BrokerageTechnology

Redfin’s 1% listing fee: Coming to a market near you

High-tech brokerage makes profit in second quarter but expects to lose money for the full year

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Glenn Kelman In its first earnings report since going public in July, Redfin posted strong revenue growth, as the high-tech brokerage's website gained steam and its market share "accelerated." The brokerage said it planned to roll out its reduced listing fee of 1 percent to cover the vast majority of its projected homeseller clients (down from 1.5 percent) by the year's end, and reported modest progress with its new mortgage arm. Redfin also revealed that it's still trying to determine whether to make Redfin Now -- its new iBuyer that could compete with Opendoor -- a lasting part of its business. Revenue, expenses, profit, market share and traffic Redfin grew revenue by 35 percent to $104.9 million in the second quarter compared to the same quarter in 2016. The brokerage squeezed out a profit of $4.3 million in the second quarter, but Redfin CEO Glenn Kelman attributed that result to seasonal conditions, stating in an earnings call that "we expect to lose money for the f...