Trulia co-founder says Redfin IPO ‘more important moment’ for real estate than Zillow or Trulia IPO Trulia co-founder says Redfin IPO ‘more important moment’ for real estate than Zillow or Trulia IPO

Trulia co-founder says Redfin IPO ‘more important moment’ for real estate than Zillow or Trulia IPO

"Tech gives Redfin operating leverage & marketing efficiencies. They are above 95%+ of traditional brokerages"

 

Redfin is doing well in the public markets since its debut last week, with the tech-powered real state brokerage trading near $25 per share and now valued at around $2 billion.

And one innovator in the online real estate industry is watching the progress closely.

In a 19-part Tweetstorm, Trulia co-founder Pete Flint, who sold his company to Zillow for $2.5 billion in 2015, yesterday offered some interesting (and flattering) thoughts on Redfin and its prospects to disrupt the real estate industry.

Interestingly, Flint — who stepped off the Zillow Group board earlier this year, but remains a long-term shareholder in the company — said that Redfin’s IPO “is a far more important moment for real estate industry than Zillow or Trulia IPOs.” He also warned that Redfin’s emergence on the public markets will “force the traditional real estate industry to up its game and “become more professional & innovative,” something that will cause some short-term pain in the mid-term, but will eventually be good for the industry.

Flint also touched on the debate of whether Redfin is a real estate company or a tech company, an issue we explored in this GeekWire story just prior to the Redfin IPO. (As Flint notes, Redfin now commands a value more than RE/MAX).

Here are Flint’s full remarks from Twitter:

1/ The Redfin IPO is a far more important moment for the real estate industry than the Zillow or Trulia IPOs  .

 

1/ The Redfin IPO is a far more important moment for the real estate industry than the Zillow or Trulia IPOs  .

2/ The mgmt team at Redfin especially @glennkelman deserve enormous credit, 13 yr journey to IPO compared to 7 for  and 6 for .

 

2/ The mgmt team at Redfin especially @glennkelman deserve enormous credit, 13 yr journey to IPO compared to 7 for  and 6 for .

3/ Sharing a few thoughts, after asks by lots of people. Thoughts my own, no longer on the  board, remain a major LT shareholder.

 

3/ Sharing a few thoughts, after asks by lots of people. Thoughts my own, no longer on the  board, remain a major LT shareholder.

4/ The core business is clearly a successful model, as demonstrated by the thousands of profitable brokerages in the US.

 

4/ The core business is clearly a successful model, as demonstrated by the thousands of profitable brokerages in the US.

5/ Tech gives Redfin operating leverage & marketing efficiencies. In tech they are head & shoulders above 95%+ of traditional brokerages

 

5/ Tech gives Redfin operating leverage & marketing efficiencies. In tech they are head & shoulders above 95%+ of traditional brokerages

6/  valuation at roughly $2BN is shocking traditional RE, more valuable than 44 yr old RE/MAX and almost half a Realogy, the Goliath

 

6/  valuation at roughly $2BN is shocking traditional RE, more valuable than 44 yr old RE/MAX and almost half a Realogy, the Goliath

7/ Brokerages have traditionally not done well as public co's, and  are primarily franchise operations, with better margins

 

7/ Brokerages have traditionally not done well as public co's, and  are primarily franchise operations, with better margins

8/ Key  challenge is the business is highly seasonal & cyclical. Redfin is potentially even more exposed with employee agents costs.

 

8/ Key  challenge is the business is highly seasonal & cyclical. Redfin is potentially even more exposed with employee agents costs.

9/ A public Redfin is like flying an overcrowded plane in a tropical storm. U might reach yr destination but guaranteed a very bumpy ride

 

9/ A public Redfin is like flying an overcrowded plane in a tropical storm. U might reach yr destination but guaranteed a very bumpy ride

10/ Also, how important is the quality of the agents vs the tech? While I'm a major tech investor, I've seen how real estate transactions...

 

10/ Also, how important is the quality of the agents vs the tech? While I'm a major tech investor, I've seen how real estate transactions...

11/ ...are fundamentally driven by people supported by tech, not the other way around. However millennials are changing the landscape her...

 

11/ ...are fundamentally driven by people supported by tech, not the other way around. However millennials are changing the landscape her...

12/ Traditional agents have many amazing tech tools available from zillow and other tech companies.

 

12/ Traditional agents have many amazing tech tools available from zillow and other tech companies.

13/ The Zillow & Trulia IPOs were the nail in the coffin for traditional RE media - newspapers, will Redfin do the same for brokers?

 

13/ The Zillow & Trulia IPOs were the nail in the coffin for traditional RE media - newspapers, will Redfin do the same for brokers?

14/ The basic RE transaction hasnt changed, is slow, expensive & frustrating, innovation wont come from incumbents. Change inevitable

 

14/ The basic RE transaction hasnt changed, is slow, expensive & frustrating, innovation wont come from incumbents. Change inevitable

15/ The Redfin IPO as with any major competition will force the RE industry to up it's game and become more professional & innovative

 

15/ The Redfin IPO as with any major competition will force the RE industry to up it's game and become more professional & innovative

16/ This will be good for everyone from consumers to top agents to brokerages, but will come with a bunch of pain mid term.

 

16/ This will be good for everyone from consumers to top agents to brokerages, but will come with a bunch of pain mid term.

17/ Tech & online mktg investments & innovative transaction models in the RE industry are set to substantially increase. A good thing.

 

17/ Tech & online mktg investments & innovative transaction models in the RE industry are set to substantially increase. A good thing.

18/ It's early days for a public Redfin, but without doubt their IPO is a good thing for the entire industry & consumers.

 

18/ It's early days for a public Redfin, but without doubt their IPO is a good thing for the entire industry & consumers.

19/ Redfin has defied critics in the past (myself included) another slog ahead, theres a chance they do it again. I'll be watching.

 

Shared from: GeekWire

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