Redfin turns profitable

Posted by Rob Lewis

The Naked Truth took place last night in Seattle. TechFlash's John Cook was in attendence and has a great recap of all the activities which included wisdom, advice, and profanties from Arrington and other moguls.

Redfin CEO Glenn Kelman revealed that his company just turned profitable and TechCrunch's Michale Arrington's managed to get a little more information from him off the record.

Since I was sitting next to him on the panel, I asked him off microphone what revenues were. He said the run rate is around $15 million. 2007 revenues were $5 million, 2006 revenues were $1 million.

The Seattle-based real estate startup represents buyers and sellers in residental real estate transactions for a fraction of the long-standing industry rates that take 5-6% of the sale price of a home and split it between buy and sell-side agents.

On the buy side Redfin reimburses 50% of the fee they receive back to the buyer. On the sell side they charge a $5,000-$7,000 flat fee. As a comparision, the normal agent cut on Million dollar house are up to $60,000 - so the savings are huge.

Great news for Redfin. Very bad news for the traditional real esate industry.

Redfin is 75 employees strong, has served over 3,000 customers to date and has secured $20 Million to date in financing from Madrona, Vulcan, DFJ, and BEV.

Company:
Redfin
Website:
http://www.redfin.com
Location:
Seattle, Washington, United States

Redfin is an online real estate brokerage. We have built the best online real estate tools and hired the best real estate agents to help customers find the right home at the right price, with no sales pressure. Unlike other brokerages, we let customers see for themselves our agents' deal history and customer reviews. Our agents are in the top 10 by deal volume for every market we serve. more


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Rob Lewis

Rob Lewis

Rob is the President of Techvibes Media and Editor-in-Chief of Techvibes.com.  His diverse background includes stints in International Trade Finance, Web Development, and Enterprise Software and he is a graduate of the University of British Columbia, British Columbia Institute of Technology, and Simon Fraser University. When not running Canada's leading technology media property, Rob can be... more



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