Redfin and Opendoor, two prominent tech-powered real estate companies, announced on Thursday that they are joining forces to cover a wider range of markets.
Home sellers in Phoenix and Atlanta will now be able to request an Opendoor offer using Redfin’s mobile app or website. While discount-brokerage Redfin offers its own iBuyer services with RedfinNow, the collaboration with Opendoor will help the company reach clients in markets where the program is not currently offered. Redfin will continue expanding its RedfinNow offerings.
“Most sellers want to compare the experience of an on-demand cash offer to a brokered sale and want to understand the costs and benefits of each option, so they can choose the service that meets their needs,” a Redfin spokesperson told RISMedia. “This partnership allows Redfin and Opendoor to offer more choices to more consumers. We are bringing together the reach of the most visited online brokerage with the scale of the largest iBuyer service to create a new consumer experience. We’re excited about the partnership.”
iBuyer companies look to capitalize on consumers who prefer to accept a reduced instant offer and sell more quickly instead of putting their home on the market and waiting for a sale. With the new partnership, Redfin now offers iBuyer services in the Inland Empire, Los Angeles, San Diego and Orange County, Calif.; Denver, Colo.; Dallas, Texas; and now Phoenix and Atlanta. Redfin will receive a referral fee for each customer who sells to Opendoor through the partnership. Sellers in these markets will still have the option of working with a full-service Redfin agent to list their home on the market for a 1.5 percent listing fee.
“Every homeowner should have a choice between putting a home on the market via a Redfin agent, or taking an instant cash offer,” said Redfin CEO Glenn Kelman in a statement. “No matter how fast RedfinNow expands, there will always be homes we can’t buy, because it’s so hard to match our capabilities and capital with the market’s ups and downs. Just as traditional agents are our partner for brokered sales our own agents can’t handle, Opendoor is our partner for giving customers reliable, competitive offers on homes we ourselves can’t buy.”
“Redfin and Opendoor are bringing together the reach of the most visited online brokerage with the scale of the largest iBuyer service to deliver a comprehensive service for more customers,” said Eric Wu, founder and CEO of Opendoor, in a statement. “Both companies are focused on making the experience of buying and selling a home simple and hassle-free. By working together, we can amplify our efforts and give customers more choice when making one of the biggest financial decisions of their lives.”