REDFIN

David Eraker, a software engineer, was frustrated with the home-buying process — specifically, the 6% commission that hadn't changed in decades despite the internet making information freely available. He founded Redfin in 2004 with the thesis that technology could make real estate agents more efficient, allowing the brokerage to charge lower commissions and still be profitable.

Glenn Kelman took over as CEO in 2005 and built the company into the largest discount brokerage in the US. The Redfin website and app — with its detailed property listings, Redfin Estimate home values, and 3D walkthroughs — became one of the most-visited real estate sites in America.

Technology-powered real estate brokerage that charges sellers a 1-1.5% listing fee instead of the traditional 2.5-3%. Redfin employs its own agents (salaried, not commission-based) and uses technology to make them more productive.

Revenue comes from brokerage commissions (reduced rates), Redfin Mortgage, and title insurance. The model: replace the traditional 6% real estate commission with technology-driven efficiency.

Redfin.com (real estate search portal with Redfin Estimate home values), Redfin Agents (salaried agents with lower listing fees), Redfin Mortgage (integrated home loans), Title Forward (title and settlement services), and Redfin Rentals (rental search). The 1% listing fee and Redfin Estimate are the signature products.

Integration of the entire real estate transaction. Redfin's strategy is to control every step: finding a home (Redfin.com), getting a mortgage (Redfin Mortgage), closing the deal (Title Forward), and moving in.

Controlling the full stack means capturing revenue at every stage. The NAR commission changes could accelerate adoption of discount brokerages as sellers become more price-conscious.

The National Association of Realtors (NAR) and traditional agent resistance. Discount brokerages threaten the traditional commission structure, and incumbent agents have historically tried to lock out discounters from MLS listings and referral networks.

The 2023 NAR antitrust settlement — which changed how buyer agent commissions work — created both opportunity and uncertainty. Redfin also tried and failed at iBuying (RedfinNow, buying homes directly), losing hundreds of millions before shutting the program down.

Madrona Venture Group, Tiger Global, T. Rowe Price, and Draper Fisher Jurvetson were early investors.

Went public in 2017.