Redfin

This article is about real estate website. For Redfin perch, see European perch. For South African redfin barbs, see Pseudobarbus and Barbus.
Redfin Corporation
Company typePublic
IndustryReal estate
Founded2004; 20 years ago (2004)
Seattle, Washington, U.S.
Founders
  • David Eraker
  • Michael Dougherty
  • David Selinger
Headquarters
Seattle, Washington
,
U.S.
Area served
100+ markets in the United States and Canada
Key people
Glenn Kelman (CEO)
Bridget Frey (CTO)
Chris Nielsen (CFO)
ServicesReal estate agent
Broker
Mortgage origination
RevenueDecrease US$976 million (2023)
Increase US$−218 million (2023)
Increase US$−130 million (2023)
Total assetsDecrease US$1.153 billion (2023)
Total equityDecrease US$2 million (2023)
Number of employees
4,693 (December 2023)
SubsidiariesRentPath
Bay Equity Home Loans
Title Forward Settlement Solutions
Websiteredfin.com
Footnotes / references
[1]
Redfin headquarters are in the Hill7 Building, in South Lake Union, Seattle

Redfin Corporation, based in Seattle, provides residential real estate brokerage and mortgage origination services. The company operates in more than 100 markets in the United States and Canada.[1] In 2023, the company had a 0.76% market share in the United States by number of units sold and had an average of 1,776 lead agents.[1]

History

Redfin was founded in 2004 by David Eraker, Michael Dougherty, and David Selinger. Eraker had dropped out of medical school at the University of Washington for a career in software design and Dougherty received degrees in electrical engineering and international studies from Yale University.[2][3] David Selinger, an alumnus of Stanford University who had previously led the research and development arm of Amazon's data mining and personalization team, joined Redfin as the third founder and CTO. Selinger helped build Redfin's mapping and real estate data analytics engine.[4]

In January 2006, Redfin named Glenn Kelman as CEO.[5] The company's website began to show available homes on an interactive map in 2007.[6]

In 2012, Redfin began an automatic agent rating system. After it drew criticism for using inaccurate data, the system was discontinued.[7]

In June 2017, the company began Redfin Now, a home flipping division.[8]

On July 28, 2017, Redfin became a public company via an initial public offering, raising $138 million.[9]

In June 2019, Redfin began allowing buyers to submit offers on homes listed by Redfin's selling agents without using a buyer's agent.[10] A month later, the company partnered with Opendoor, whereby visitors to the Redfin website can request an offer to buy their houses from Opendoor.[11]

In June 2022, the company announced layoffs of 8% of its staff.[12]

In November 2022, the company announced additional layoffs of 862 people, or 13% of its staff, and the wind down of its Redfin Now home flipping unit.[13]

Acquisitions

Date Acquired Description Cost Source
October 2014 Walk Score Analysis and apartment search tool N/A [14][15]
April 2021 RentPath Owner of Apartment Guide, Rent.com, Lovely, and Rentals.com $608 million [16]
January 2022 Bay Equity Home Loans Mortgage lender $137.8 million [17][18]

Fines and litigation

In May 2007, Redfin was fined $50,000 by the Northwest Multiple Listing Service, and was forced to shut down reviews of homes on the market on its website, prohibited under multiple listing service rules.[19]

In November 2020, a class-action lawsuit by several fair housing organizations accused Redfin of violating the Fair Housing Act by offering fewer services to homebuyers and sellers in minority communities and not offering to sell lower-priced homes because of the lower profits on such sales.[20][21][22] In 2022, the company paid $4 million to settle the lawsuit, changed its policies, and implemented a new internal monitoring system.[23][24]

Awards

In July 2006, Inman News awarded Redfin the Innovator Award for the Most Innovative Business Model.[25]

In May 2010, Redfin won the Seattle 2.0 award for "Best Startup".[26]

In October 2012, Redfin was named one of The DIGITAL 100: World's Most Valuable Private Tech Companies by Business Insider.[27]

In July 2013, Inman News awarded Redfin an award for "Most Innovative Brokerage or Franchise".[28]

In June 2014, Seattle Business magazine recognized Redfin as the best company to work for in Seattle in the Large Companies category.[29]

