to be paying the penalty that all investors pay for buying for a price that is too high.

Nov 10, 2022 04:19 AM
Rainmaker
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Peter Mohylsky
PMI. Destin - Miramar Beach, FL

It does seem that layoff's are in the air around the business.  Go figure.  every successful business starts off with a well developed business plan that is not dependent upon the rise and fall of the market.  

Nov 10, 2022 10:51 AM
Rainmaker
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Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

They represent statistically a segment of agents/businesses who just give-up or walk away not an uncommon behavior for irresponsible Golddiggers. The true pro finishes what they start, never gives up and is rid of excuses too

Nov 10, 2022 07:20 AM
Rainmaker
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Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

By now these guesstimats, prices seem to suggest there is a big disconnect in reality.  With high interest and longer marketing time, it is debatable the flip is even profitable.  

Nov 20, 2022 08:04 AM
Rainmaker
429,794
Cathy Criado
Criado Realty - San Antonio, TX
Making Real Estate Profitable

I'm not surprised. People thought Redfin would revolutionize the industry. Apparently not. Thanks for sharing! - Happy Thanksgiving!!

 

 

Nov 24, 2022 04:42 AM
Rainer
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Adam Feinberg
Elegran - Manhattan, NY
NYC Condo, Co-op, and Townhouse Advisor

All of the iBuyer programs were under-estimating risk, which I had pointed out to my team a number of years back when they were all launching these programs. 

 

As to Redfin's partnership program- my firm had partnered with them for NYC nearly 2 years ago to help extend their reach. It's no up front cost with a success fee for a closed deal. My firm had structured the success fee- so that a closed Redfin lead cost the agents no more than it would cost from an internally firm provided lead.  I was ok with that part. The part that I couldn't handle was their policy of needing to respond to leads within 5 minutes of receipt. If they had adjusted their system accordingly- I would have been fine with their policy. They left the parameters the same as what they have for the rest of the nation- and that doesn't work so well here. There are a lot of agents in this town that earn their entire annual income on resales in 1 or 2 buildings...or within a specific neighborhood. Instead they have every lead within 20 miles of the city having me jump like one of Pavlov's dogs in order to meet their requirement when the text message rolls in- including NJ leads- and I am not even licensed for NJ- and even 1 lead for PA (which is at 60-90 minutes to the border even with a car). Most of my territory is walkable from my home (or just a few stops on the subway) so I was tearing my hair out trying to keep up with the Redfin process- only to find out most of those leads were not part of my sales territory- but I still needed to run over to my phone constantly to verify that.   

 

Perhaps the process is smoother in areas where agents typically own cars- but most of us don't - but even if I had a car, it's not practical to drive on a busy day constantly looking for a parking space here. 

I gave Redfin my feedback, and they were not prepared to make adjustments to their systems to accommodate the agents working in NYC- which operates differently in many ways from the rest of the nation. The buyer leads that were coming from Redfin were mostly entry level buyers so it wasn't exactly a loss for me when I opted out of their referral program. The crazy part was when my firm partnered with them, they were scratching their heads wondering why it was so hard to retain good partner agents...well I gave them the reasons- but they weren't ready to address the feedback. 

Nov 14, 2022 08:14 PM
Rainmaker
1,407,789
Gary Frimann, CRS, GRI, SRES
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker

Check out COMP and EXPI and their stock prices.  I suspect smart investors are getting out of real estate franchise stocks and getting into, perhaps, home improvement stocks.

Nov 13, 2022 07:35 PM
Rainmaker
717,951
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

The so called disrupters are like Wac-a-mole.  One gets knocked down and another one pops up.

Nov 12, 2022 02:54 PM
Rainmaker
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Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

It sounds like I-Buying isn’t that Profitable

Nov 11, 2022 01:35 PM
Rainmaker
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Carla Freund
Keller Williams Preferred Realty - Raleigh, NC
Carolina Life RealEstate & Relocation 919-602-8489

I heard they were laying off. 

Nov 11, 2022 06:59 AM
Ambassador
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Emily Medvec
eXp Realty LLC - Santa Fe, NM
Broker | Realtor | Serving Santa Fe & Northern NM

ibuyer strategy, whether Zillow or Opendoor or Redfin is not sustainable in a volatile market. Redfin still has estimated that its inventory of homes in the RedfinNow program was around $265 million at the end of October. It expects to own less than $85 million by the end of January 2023 and eliminate all remaining inventory by the second quarter of 2023. The bottom line is at what price will this inventory reach the market and impact prices in those local markets. At the same time, both Redfin and Zillow have customer eyeballs. IMO there is a lot of moving parts and I do not celebrate the loss of nearly 900 employees losing their jobs. 

Nov 11, 2022 06:31 AM