No. of Recommendations: 6
Zillow was recently brought up as a company that could see huge growth as a buyer and seller of real estate in the new era with a totally new model disrupting the traditional 6% commission and commission based realtors.

Redfin is another in this space. They are buying houses offering 7% off (either appraisal value or something else not sure). But the discount could be immaterial if the home selling process is immediate and simplified compared to getting only 1% more after paying 6% tonrealtors.

Here is a good article that discusses Redfin.

I’m it they compares offer values between open door, Zillow. And Redfin. Zillow offered the highest.

So, is this disruption of the real estate industry with this new way of buying and selling houses just a race to the bottom? Just sell to who offers more?

As warren Buffett says don’t confuse a growing industry with a profitable one. Is that what’s happening here? Razor thin margins and a race to the bottom until one blows up in a real estate market decline?

Interesting space but the advantage can’t just be paying more.
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