Redfin’s actual business model

Glenn Kelman “So the internet should make real estate agents more productive and it should lower fees, but if there’s rent-seeking behavior, where there are websites between the consumer and the real estate agent that are charging the real estate agent for access to the consumer, you have, on one hand, a benefit, which is that the consumer can see that information, which is good. But on the other, you have a question, which is, is that actually lowering the fee paid by the consumer to the real estate agent, when the agent now has to pay a high fee to meet that consumer in the first place? So I think we should share the data with all the portals. I think we should share the data with all the brokerages. But if you really want to build a more efficient mousetrap, the brokerages have to meet those consumers directly.”

This statement directly contradicts Redfin’s actual business model, specifically 30% referral fees consumer brokering scheme with over 11,000 independent competitors, and a recent #marketallocation scheme with an Opendoor Brokerage.

#pricefixing #antitrust #referralfees #realestate #proptech #MLS #FTCAct #ShermanAct #ibuyer #homebuying #homeselling

Author: Litesand

Antitrust, real estate, e-commerce, fintech, proptech, bigtech

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