Hi I am Jason, a Realtor from Keller Williams Constant. I specialized in Columbus, Dayton, Cincinnati, and Westerville.
02/18/2025
Why Is Redfin Struggling Despite the Booming U.S. Housing Market?
Casual discussion time. As someone in the real estate industry, I enjoy studying real estate tech companies. I previously wrote about Redfin and felt it was time for an update.
Anyone who has bought a home in the U.S. has likely used Redfin.
is a real estate technology company in the U.S., offering both a website and an app. It consolidates all listed properties nationwide, so instead of visiting multiple brokerage websites, buyers can find all listings in one place via Redfin’s app.
In Asia, one of the biggest transparency issues in real estate is property listings—many homes are only available through specific brokerages, with no centralized platform. So when Redfin emerged in the U.S., I thought it could revolutionize the real estate industry.
The Beginnings of Redfin
Founded in 2004, Redfin is headquartered in Seattle. With ambitions to disrupt the traditional real estate transaction model, the company went public on NASDAQ in August 2017 at an IPO price of $15 per share. It surged 44.7% on its first day to $21.70, reflecting the market’s high expectations.
Redfin’s vision was to integrate online media with brokerage services to reduce transaction costs for buyers and sellers. The idea was for customers to complete most of the process online, only hiring an agent at the final stage to review the deal—systematizing and automating real estate transactions.
From Ideal to Reality: The Challenges Behind the Stock Price
However, from its IPO high to today, Redfin’s stock closed yesterday at just $7.95—a mere fraction of its 2021 peak of $90. Additionally, Redfin-listed properties have become increasingly rare in the market.
As someone also in real estate, I’ve reflected deeply on Redfin’s trajectory. While it has certainly made home searching more convenient, it has failed to achieve its original disruptive vision. The reasons behind this are worth exploring.
Resistance from Tradition: Competitors and Business Model Clashes
From the start, Redfin chose to challenge the traditional real estate model by hiring its own agents and working directly with buyers and sellers. While not inherently wrong, this meant it was taking on established real estate brokerages head-on.
Redfin underestimated the expertise of real estate agents. It believed that technology and a large workforce could replace traditional agents. However, many of its agents were inexperienced or part-time, unable to analyze a home’s pros and cons or provide valuable guidance to clients.
The Limitations of a Product-Oriented Mindset: Overlooking Human Interaction
A deeper issue lies in Redfin’s misunderstanding of real estate transactions. The company overemphasized online processes and efficiency, attempting to standardize homebuying while overlooking the importance of human communication in real estate.
Although Redfin later expanded its agent team to offer more offline services, its core philosophy still treated homes as commodities, ignoring the personal and emotional significance of homeownership.
The Challenges of Standardized Operations
Viewing homes as mass-market products is evident in Redfin’s operational strategy. Their workflow is highly standardized, with agents clocking out at 6 PM—making it difficult to get assistance afterward. But the market is dynamic. In a fast-paced seller’s market like Seattle, offers often need to be submitted late at night. If agents stop working at 6 PM, they can’t keep up.
Redfin’s leadership is based in Seattle, yet it’s surprising that after so many years, they haven’t realized how crucial speed and flexibility are in real estate. Perhaps their company culture values work-life balance, but for buyers, securing the home they want is the top priority.
Additionally, every home is unique, and every buyer has different needs. A rigid, standardized process cannot provide personalized service, ultimately leading to lower customer satisfaction.
AI Limitations: Misaligned Technology Investments
As a real estate tech company, Redfin’s AI applications have also fallen short. Their “Redfin Estimate” tool has long been criticized for its inaccurate valuations, often misleading buyers and sellers. Thankfully, they recently removed this flawed feature.
They also introduced an automatic bidding function, which is laughable. When dealing with multimillion-dollar transactions, buyers consult professionals—no one is simply clicking a button on an app to place an offer.
Redfin needs to realign its AI investments, improving data accuracy and personalized recommendations to truly leverage technology effectively.
Intensifying Market Competition
Redfin’s struggles highlight the fierce competition in the real estate industry. It not only competes with traditional brokerages but also faces challenges from other online platforms like Zillow.
Last year, Redfin introduced a rental platform, merely following in Zillow’s footsteps rather than innovating. So far, it hasn’t performed well. They’ve spent too much time on the wrong initiatives instead of capitalizing on their strengths and developing a strong growth strategy.
People First: The True Value of Real Estate
When Redfin went public in 2017, I had just entered the industry. At the time, there was widespread panic—people feared Redfin would disrupt the entire market.
Fast forward over a decade, and today, no real estate firm considers Redfin a serious competitor. It’s disappointing to see what could have been a great company lose its edge.
At its core, Redfin’s biggest challenge is its flawed understanding of real estate:
Real estate is not about houses—it’s about people.
Behind every home purchase is a major life decision, a dream, and an emotional investment.
From financial planning to home selection and post-purchase renovations, I spend countless hours consulting with clients. Buying a home isn’t like shopping at Target—you can’t just grab one off the shelf.
Only by truly putting people first, deeply understanding and meeting their needs, can a company carve out a lasting place in this highly competitive industry.
Technology is just a tool. People are the heart of real estate.
