BrokerageTechnology

Redfin first brokerage to launch Opendoor competitor

Redfin Now is positioned to become a formidable 'iBuyer,' snatching up property with instant offers

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Redfin is testing a new program that allows homeowners to sell a property to Redfin for as little as a 7 percent commission. The high-tech Seattle-based brokerage revealed the service, called "Redfin Now," in a recent filing for an IPO of $100 million. Its synergies with Redfin’s existing services and technology are extensive and position the program to become a formidable competitor to Opendoor, OfferPad and other "iBuyers," a moniker for platforms using new technology to make offers on homes and close quickly. The announcement marks the first time a traditional brokerage has entered this space, potentially offering a roadmap for other brokerages to do the same. Redfin, which operates in more than 80 markets, is only testing Redfin Now in two locales: California’s Inland Empire and San Diego. But the company, which declined to comment for this story, said in the IPO filing that Redfin might “seek to raise additional capital through equity, equity-linked, or debt fin...