Opendoors enters strategic partnership with rival Redfin

July 14, 2019
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Property listing marketplace, Opendoor, has entered a partnership with Redfin Corp, a now former competitor. The partnership will help both companies reach a larger audience.

Atlanta and Phoenix homeowners who visit Redfin’s website will be offered the option of requesting a cash offer from Opendoor, alongside an opinion on what the home is likely worth on the open market, the companies said in a recent statement. The idea is to let the consumer choose between the convenience of an instant offer and getting more money by listing their home with an agent.

“The main impetus is demand from our customers,” Redfin Chief Executive Officer Glenn Kelman said in an interview. “We realized that almost every listing customer is going to want to compare the net proceeds from an instant offer. RedfinNow, no matter how quickly we expanded, wasn’t going to be able to handle that demand.”

Under the terms of the partnership, Opendoor will buy the house, make minor repairs and put it back on the market, paying Redfin a referral fee. The model, sometimes called iBuying, resembles a algorithm-driven spin on home-flipping. Redfin operates a similar service, called RedfinNow, in seven markets, and plans to keep expanding.

If the partnership with Opendoor is successful, the brokerage could refer some sellers to Opendoor in markets where it also buys homes through RedfinNow, said Kelman.

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July 14, 2019

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