Redfin is expanding its flipping business.
The brokerage service announced that it is deepening its investment in Redfin Now, the service in which the company buys homes directly from sellers. Structured in the Inland Empire as “an experiment” in January 2017, Redfin Now has since expanded to San Diego, and recently into Orange County.
How It Works
Through Redfin Now, the company says that homeowners can get an offer within 48 hours of a Redfin Now buyer visiting the home, and receive their cash in as few as seven days of accepting the offer. Redfin Now then prepares the home for market and Redfin lists it online, with the goal of selling it at a profit.
“Most institutional buyers don’t have the online audience we do, and pure websites don’t have as much operational expertise,” said Redfin CEO Glenn Kelman. “As more and more homeowners look to choose between an immediate sale and a brokered sale, offering both choices ourselves is how we can be the first company homeowners call when considering a move.”
Redfin Now reports purchases increasing from $6 million in the first quarter to $17 million in the second quarter of 2017, and sales increasing from $3 million to $9 million. All 17 of the Redfin Now purchases in the first quarter have been sold, and for a higher price than the company paid for it.
Quinn Hawkins, who led the Redfin Now experiment from the start, is continuing as the head of Redfin Now.
“We are eager to build on our strong second-quarter growth and introduce the service to even more home sellers in the months to come,” Hawkins said.
Redfin aims to position itself to buy and sell homes more efficiently than other companies offering similar services. Software engineers will build technology to support the renovation, promotion and sale of Redfin Now homes. Redfin Now is slated to launch in two additional markets by the end of the year, and a few more in 2019.
Redfin was founded by software engineers, and is now in more than 80 major metro areas across the U.S.