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Yahoo
5 days ago
- Business
- Yahoo
Real estate giants crack down on exclusive 'off-market' home listings in major shift for buyers
Two major real estate marketplaces are making big changes to what home listings can appear on their websites. Zillow and Redfin are both taking aim at listings of homes up for sale that have been publicly marketed prior to being entered into the multiple listing service (MLS), taking steps to bar them from their respective platforms. In April, Zillow unveiled new "listing access standards" for its site under which the real estate marketplace said it will not publish listings if they are "marketed directly to consumers without being listed on the MLS and made widely available where buyers search for homes" within one business day. The company has argued that a listing "marketed to any buyer should be marketed to every buyer" and that consumers "deserve fair access to listings without having to get access behind a velvet rope controlled by any one company." Home Sellers Face Harsh New Reality As Listings Hit Record $69B Value Zillow began sending out notifications of listings in large U.S. markets that don't meet them to agents starting in late May, with each one getting recorded as a violation. Read On The Fox Business App At the end of June, Zillow will bar an agent's third noncompliant listing and any listings by the agent that violate its listing access standards from its platform as well as Trulia "for the life of the listing agreement between that listing broker and seller," according to the company. Its new standards are being implemented "in phases" with a national expansion taking place over the summer. Zillow said the new policy affects all listings of for-sale homes "subject to an exclusive for-sale listing agreement between a broker and a seller." The new listing access standards "are consistent with NAR's Clear Cooperation Policy and reflects our belief in fair access for all," according to the company. The Clear Cooperation Policy mandates the sharing of listings on the MLS within one business day of public marketing. The option for sellers to delay the marketing of their homes on the MLS is slated to come into force in September, the NAR announced earlier this year. There are, however, some exemptions to Zillow's new listing access standards policy. The site will allow home listings that were "only shared among agents within the listing brokerage and the seller has signed a waiver or opt-out form" as well as "delayed marketing" and "coming soon" listings uploaded to the MLS. Additionally, listings of newly built homes marketed by their builder, rental properties and "for sale by owner" homes will not be subject to Zillow's new rule surrounding public marketing, the company said. The New Palm Beach? Jupiter, Fla, Is Drawing Luxury Homebuyers Fellow real estate marketplace Redfin is taking a similar stance. CEO Glenn Kelman said in a mid-April Redfin post that the platform "will not publish any listings that have been publicly marketed before being shared with all real estate websites via the MLS." The company is also calling for the MLS to set up a "coming-soon" designation that "precludes" search sites from displaying the amount of time a home has been on the market and their prices, according to the post. Redfin believes "all buyers should be able to see all listings," Kelman said. The real estate marketplace will start implementing its policy barring listings that were publicly marketed ahead of being shared on the MLS beginning in September, a Redfin spokesperson told FOX Business. "Delayed marketing exempt listings will be displayed on Redfin as long as they're shared in the MLS and disseminated to sites like Redfin through a Virtual Office Website (VOW) where buyers can access them," the spokesperson added. These States See The Most All-cash Home Purchases Zillow and Redfin are some of the biggest online real estate marketplaces, hosting millions of listings on their sites. Zillow Group reported that its apps and sites notched 227 million average monthly unique users during the first quarter, while Redfin said its platforms saw 46 article source: Real estate giants crack down on exclusive 'off-market' home listings in major shift for buyers Sign in to access your portfolio
Yahoo
07-05-2025
- Business
- Yahoo
Redfin (NASDAQ:RDFN) Posts Q1 Sales In Line With Estimates
Real estate technology company Redfin (NASDAQ:RDFN) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 2% year on year to $221 million. Its GAAP loss of $0.73 per share was 4.7% below analysts' consensus estimates. Is now the time to buy Redfin? Find out in our full research report. Redfin (RDFN) Q1 CY2025 Highlights: Revenue: $221 million vs analyst estimates of $221 million (2% year-on-year decline, in line) EPS (GAAP): -$0.73 vs analyst expectations of -$0.70 (4.7% miss) Adjusted EBITDA: -$31.96 million vs analyst estimates of -$34.93 million (-14.5% margin, 8.5% beat) Operating Margin: -38.7%, down from -30.7% in the same quarter last year Free Cash Flow was $34.64 million, up from -$49.54 million in the same quarter last year Brokerage Transactions: 9,866, down 173 year on year Market Capitalization: $1.18 billion "Redfin profits were at the high end of the guidance we gave investors in our last earnings call," said Redfin CEO Glenn Kelman. Company Overview Founded by a former medical school student, electrical engineer, and Amazon data engineer, Redfin (NASDAQ:RDFN) is a real estate company offering brokerage services through an online platform. Sales Growth A company's long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, Redfin grew its sales at a sluggish 3.8% compounded annual growth rate. This fell short of our benchmark for the consumer discretionary sector and is a rough starting point for our analysis. Redfin Quarterly Revenue Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. Redfin's performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 26.1% annually. Redfin Year-On-Year Revenue Growth We can dig further into the company's revenue dynamics by analyzing its number of brokerage transactions and partner transactions, which clocked in at 9,866 and 2,389 in the latest quarter. Over the last two years, Redfin's brokerage transactions averaged 8.5% year-on-year declines while its partner transactions averaged 3.8% year-on-year declines. Redfin Brokerage Transactions This quarter, Redfin reported a rather uninspiring 2% year-on-year revenue decline to $221 million of revenue, in line with Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months. Although this projection suggests its newer products and services will spur better top-line performance, it is still below the sector average.
