Redfin stock unveiled today - rdfn +44% 1st day trading

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Real Estate Agent with (408) 425-1601 CA bre 1519182
https://activerain.com/droplet/567Z

                                                                                Sam Shueh

                                                        Silicon Valley Realtor

 

 

Redfin's (RDFN) first few hours of ipo stock performance suggests that investors are thinking RF more like a technology company, not a real estate brokerage. It's trading at a market cap equal to roughly six (6X) times its annual revenue in 2016 which was $256,000,000. I think investors these days are treating internet based companies more like Amazon, Zillow etc. These companies do not really post profit or pay back to investors. Rather any news generate will upset traditional companies how to do business.

 

"If Redfin is a brokerage, making $256 million in revenues have a number of realtors, lawyers who are benefited. Its valuation is nothing to brag about. Re/Max revenue was $176,000,000 and its stocks has a market cap of $1.73 b dollars trading its stocks(Rmax) at $56 almost twice of General Electric which still makes just about anything electric, jet engines etc. globally.

 

Rdfn appeals to tech savy, device comfortable users who prefer to DIY sharing most information often used by realtors only before.  It provides full service, staging, and marketing for sellers and buyers. Their agents are very aggressive and have a large staff supporting agents or co-op realtors. They only operate in cities where home prices are high enough to make business sense and stay away from low margin, rural towns.   

For IPO: Rdfin-ipo-rdfn-stock-trade 

 

I know several realtors who work for RF as salaried realtors-brokers. A couple are lawyers happily getting out of office showing homes and doing contracts. Agents leads have been screened and prequalified and their impressive mls track records suggest that. 

 

This is the kind of company that will impact appreciably how traditional real estate companies do business. Their local presence is now felt and will continue to be so. Oh, boy do I love competition's !!   

 

Reference:

Redfin stocks preparing for IPO

SIlicon Valley Homes -Sam Shueh

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Rainmaker
796,380
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

"Rdfn appeals to tech savy, device comfortable users who prefer to DIY sharing most information often used by realtors only before."

This is a accurate description of the consumer in the emerging sharing economy. RF is not the technology that will change real estate, but it does address the audience that will move massively to the c2c structure for which they await. What I refer to is real estate on a block chain platform.

Jul 28, 2017 02:57 PM #1
Rainmaker
1,056,270
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Annette Lawrence , Palm Harbor, FL 727-420-4041 

You hit the nail.  We have those techies in SF Bay Area (i.e.Silicon Valley) who needs realtors help and opinion but they move only on their terms when they are ready.

Sam Shueh

 

 

 

Jul 28, 2017 03:24 PM #2
Rainmaker
3,324,870
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

Just a very agents here and from the people I have seen use them...they appeal to the cheap of wallet.

Jul 28, 2017 05:13 PM #3
Ambassador
4,302,956
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Sam Shueh - indeed this is a good news for Redfin.

And you are right - the consumers love Redfin - as much as they love Zillow.

Jul 30, 2017 10:28 PM #4
Rainmaker
1,056,270
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

So far looks the investors agree RDRF is like APPLE, second day it went up +12% at $24+. So far so good. A friend who joined the ipo party. I think she is very lucky and felt good. Brand new agent beat 80% experienced local agents-brokers in a few months in terms of sales. 

Jul 31, 2017 07:22 PM #5
Rainmaker
252,769
John Krol
Top Producers Realty, Inc. Krol Group International - Naples, FL
Naples,Luxury Homes,International Buyers / Sellers

I have not seen quality agents from Redfin in my marketplace   The ones I have seen are new and unexperienced.  As they say, you get what you pay for.  I would short the stock.

Aug 03, 2017 06:28 PM #6
Rainmaker
1,056,270
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

John,

You are right.  They do not hire experienced agents. They have a system put in place. Consider their long hours put on the job. Most experienced agents probably do not want to work that way. 

Aug 03, 2017 07:21 PM #7
Rainmaker
1,056,270
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

I do not believe rdfn presents a threat.  Most tradtional agents do not like the idea to reduce commissions as experience matters. Most tradtional agents can fight back by matching RF low commission.  Here is a link outlining the differences: redfin-vs-zillow-which-will-be-the-better

Aug 17, 2017 07:15 AM #9
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Sam Shueh

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