Squeezed?





Squeezed

Today’s Seattle Times has a front page real estate article entitled “Agents Feel Squeezed by New Sites”.

Upon reading the entire article, the headline seems to have nothing to do with the story, but does make a cute tag for the (also unrelated) accompanying illustration. And it does make for “compelling” journalism.

Like other blogs have noted, hits go up when we write about Zillow, so I guess in order to keep my traffic up, I’ll have to do that again.

Zillow is a new real estate portal, now making money by selling advertising. What’s “threatening” about that? Good luck to them.

Redfin is an older real estate brokerage founded in October 2002. The company launched its real estate search site in October 2004 and they raised its first venture capital in September 2005.

They’re a little more “threatening”, but I’d have to say its because of their historical hostility to real estate agents rather than their current business model.

Last year, I estimated that they made approximately $270,000.

This year, as of today, I don’t think they’ve made any money at all. According to available statistics, they’ve not closed one sale in 2006. None. Nothing. Zip. No income from sales. They may have a deal or two in escrow, but no closed sales. They also may also have made some money referring buyers to agents outside of King County, but no income from commissions on the sale of real estate in Seattle that I could find.

They have had plenty of expenses, however. And apparently, they continue to hire more engineers. I’m not sure how many employees in total, but they have 4 managers listed, a public relations person, and 3 agents. With no actual income, they’re going to burn through that $1.25 million pretty fast.

So, no “squeeze” felt from them, either.

It will be fun to see how this all plays out….

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  1. Pingback: 360Digest » Squeezed?

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