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Posted
2 hours ago, UTPhil2006 said:

I despise OpenDoor the most, but Redfin is a close second. They're a huge pain to deal with on the other side of the deal. 

Where is ReMax on that spectrum?  We tried to sell my then-fiance's house via some ReMax couple and they failed miserably.  I called a well-known Austin realtor while we were on our honeymoon and she basically had the place improved and sold by the time we got back.

Posted
14 minutes ago, jimmyjazz said:

Where is ReMax on that spectrum?  We tried to sell my then-fiance's house via some ReMax couple and they failed miserably.  I called a well-known Austin realtor while we were on our honeymoon and she basically had the place improved and sold by the time we got back.

ReMax is fine. It's these new bargain internet "realty" companies that I'm not even sure they visit the property. Basically for the 1% you pay you get what you pay for if even that. They are not an ally and if anything they're a detriment 

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Posted

Interesting to see Rocket just agree to buy Redfin.  I am trying to decide if this is good for Rocket or not?  I see how it broadens the possibility of getting both the sale and the mortgage.  And possible incentive packaging on a sell and repurchase scenario?

But on the flip side of the coin, did Rocket just open itself up to more potential downside pain, if the market doesn't turn?  Rates are indeed coming down, seemingly now in concert with declines in the stock market.  I don't really see how this is a positive for Rocket, at least at this point.  But funny to see "Redfin sucks balls" in this tread followed by "Redfin bought by Rocket!"

Redfin nearly doubles in pre-market trading.  

Posted
3 hours ago, horn4life said:

Interesting to see Rocket just agree to buy Redfin.  I am trying to decide if this is good for Rocket or not?  I see how it broadens the possibility of getting both the sale and the mortgage.  And possible incentive packaging on a sell and repurchase scenario?

But on the flip side of the coin, did Rocket just open itself up to more potential downside pain, if the market doesn't turn?  Rates are indeed coming down, seemingly now in concert with declines in the stock market.  I don't really see how this is a positive for Rocket, at least at this point.  But funny to see "Redfin sucks balls" in this tread followed by "Redfin bought by Rocket!"

Redfin nearly doubles in pre-market trading.  

I was just reading about this. The buyout price was announced at $12.50 per share and RDFN is now trading at just under $10 per share. That leaves a decent 25% upside if you believe this acquisition will go through as announced. A gap that large indicates some doubt by the market, but i can't really see the Trump administration stopping any of these deals. I guess RDFN shareholders could vote it down, but $12.50 seems like a price that stock may not see for a very long time.

RDFN now up ~64% and RKT down ~15%

Im just glad I sold my RDFN puts ($7.5P) after their latest earnings instead of trying to eek out additional gains before expiry (3/21). I woulda been proper fucked. 

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Posted

I don’t see what Redfin has to offer in a consumer environment in which EVERY agent is customizing their own comp.  
 

Also, surprised Rocket has free cash and an appetite to spend it in this environment.  They are making a bet that refinance revenue will pick up, I’m sure.  

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Posted (edited)
10 hours ago, horn4life said:

Interesting to see Rocket just agree to buy Redfin.  I am trying to decide if this is good for Rocket or not?  I see how it broadens the possibility of getting both the sale and the mortgage.  And possible incentive packaging on a sell and repurchase scenario?

But on the flip side of the coin, did Rocket just open itself up to more potential downside pain, if the market doesn't turn?  Rates are indeed coming down, seemingly now in concert with declines in the stock market.  I don't really see how this is a positive for Rocket, at least at this point.  But funny to see "Redfin sucks balls" in this tread followed by "Redfin bought by Rocket!"

Redfin nearly doubles in pre-market trading.  

This model works for big tract home builders such as the DR Horton's of the World. They get the profit from selling a house for more than they have in it, and are willing to finance that house at substantially lower interest rates, I think they are currently offering about 4.5% financing on their own homes, in our area.

Like you, I am wondering how  this is going to work out. 

CHIEF

Edited by CHIEF
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Posted
1 hour ago, CHIEF said:

They get the profit from selling a house for more than they have in it, and are willing to finance that house at substantially lower interest rates

I have a suspicion that this action (using the loan to support the purchase price) is far less profitable for them than you would think.  

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Posted
2 hours ago, CHIEF said:

This model works for big tract home builders such as the DR Horton's of the World. They get the profit from selling a house for more than they have in it, and are willing to finance that house at substantially lower interest rates, I think they are currently offering about 4.5% financing on their own homes, in our area.

Like you, I am wondering how  this is going to work out. 

CHIEF

I sure as hell don't see how overpaying for Redfin is a good deal.  To be honest, rather than merging, I would be a seller of both right now.  it's like a marriage between ugly people hoping for beautiful children... if there is enough cash flow.

19 minutes ago, LCHorn said:

I have a suspicion that this action (using the loan to support the purchase price) is far less profitable for them than you would think.  

Is it desperation, looking for a new captive source of financing?  I don't see the margin in loans to justify the premium for Redfin.  BUT, from what it sound like from everyone here who deals with Redfin. Mortgage funding is difficult for the Redfin dumbass agents. Maybe that's the angle. If you made the agents not so stupid... it would be easier to close a Redfin mortgage?

 

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Posted

This is off the top of my head, but the new compensation rule changes, combined with the entrance into the market by competitors like opendoor, now means that the financing of a house sale or purchase has become much more intertwined into the sale process. So Rocket must believe the future is a package of offerings where the agent functions and financing is more optimized and integrated, like OpenDoor and others like them. 

Posted
2 minutes ago, Dbeasy said:

This is off the top of my head, but the new compensation rule changes, combined with the entrance into the market by competitors like opendoor, now means that the financing of a house sale or purchase has become much more intertwined into the sale process. So Rocket must believe the future is a package of offerings where the agent functions and financing is more optimized and integrated, like OpenDoor and others like them. 

Maybe I am looking at this backwards. Rocket is basically a financing entity. 

If I am Rocket, is not every mortgagor that wants to move an opportunity for two loans?  One for the existing mortgagor for the new home. And a new mortgagor for the property being sold that you have carried the note on for X amount of years.  Just as many agents might negotiate a lower rate on a sale and buy paired together.  Might Rocket looking a the mortgage market in the same way?  Knowing a deal is there, and trying to get both sides for a tiny discount in rate?   

I would think Rocket is the lead marketer.  Selling the "Redfin package" that allows a point(+/-?) On both loan originations, and still make pretty good bank?  THIS IS A QUESTION?

From the professional mortgage lender side of the equation does my meandering make sense mathematically?  I have not idea honestly, but I am trying to figure out why this is a good idea for Rocket and these are my post- Gloria's rita musings.  So might not make any fucking sense at all.. 

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