Credit to the original author written in Chinese
#美國房市火熱，為什麼房地產科技龍頭公司Redfin的表現卻這麼慘？
閒聊時間。身在房地產行業，我很喜歡研究房地產科技公司，之前寫過一篇Redfin的文章，這次又想來更新一下。
有在美國買過房子的人應該都用過Redfin。
是美國房地產的科技公司，有網頁也有App，他整合了所有美國上市房地產的資訊，讓大家在找房子的時候，不需要到一間一間的房地產經紀公司網站上看，直接在Redfin的App裡面就找到所有的上市房源。
在亞洲買房，最資訊不透明的就是出售的房源，有很多房子只能在特定的房地產經紀公司找到，沒有一個完整的平台。所以當Redfin這間公司在美國出現的時候，我曾經覺得他們可以 #改變整個美國房地產行業。
▋Redfin的開始
Redfin成立於 2004 年，總部就在我們這裡： #西雅圖。抱著顛覆傳統房地產交易模式的雄心壯志，2017 年 8 月，Redfin 在納斯達克上市，發行價為每股 15 美元，首日股價大漲 44.7%，到21.7美元，由此可見市場對Redfin寄予多大的厚望。
Redfin 的願景是 #整合線上媒體和經紀公司，降低買賣雙方的交易成本，讓客戶在線上完成大部分交易，僅在最後階段聘請經紀人審核，從而實現房地產交易的 #系統化 和 #自動化。
▋理想與現實：股價背後的挑戰
然而，從上市時的高光時刻至今，昨天Redfin的股價收盤價只剩7.95 美元，距離2021年股價高點$90美金不到1/10，現在市場上也很少Redfin代理的房源。
同樣在房地產行業的我，對這間公司的發展歷程充滿反思，儘管 Redfin 在一定程度上改變了房地產行業，尋找房源真的方便許多，但它沒有實現最初的顛覆性目標，背後原因是很值得探討的。
▋傳統的阻力：對手與模式之爭
Redfin 從一開始就選擇挑戰房地產行業的傳統，例如僱用自己的經紀人，直接與買家和賣家合作。這種做法無可厚非，但也代表他們選擇直接和傳統的房地產經紀公司對打。
Redfin低估了美國房地產經紀人的專業，以為靠著大量人力和科技支持，可以取代傳統的房地產經紀人，結果是那些剛畢業，非全職的part time人員，在帶看的時候沒能力分析房屋的優缺點，也沒辦法給客戶好的建議和指引。
▋產品思維的局限：忽略人際互動
更深層次的問題在於 Redfin 對房地產交易本質的理解不正確，Redfin 的模式過於強調線上化和效率，試圖將房屋交易流程標準化，忽略了 #人為溝通 在房地產交易中的重要性。
儘管 Redfin 後來意識到購房者需要更多線下服務，增加了經紀人團隊，但其核心理念仍然是將房屋視為一種 #商品，忽略了房屋對於個人和家庭的特殊意義。
▋標準化運營的困境
將房屋視為大眾商品的思路，直接反映在 Redfin 的運營策略上。Redfin 的工作流程相當標準化，經紀人在下午六點後就下班，很難找到人。然而，市場是動態的，尤其像西雅圖這樣的賣方市場，配合房市的步調，有時候必須工作到半夜才來得及送出offer，下午六點以後就收工，根本跟不上這裡的方式步調。Redfin的管理階層都在西雅圖，我很驚訝這麼多年下來他們沒有親自在這個市場中體會到效率的重要，或許他們的公司文化就是希望大家像個大家庭，有生活和工作的平衡，但對於客戶來說，能 #成功買到自己喜歡的房子 才是最重要的。
另外，每棟房屋都是獨一無二的，每個客戶的需求也千差萬別。標準化的流程難以提供個性化的服務，最終導致客戶滿意度下降。
▋AI 應用的短板：技術與需求的錯置
作為一家房地產科技公司，Redfin 在 AI 應用方面的表現也不好。“Redfin Estimate” 估價的準確性一直備受詬病，非常 #誤導房屋的買家和屋主。最近我發現他們把這個愚笨的估價拿掉了，真的是謝天。
另外，他們新推出的 #自動出價 功能也很可笑，動輒數百萬的房產交易，大家都會尋求專業人士的建議，誰會簡單地在 App 上點擊出價？
Redfin 需要修正在 AI 技術投入的方向，提升房屋資訊的準確性和個性化推薦能力，才能真正發揮科技的優勢。
▋市場競爭的壓力：紅海突圍的挑戰
Redfin 的困境反映了房地產市場 #競爭的激烈。Redfin 不僅要與傳統經紀公司競爭，還要面對 Zillow 等其他網路房地產平台的挑戰。他們去年新推出的功能是出租房平台，這點只是跟著Zillow走，連創新都不算，目前做的也不好。我覺得他們花太多時間在錯誤的賽道，沒有把握自己本身的優勢，發展出有效的成長策略。
▋以人為本：房地產的真正價值
Redfin 2014年在納斯達克上市的時候，我剛入行不久，那時候業界一片恐慌，大家都在討論Redfin會對市場帶來多大的改變。
10幾年過去，現在已經沒有房地產經紀公司把Redfin當成競爭對手，很可惜的一間公司。
歸根結底，Redfin 最大的挑戰在於其對房地產本質的理解：房地產不是房屋的事業，而是 #人的事業。 所有的房屋需求，背後都是一個人或是一個家庭的重大生活規劃、夢想和情感寄託。
光是幫客戶買一間房子，在前期的資金安排，中間的房屋選擇，到交屋之後的房屋裝修討論，我要和客戶開非常多的會，整個流程需要相當多的專業，這些客製化的服務不是像在Target買菜，隨便選一選就好。
只有真正 #以人為本，深入理解並滿足客戶的深層次需求，才能在競爭激烈的市場中找到自己的位置。
科技只是工具，人，才是房地產的核心。