In December 2019, Redfin was named one of the top tech companies to work for in Seattle by Hired.com.[30]

See also

References

  1. ^ a b c "Redfin Corporation 2023 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. February 27, 2024.
  2. ^ Rhodes, Elizabeth (September 26, 2004). "A sit-down, flyby real-estate overview". The Seattle Times.
  3. ^ Stone, Brad (March 7, 2013). "Why Redfin, Zillow and Trulia Haven't Killed Off Real Estate Brokers". Bloomberg News.
  4. ^ "David Selinger". Entrepreneur.
  5. ^ "Redfin raises $1.25M, names new CEO". American City Business Journals. January 9, 2006.
  6. ^ Lee, Timothy B. (August 10, 2015). "Redfin set out to change real estate. Then real estate changed Redfin". Vox Media.
  7. ^ Carrns, Ann (May 1, 2012). "New Battle on Providing Real Estate Agent Performance Data". The New York Times.
  8. ^ SOPER, TAYLOR (June 30, 2017). "Redfin testing 'Redfin Now' service that lets it buy and resell homes directly with customers". GeekWire.
  9. ^ Olick, Diana; Balakrishnan, Anita (July 28, 2017). "Real estate start-up Redfin surges over 44% in IPO: 'We are the Apple of real estate,' CEO says". CNBC.
  10. ^ Zafar, Nina (June 4, 2019). "Redfin's newest online tool cuts out the buyer's agent". The Washington Post.
  11. ^ Clark, Patrick (July 11, 2019). "Opendoor Partners With Redfin to Expand Home-Flipping Reach". Bloomberg News.
  12. ^ Saric, Ivana (June 14, 2022). "Redfin laying off 8% of its staff". Axios.
  13. ^ BEK, NATE (November 9, 2022). "Redfin to cut 13% of workforce and shut down home-flipping business RedfinNow". GeekWire.
  14. ^ "Redfin Acquires Walk Score" (Press release). Business Wire. October 22, 2014.
  15. ^ COOK, JOHN (October 22, 2014). "Redfin buys Walk Score, marking first acquisition in company history". GeekWire.
  16. ^ "Redfin Completes Acquisition of RentPath for $608 Million" (Press release). PR Newswire. April 5, 2021.
  17. ^ "Redfin Completes Acquisition of Bay Equity Home Loans for $137.8 Million" (Press release). PR Newswire. April 4, 2022.
  18. ^ Escobar, Sabrina (January 12, 2022). "Redfin's Purchase of Bay Equity Home Loans Is 'Positive Step'". Barron's.
  19. ^ Cook, John (May 17, 2007). "Redfin fined $50,000, shuts down home reviews". Seattle Post-Intelligencer.
  20. ^ Johnson, Gene (October 31, 2020). "Fair housing groups sue Redfin with allegations of 'redlining' minority communities". USA Today. Associated Press.
  21. ^ Lerner, Michele (November 2, 2020). "Housing groups sue Redfin, alleging federal discrimination violations". The Washington Post.
  22. ^ "A Progressive Real Estate Firm Faces Accusations of Discrimination". Bloomberg News. January 18, 2022.
  23. ^ BISHOP, TODD (May 2, 2022). "Redfin will implement internal fair housing monitoring system in $4M legal settlement". GeekWire.
  24. ^ "Redfin settles lawsuit alleging housing discrimination". Daily Record. Associated Press. April 29, 2022.
  25. ^ "Redfin Wins Innovator of the Year Award From Inman News at Real Estate Connect" (Press release). PR Web. July 30, 2006. Archived from the original on August 10, 2006.
  26. ^ Huang, Gregory T. (May 20, 2010). "Redfin, Bonanzle, TisBest Win Seattle 2.0 Awards". Xconomy.
  27. ^ Shontell, Alyson (October 3, 2012). "The 2012 Digital 100: The Complete List 1-100". Business Insider.
  28. ^ "Announcing: 2013 Innovator Awards winners". Bradley Inman. July 12, 2013.
  29. ^ Horton, Nick (July 2014). "100 Best Companies to Work For 2014: Large Companies". Seattle Business Magazine.
  30. ^ Pratini, Napala (December 13, 2019). "5 Top Employers in Seattle According to Tech Workers". Hired.com.
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