Redfin IPO: What Investors Need to Know
Would-be homebuyers and real estate junkies have an upcoming IPO all their own. Redfin, the property search service, is scheduled to go public in the next few days. By listing its shares, Redfin is moving into a neighborhood that already has a prominent resident, Zillow (NASDAQ: Z)(NASDAQ: ZG). Here's a look at Redfin's performance, and a brief glance at how the company compares with Zillow.
Redfin is an online real estate brokerage that's become a known player in its business through an emphasis on technology. The company claims it invented map-based real estate search, a tool that has become one of the defining features of its core website. Its listings are fairly comprehensive, as it's plugged into the database of all local multiple listing services in its 84 markets around the country.
This combination of automated services and extensive listings allows Redfin to shave its brokerage commission fees. The company levies a commission of 1% to 1.5% on the homes sold through its service, compared with the 5% to 6% it says traditional brokerages charge.
Source: Fool.com
