It wasn’t that long ago, I mentioned discount brokerage Redfin and real estate search engine Zillow’s stock was plummeting. NOT ANYMORE. Both companies are entering the direct home buying business and apparently, Wall Street loves it. Both stocks are up as of today’s date.
Discount real-estate brokerage Redfin will partner with Opendoor, one of the leading home-buying services, allowing homeowners to get an instant offer when they want to sell with Redfin RDFN, +0.56% , the firms announced Thursday.
The fuzzy lines between traditional ways of transacting residential real estate and the increasing popularity of new tech-enabled disruptors. Companies like Opendoor, known as “iBuyers,” buy homes from consumers directly, allowing them to skip the hassle of open houses, repairs and renovations, and uncertain closing schedules.
At a moment when consumers increasingly expect more bespoke and favorable experiences for less cost, the two companies say their initiative “gives homeowners more options for selling their home in a simple and convenient way.”
More to the point, RedfinNow isn’t yet available in all markets, including Boston downtown real estate.
Zillow Stock on the rise
Zillow Z, +2.06% , which has always generated most of its revenue from shopping customer leads to seller’s agents, has continued to maximize those sales as it ramps up its iBuying, which it calls Zillow Offers. That’s even as the company acknowledges the potential for customers to feel a sense of bait-and-switch.