The world of Real Estate is lucrative! Online sources state that the average Real Estate appreciation is between 3-5% depending on the area (seems on par or above-average with U.S. inflation numbers). Is Redfin revolutionizing the industry of Real Estate? I challenge you to research and post below. My first approach to any topic is to explore the actual product, its infrastructure, and what it can do for me that is different from others like it. Above is the website for Redfin … explore!
How I see it - Redfin is valued around $7 billion right now, even after surging some %400 this year. That is a paltry sum for something that could shake up the entire real estate market system that hasn’t changed in decades.
Real estate’s current system relies on exorbitant (and opaque/uncompetitive) fees charged by agents which Redfin is trying to exploit by offering a lower price (i.e. half the commission of the average rate) AND by offering a better service. This is the same model so many companies have used to disrupt, i.e. Uber offering lower prices AND a better product. The key is having both, and I think this sector is ripe for growth.
The harder argument is whether Redfin will be the one to be the market leader (and thus the advantages of scale for higher margins/profits), compared to its competitors Zillow/etc…
So how high could Redfin go? 30 billion? 40 billion?
I could see that range, yea.
I looked into them, I’m convinced. Bought some today when they dropped a little. Wish i had bought earlier ugh haha