Not much has changed over the years in terms of how consumers buy and sell homes in the United States. Real estate technology company Redfin (NASDAQ:RDFN) is in the process of rebuilding this multitrillion-dollar industry around the consumer. With a modest market cap and enormous growth potential, let’s explore why Redfin’s fresh approach to home buying could make it a home run for investors.
Buying a home in the U.S. isn’t fun
Home ownership is a cornerstone of the “American Dream,” yet few people actually enjoy the process of buying one. Consumers rely on real estate agents, banks, and lawyers to get into a new house, and each party takes their pound of flesh along the way. Sellers lose out on 4% to 6% of the home’s sale price to commissions, while buyers are paying banks and lawyers thousands of dollars too.
The process is tedious with as many as 12 steps to closing on a house, and a study…