{"id":2868,"date":"2022-02-18T20:55:24","date_gmt":"2022-02-18T20:55:24","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2022\/02\/18\/redfin-losses-soar-amid-ibuying-ramp-up\/"},"modified":"2025-03-13T02:40:22","modified_gmt":"2025-03-13T02:40:22","slug":"redfin-losses-soar-amid-ibuying-ramp-up","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2022\/02\/18\/redfin-losses-soar-amid-ibuying-ramp-up\/","title":{"rendered":"Redfin losses soar amid iBuying ramp up"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" src=\"https:\/\/preprod.realtrends.com\/blog\/wp-content\/uploads\/sites\/9\/2025\/03\/house-row-HW.png\" alt=\"Housing Market Crash image\" class=\"wp-image-283329\"\/><\/figure><\/div>\n\n\n\n<p>You can\u2019t please all the people all of the time, but <strong>Redfin<\/strong> is a <a href=\"https:\/\/preprod.housingwire.com\/articles\/inside-redfins-unique-brave-and-vulnerable-business-model\/\" target=\"_blank\" rel=\"noreferrer noopener\">unique real estate brokerage<\/a>, an instant homebuyer, a popular listings website, a platform for renters, a mortgage company, a title company, a concierge service, and a research service on the U.S. housing market.<\/p>\n\n\n\n<p>What does that all add up to? A company that posted a $110 million dollar loss in 2021, a sextuple leap from the $19 million lost in 2020. Redfin is projecting similar, if not higher losses, in upcoming quarters as it incorporates multiple moving parts.<\/p>\n\n\n\n<p>The loss was accompanied by rapid growth. Redfin posted $1.9 billion in 2021 revenue, a 108% jump from 2020.<\/p>\n\n\n\n<p>As with rival <strong>Zillow<\/strong>, Redfin grew its 2021 revenue and losses due to iBuying. The company\u2019s properties division, home to iBuying arm RedfinNow, saw revenue rocket to $881 million in 2021 compared to $210 million in 2020, a year when the company partly paused iBuying due to COVID-19.<\/p>\n\n\n\n<p>Redfin CEO Glenn Kelman claimed on an earnings call Thursday that his company is running a profitable iBuying business. The $881 million in revenue did exceed a $871 million \u201ccost of revenue.\u201d But this \u201cgross profit\u201d imagines a world where none of the company&#8217;s $367 million in operating expenses went to iBuying.<\/p>\n\n\n\n<p>In fact, operating expenses were split among Redfin Now, Redfin\u2019s 16-year-old brokerage division, and its mortgage arm. >>>>Continued on <a href=\"https:\/\/preprod.housingwire.com\/articles\/redfin-losses-soar-amid-ibuying-ramp-up\/#\" target=\"_blank\" rel=\"noreferrer noopener\">HousingWire.com<\/a><\/p>\n\n\n\n<p><em>This article was originally published by HousingWire. The\u00a0<a href=\"https:\/\/preprod.housingwire.com\/articles\/redfin-losses-soar-amid-ibuying-ramp-up\/#\" target=\"_blank\" rel=\"noreferrer noopener\">full article is available on HousingWire.com<\/a><a href=\"https:\/\/preprod.housingwire.com\/articles\/what-is-the-next-step-for-nar\/?__hstc=43385018.3580f2db3ddbe8fcf47fa6c91c7501c6.1641567229247.1645208974638.1645217670498.145&amp;__hssc=43385018.1.1645217670498&amp;__hsfp=2210611746\" target=\"_blank\" rel=\"noreferrer noopener\">\u00a0<\/a>for HW+ Members.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite posting a $110 million loss in 2021, Redfin CEO and founder Glenn Kelman said the company remains committed to iBuying at an &#8220;existential level.&#8221;<\/p>\n","protected":false},"author":16592,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[736],"class_list":["post-2868","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.4 (Yoast SEO v26.8) - 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