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

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.

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

Bye Felicia 🤭

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

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

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

Now that markets are shifting, I can understand why.

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

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

Yes.  Can't say I'm shocked.

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.

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

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

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.

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.

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.  

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

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.  

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

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. 

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.

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

It sounds like I-Buying isn’t that Profitable

I heard they were laying off. 

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.