Geek Wire
06-05-2025
- Business
- Geek Wire
Redfin CEO says employees and agents ‘over the moon' about Rocket's vision for Seattle company
This story originally appeared on Real Estate News. Redfin CEO Glenn Kelman. (Redfin Photo) Redfin on Tuesday announced its last quarterly earnings results as an independent company, with its acquisition by mortgage giant Rocket to be finalized later this summer. The Seattle-based brokerage and home search portal saw a decline in most major metrics compared to the previous quarter, including a drop in revenue and transactions, and increasing net losses stemming largely from its real estate services division and corporate overhead. The rentals and title divisions were profitable. Due to its pending acquisition, Redfin did not host an investor call, but its earnings release highlighted some recent wins. The company saw an increase in loyalty transactions, noting that 40% of sales came from loyalty customers during the first quarter — a significant amount of its total business. The brokerage also noted big gains in agent count. The number of lead agents was up 32% year-over-year, reaching 2,265 by the end of March. What Redfin had to say In a press release, Redfin CEO Glenn Kelman said the rise in lead agents was 'thanks to our new plan to pay agents entirely on commission.' That plan — Redfin Next — rolled out nationwide in October. The acquisition news, Kelman said, also gave the company a boost. 'Since the March 10th announcement of Redfin's agreement to be bought by Rocket, many Redfin employees, from agents to engineers, have been over the moon about Rocket's vision of a home-ownership platform. We can't wait to join Rocket and build the future of homeownership,' he said. Key numbers Revenue: $221 million, which was down from $244.3 million reported in the previous quarter but off by just 2% from the $225.5 million reported in the first quarter of 2024. Cash and cash equivalents: $183.5 million cash on hand at the end of the quarter, up from $124.7 million at the end of 2024. Net income/loss: Net loss of $92.5 million, which was higher than the net loss of $66.8 million reported a year ago and more than double the $36.4 net loss from Q4 2024. Adjusted EBITDA (earnings before income, taxes, depreciation and amortization): A loss of $32 million for Q1 2025 compared to a loss of $27.6 million in Q1 2024. Average number of lead agents: An average of 2,190 lead agents throughout the quarter and 2,265 lead agents at the end of March 2025, a 32% gain year-over-year. Transactions: 12,255 total transactions between brokerage and partner deals in the first quarter, which was down from 14,363 in the previous quarter but close to the 12,730 transactions from Q1 2024. Site traffic: 46 million monthly average visitors, down slightly compared to 49 million the first quarter of 2024 but an increase from the reported 43 million average monthly users in Q4 2024. Notable moves The company's pending acquisition was the big news of the quarter, but earlier in the year, Redfin also announced a rentals deal with Zillow. Per the terms of the partnership, Zillow agreed to pay Redfin $100 million to be the exclusive provider of multifamily rental listings on Redfin and its owned rental sites, and While Redfin's real estate and mortgage business reported net losses in Q1, rentals was in the black with a net profit of $3.6 million.
