Zillow announces Redfin Partnership with a profit call
Zillow said it will make a prior payment of $ 100 million to Redfin, and the partnership will be rolled out in the course of 2025. The deal has a period of five years with two options to extend it for two years.
The income of the rental lists of Zillow have increased every year since 2020. In 2024 the tenant earned $ 453 million, an increase of $ 357 million in 2023 and $ 274 million in 2022.
“This agreement is really a great win-win,” said Jeremy Wacksman, CEO of Zillow, about the win call. “It expands the range of the network, and we expect that the market in general will benefit, because advertisers can now gain access to Zillow, the Redfin network and, of course, to Broker.comour existing partner. “
Despite a stagnant housing market, Zillow reported that the turnover with double digits across the board increased in both the fourth quarter and the entire calendar year of 2024.
Zillow’s ambition of vertical integration into real estate transactions dates from before the pandemic. The mortgage company is one of the links of the company in the end-to-end transaction, and the income in this category continues to be reflected after it had reached a peak during the narrow boom.
In 2021, Zillow brought $ 246 million to mortgage income, only to see it fall to $ 119 million when the market returned to Earth in 2022, and it fell further at $ 96 million in 2023. In 2024, Zillow earned $ 145 million on His Mortgage Origination Channel, an increase of 51% year after year.
The origination volume is even more higher, because the purchase volume of the company had doubled in 2024, while the refinance reception rose 69%.
“There will be ins and outs and fluctuations [in mortgage] In seasonal quarter to quarter, but it is really a strong growth against a really challenged market, and our improved market strategy really drives most of that, because we introduce customers in Zillow Home Loans if they want to start financing, “said Wacksman.” Or we work together with agents and agent teams to introduce loan officers to them to work with when they want to start by touring first. “
Despite the rapid increase in income, Zillow continues to post a net loss, although this gap is shrinking. The loss for 2024 was $ 112 million, a decrease of $ 158 million in 2023. The loss was driven by sales and marketing costs, which increased from $ 658 million in 2023 to $ 790 million in 2024.
