Redfin CEO Glenn Kelman is optimistic about the firm's 2019 partnership with Opendoor, which he expects to allow the brokerage to reach more markets. Redfin currently offers iBuyer services with RedfinNow, but Kelman believes that working with Opendoor will enable it to reach customers in areas where RedfinNow is not available. The company plans to continue expanding its offerings through RedfinNow.
Many sellers want to compare the pros and cons of an on-demand cash offer and a brokered sale. iBuyer companies, however, focus on customers who would rather sell quickly at a lower price than put their home on the market and wait, possibly for several months, in the hope that a buyer will offer a higher amount. In cases in which Redfin can’t buy a house, the new partnership will allow a seller to receive a competitive offer from Opendoor. Redfin will receive a referral fee each time a homeowner sells through Opendoor.
Kelman believes that giving homeowners options is important. The new partnership has brought Redfin’s iBuyer services to several markets in California, along with Denver, Dallas, Phoenix and Atlanta. Sellers in those areas can now choose to work with a full-service Redfin agent and pay a 1.5 percent listing fee or to sell through Opendoor. The partnership will give customers in those major markets an opportunity to choose the home-selling path that best suits their needs.