Bloomberg, July 11, 2019: Opendoor partners with Redfin to expand home-flipping reach
Opendoor, which pioneered a new way for homeowners to sell their abodes, is partnering with rival Redfin Corp. in a move meant to help both companies reach more customers in a still evolving segment of the real estate industry.
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 statement Thursday. 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.
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.
The partnership is “about providing sellers a one-stop shop, giving them the best set of choices, so they can make the best decision,” Opendoor CEO Eric Wu said. “The benefit to Opendoor is reach, and the benefit to Redfin is allowing their customers to understand the options.”
