Opendoor and Redfin want to ramp up instant homebuying through new partnership

Opendoor hopes to gain access to Redfin’s 31 million monthly visitors

Jul.July 12, 2019 09:30 AM
Redfin CEO Glenn Kelman and Opendoor CEO Eric Wu (Credit: Redfin and Resolute Ventures)

Redfin CEO Glenn Kelman and Opendoor CEO Eric Wu (Credit: Redfin and Resolute Ventures)

Opendoor, the $3.8 billion SoftBank-backed instant home buyer, and its competitor Redfin Corp. are teaming up to gain an edge in the new home-selling segment.

The new partnership means Opendoor can get a piece of Redfin’s web traffic — 31 million monthly visitors in just the first quarter, Bloomberg reported. Homeowners in Atlanta and Phoenix who visit Redfin’s site will be given the option of requesting a cash offer from Opendoor, which buys and flips homes after minor repairs, or get an opinion of what a home could go for on the open market. Opendoor will pay Redfin a referral fee.

The move comes after RE/MAX and Redfin joined forces in March. Redfin, which already has its own iBuying division, would be willing to expand the Opendoor partnership into markets it’s already in, according to CEO Glenn Kelman.

Opendoor has been popular with venture capital firms, raking in $1.3 billion in equity from such investors as SoftBank Group’s $100 billion Vision Fund. The partnership further establishes a business model that Opendoor pioneered in 2014 — as it expands into more than 20 markets and established real estate firms including firms Zillow and Keller Williams, the nation’s biggest franchise brokerage, follow suit.

Earlier this month, it was reported that Opendoor was laying off 50 of its roughly 1,300 employees, and asked between 200 and 300 employees to relocate to its base in Phoenix. It follows turnover in the startup’s C-suite. [Bloomberg] — Georgia Kromrei

Related Articles

There Is No Escaping the Automation of Commercial Real Estate Brokerages

There Is No Escaping the Automation of Commercial Real Estate Brokerages


The Property Valuation Reckoning is Imminent

Duke Long and Poshtel International CEO Morten Lund

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

New York City Councilman Donovan Richards sponsored a bill that now requires the city’s affordable housing plan to actively address racial segregation. (Credit: Getty Images and iStock)

Racial inequality in homeownership across US is sharpest in New York: report

Eric Wu, co-founder and CEO of Opendoor

Aggressive iBuyer Opendoor acquires title and escrow company

Fredrik Eklund (left), Julia Spillman and John Gomes (Photo by Guerin Blask)

Here are 5 takeaways from TRD’s deep dive into Eklund-Gomes’ national expansion

137 Saxon Mist Drive (Credit: Scoop Nashville and Benchmark)137 Saxon Mist Drive (Credit: Scoop Nashville and Benchmark)

Nashville broker posts oral sex selfie alongside kitchen and pool listing pics

From left: Paul Manafort with Trump Tower, Jeffrey Epstein, and Bernie Madoff with 133 East 64th Street (Credit: Getty Images, CityRealty, and Wikipedia)

How do brokers get listings from the Department of Justice?