Yahoo
15-04-2025
- Business
- Yahoo
Redfin joins Zillow in banning privately marketed homes as secret listing fight heats up
Redfin will ban home listings that receive delayed public marketing from appearing on its portal, following Zillow's lead in an ongoing real estate fight over so-called pocket listings. 'Because we believe that all buyers should be able to see all listings, will not publish any listings that have been publicly marketed before being shared with all real estate websites via the MLS,' Redfin CEO Glenn Kelman wrote in a blog post on Monday. Learn more: What are pocket listings, and how do they affect buyers and sellers? Redfin's decision follows a similar move by Zillow in response to a new rule from the National Association of Realtors meant to settle an industry fight over semi-secret listings known as 'pocket' or 'off-market' listings. The NAR kept in place a policy requiring homes to be listed on shared databases known as multiple listing services within a day of beginning public marketing, but added a provision that gives sellers the option to delay advertising their homes online. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy The public marketing rule, known as Clear Cooperation, and the delayed marketing compromise have sparked fierce debate within the industry. Fair housing advocates and listings aggregators including Zillow and Redfin have long supported Clear Cooperation, saying it aids market transparency. Other brokerages have opposed it, arguing it limits seller choice and risks leaving them stuck with the stigma of price cuts and growing days on market. Read more: What is the best time of year to buy a house? Kelman urged MLSs to create a 'Coming Soon' designation that would show homes in an MLS without information about their price history or time on market. Most home sellers want to market their homes to the widest possible pool of potential buyers. But a small percentage of sellers, especially in luxury markets, seek off-market listings to maintain privacy or test aspirational listing prices. In recent years, some brokerages, most notably Compass, have sought to distinguish themselves by promoting their access to private listings. CoStar Group, which owns listings website has also weighed in on the dispute. CEO Andy Florance wrote in a letter to agents last week that real estate platforms should remain neutral on the policy and called Zillow's decision 'a pure power play of epic proportion.' Claire Boston is a Senior Reporter for Yahoo Finance covering housing, mortgages, and home insurance. Sign up for the Mind Your Money newsletter Sign in to access your portfolio
Yahoo
29-03-2025
- Business
- Yahoo
Unpacking Q4 Earnings: Redfin (NASDAQ:RDFN) In The Context Of Other Real Estate Services Stocks
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let's take a look at how real estate services stocks fared in Q4, starting with Redfin (NASDAQ:RDFN). Technology has been a double-edged sword in real estate services. On the one hand, internet listings are effective at disseminating information far and wide, casting a wide net for buyers and sellers to increase the chances of transactions. On the other hand, digitization in the real estate market could potentially disintermediate key players like agents who use information asymmetries to their advantage. The 13 real estate services stocks we track reported a satisfactory Q4. As a group, revenues beat analysts' consensus estimates by 5.5% while next quarter's revenue guidance was 1.2% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.8% since the latest earnings results. Founded by a former medical school student, electrical engineer, and Amazon data engineer, Redfin (NASDAQ:RDFN) is a real estate company offering brokerage services through an online platform. Redfin reported revenues of $244.3 million, up 12% year on year. This print exceeded analysts' expectations by 0.7%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts' EPS estimates but a significant miss of analysts' EBITDA estimates. 'After recording our fourth straight quarter of revenue growth, with profits improving year-over-year in every business segment, we're headed into 2025 with more demand, and a bigger and better sales force,' said Redfin CEO Glenn Kelman. The stock is up 46.6% since reporting and currently trades at $11.20. Read our full report on Redfin here, it's free. Founded in Toronto, Canada in 2014, The Real Brokerage (NASDAQ:REAX) is a technology-driven real estate brokerage firm combining a tech-centric model with an agent-centric philosophy. The Real Brokerage reported revenues of $350.6 million, up 93.4% year on year, outperforming analysts' expectations by 16.8%. The business had an incredible quarter with an impressive beat of analysts' EPS estimates and a solid beat of analysts' EBITDA estimates. The Real Brokerage scored the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 12% since reporting. It currently trades at $4.36. Is now the time to buy The Real Brokerage? Access our full analysis of the earnings results here, it's free. Known for giving homeowners cash offers within 24 hours, Offerpad (NYSE:OPAD) operates a tech-enabled platform specializing in direct home buying and selling solutions. Offerpad reported revenues of $174.3 million, down 27.5% year on year, in line with analysts' expectations. It was a softer quarter as it posted a significant miss of analysts' adjusted operating income estimates. Offerpad delivered the slowest revenue growth in the group. As expected, the stock is down 15.2% since the results and currently trades at $1.84. Read our full analysis of Offerpad's results here. Founded in 1929, Newmark (NASDAQ:NMRK) provides commercial real estate services, including leasing advisory, global corporate services, investment sales and capital markets, property and facilities management, valuation and advisory, and consulting. Newmark reported revenues of $888.3 million, up 18.8% year on year. This result topped analysts' expectations by 12.3%. More broadly, it was a mixed quarter as it also logged an impressive beat of analysts' EBITDA estimates. Newmark scored the highest full-year guidance raise among its peers. The stock is down 8.7% since reporting and currently trades at $12.44. Read our full, actionable report on Newmark here, it's free. Established in 1906, CBRE (NYSE:CBRE) is one of the largest commercial real estate services firms in the world. CBRE reported revenues of $10.4 billion, up 16.2% year on year. This number surpassed analysts' expectations by 1.2%. Aside from that, it was a satisfactory quarter as it also produced an impressive beat of analysts' adjusted operating income estimates but a miss of analysts' Advisory Services revenue estimates. The stock is down 7.9% since reporting and currently trades at $129.60. Read our full, actionable report on CBRE here, it's free. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Sign in to access your portfolio
