Redfin eyes expansion in 2010 |
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We find our stories in all sorts of places -- insider tips, press releases, SEC filings and court documents. But there's another spot where companies sometimes show their hand: job listings.
In fact, that's where the PSBJ's Kirsten Grind recently uncovered a little tidbit about Redfin. The Seattle online real estate upstart is currently looking for a Manager of New Market Expansion, a new position which signals that a serious North American expansion is in the works.
The job description reads: "Redfin is expanding! We are looking to bring our industry-leading customer service and fresh approach to buying and selling homes to more U.S. metro-areas and we need an entrepreneurial, driven, and resourceful candidate to lead the charge."
The job posting does not indicate where Redfin plans to expand, and CEO Glenn Kelman declined to comment when asked about specific cities. However, it does say that the position requires a "significant amount of travel."
There are some more concrete clues about where Redfin is looking to go. Another job listing calls for designated launch brokers in Dallas and Northeast New Jersey. The Redfin home page also has noted for several weeks now that the company is looking to expand in Phoenix and Portland, the latter of which poses some interesting challenges given that Oregon prevents real estate commission rebates.
"We’ll do our best to overturn it," said Kelman of the Oregon law. He added that similar laws or rules in New Jersey, Montana, Illinois, Kentucky and New Mexico have been "overturned or beaten back" by the Department of Justice or through consumer action.
Redfin's expansion was to be expected. When the company raised $10 million in funding last November, it noted that some of the money would be used to bankroll new markets.
Glenn Kelman
The company already offers service in Atlanta, Boston, Chicago, New York, LA, Orange County, Sacramento, San Diego, San Francisco, Washington D.C. and Seattle. But even so, there are some holes in the coverage: Houston, Denver, etc.
At this point, Redfin's online real estate search service covers about a quarter of homes in the U.S.
"When other real estate sites release traffic numbers, we always divide those by four and compare them to ours, but sooner or later you just have to cover the territory and see how you stack up," said Kelman. "Interestingly, every market we open grows traffic faster than its predecessor, so that tells us there are economies of scale to expansion."
There's another big reason why Redfin is now looking to expand. Kelman said that it can bring new markets to profitability much quicker than it once did -- between three to six months.
"We nearly doubled revenues last year, which was one of the worst in the history of real estate, and most of that was driven by market-share gains in our existing markets," he said. "Gaining share quickly while using very little capital gave us the confidence to expand."
John Cook is co-founder of TechFlash. Follow on Twitter @johnhcook.
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