Another discount real estate model going down…next up Redfin

[njtosd]

Read on, my friend. Later in the article you will find the following paragraph:

“The goal is to change the perception of the company — for now, the company has no plans to reduce the commission rebates it offers to buyers. Although ZipRealty advertises itself as willing to offer commission discounts to sellers, those discounts are negotiated on a case-by-case basis.”

Again, as I mentioned in my earlier post – the article indicates that the goal is to change the perception of the company. They have announced no plans to change their actual business model.

I think the more interesting data is that Redfin has not gone public and has not received any financing since 2007. That either means that they (a) aren’t successful enough to attract additional financing, or (b) they don’t need it.

[scaredyclassic]

Kind of like personal injury law. 33 percent is Standard. You’d think lawyers might compete. But efffff It it’s not worth getting involved in the madness w the risk of no payoff for much less. Probably. Kinda like real estate. The poor guy who had to deal w me for a year. What a freaking nightmare.

[scaredyclassic]

Kind of like personal injury law. 33 percent is Standard. You’d think lawyers might compete. But efffff It it’s not worth getting involved in the madness w the risk of no payoff for much less. Probably. Kinda like real estate. The poor guy who had to deal w me for a year. What a freaking nightmare.

[scaredyclassic]

Kind of like personal injury law. 33 percent is Standard. You’d think lawyers might compete. But efffff It it’s not worth getting involved in the madness w the risk of no payoff for much less. Probably. Kinda like real estate. The poor guy who had to deal w me for a year. What a freaking nightmare.

[scaredyclassic]

Kind of like personal injury law. 33 percent is Standard. You’d think lawyers might compete. But efffff It it’s not worth getting involved in the madness w the risk of no payoff for much less. Probably. Kinda like real estate. The poor guy who had to deal w me for a year. What a freaking nightmare.

[scaredyclassic]

Kind of like personal injury law. 33 percent is Standard. You’d think lawyers might compete. But efffff It it’s not worth getting involved in the madness w the risk of no payoff for much less. Probably. Kinda like real estate. The poor guy who had to deal w me for a year. What a freaking nightmare.

[sdrealtor]

Yeah I saw that but I’m sure you are smart enough to read between the lines as I am. They lost $5.1 in the 3rd Qtr which should be one of their most profitable along with the 2nd qtr. That annualizes to over $20M operating loss. They are switching agents to an independent contractor model which is a big departure from their model and the one employed by traditional brokerages. The writing is on the wall and they will be chaging things soon enough.

Its analogous to when a company gets sold and they keep the management for a couple a years before dumping them. They have lots of revenue and want to keep that up so they dont want to risk changing the discounting aspect just yet. My guess is the have an investment bank looking for buyers as we speak.

[sdrealtor]

Yeah I saw that but I’m sure you are smart enough to read between the lines as I am. They lost $5.1 in the 3rd Qtr which should be one of their most profitable along with the 2nd qtr. That annualizes to over $20M operating loss. They are switching agents to an independent contractor model which is a big departure from their model and the one employed by traditional brokerages. The writing is on the wall and they will be chaging things soon enough.

Its analogous to when a company gets sold and they keep the management for a couple a years before dumping them. They have lots of revenue and want to keep that up so they dont want to risk changing the discounting aspect just yet. My guess is the have an investment bank looking for buyers as we speak.

[sdrealtor]

Yeah I saw that but I’m sure you are smart enough to read between the lines as I am. They lost $5.1 in the 3rd Qtr which should be one of their most profitable along with the 2nd qtr. That annualizes to over $20M operating loss. They are switching agents to an independent contractor model which is a big departure from their model and the one employed by traditional brokerages. The writing is on the wall and they will be chaging things soon enough.

Its analogous to when a company gets sold and they keep the management for a couple a years before dumping them. They have lots of revenue and want to keep that up so they dont want to risk changing the discounting aspect just yet. My guess is the have an investment bank looking for buyers as we speak.

[sdrealtor]

Yeah I saw that but I’m sure you are smart enough to read between the lines as I am. They lost $5.1 in the 3rd Qtr which should be one of their most profitable along with the 2nd qtr. That annualizes to over $20M operating loss. They are switching agents to an independent contractor model which is a big departure from their model and the one employed by traditional brokerages. The writing is on the wall and they will be chaging things soon enough.

Its analogous to when a company gets sold and they keep the management for a couple a years before dumping them. They have lots of revenue and want to keep that up so they dont want to risk changing the discounting aspect just yet. My guess is the have an investment bank looking for buyers as we speak.

[sdrealtor]

Yeah I saw that but I’m sure you are smart enough to read between the lines as I am. They lost $5.1 in the 3rd Qtr which should be one of their most profitable along with the 2nd qtr. That annualizes to over $20M operating loss. They are switching agents to an independent contractor model which is a big departure from their model and the one employed by traditional brokerages. The writing is on the wall and they will be chaging things soon enough.

Its analogous to when a company gets sold and they keep the management for a couple a years before dumping them. They have lots of revenue and want to keep that up so they dont want to risk changing the discounting aspect just yet. My guess is the have an investment bank looking for buyers as we speak.

[njtosd]

Go back and read my earlier post. What I said was “I don’t see anything in the article saying that they are moving away from the discount model.” Which is true – there isn’t anything in the article that says that they plan to change their discount policy. Your conjecture is reasonable, and I don’t doubt the other facts that you’ve pointed to. I’m just saying that this article doesn’t lend support to your position.

[njtosd]

Go back and read my earlier post. What I said was “I don’t see anything in the article saying that they are moving away from the discount model.” Which is true – there isn’t anything in the article that says that they plan to change their discount policy. Your conjecture is reasonable, and I don’t doubt the other facts that you’ve pointed to. I’m just saying that this article doesn’t lend support to your position.

[njtosd]

Go back and read my earlier post. What I said was “I don’t see anything in the article saying that they are moving away from the discount model.” Which is true – there isn’t anything in the article that says that they plan to change their discount policy. Your conjecture is reasonable, and I don’t doubt the other facts that you’ve pointed to. I’m just saying that this article doesn’t lend support to your position.

[njtosd]

Go back and read my earlier post. What I said was “I don’t see anything in the article saying that they are moving away from the discount model.” Which is true – there isn’t anything in the article that says that they plan to change their discount policy. Your conjecture is reasonable, and I don’t doubt the other facts that you’ve pointed to. I’m just saying that this article doesn’t lend support to your position.

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