What was Zillow Offers iBuying and why did Zillow shut it down?

iBuying definition: iBuying (instant buying) is the practice of technology companies directly purchasing homes from sellers for cash at algorithmically determined prices, then renovating and reselling the homes; sellers accept a slight discount to market value in exchange for speed and certainty (no open houses, no buyer contingencies, fast close); Opendoor pioneered iBuying; Zillow, Redfin, and Offerpad all entered the market. Zillow Offers: Zillow launched Zillow Offers in 2018, using its Zestimate price model and additional algorithms to price homes for direct purchase; Zillow's iBuying thesis was that its dominant home data (it had the most historical price data of any company) would give it superior pricing accuracy; Zillow could also generate mortgage and title service revenue from homes it bought and resold. The 2021 failure: in fall 2021, Zillow announced it was shutting down Zillow Offers and writing down approximately $500 million in inventory losses; Zillow's algorithm had overbid for homes during a period of rapidly rising home prices (the COVID housing market); when prices stabilized, Zillow was holding homes it had paid too much for; additionally, renovation delays and labor shortages meant Zillow couldn't renovate and resell homes as quickly as planned; the inventory losses were severe. Industry lesson: iBuying proved extremely difficult because home prices vary enormously by micro-location, condition, and timing; algorithmic pricing cannot adequately capture hyperlocal market conditions; renovation uncertainty adds unpredictable cost; the capital intensity of holding large home inventories creates catastrophic risk in rapidly changing markets. Industry survivors: after Zillow and Redfin exited, Opendoor and Offerpad remained as the primary public iBuyers; both also struggled with 2022-2023 housing market conditions; the iBuying model has proven viable only at smaller scale with very conservative pricing algorithms.

What is Zillow's 'housing super app' vision and how does it generate revenue?

Super app concept: Zillow CEO Rich Barton articulated a 'housing super app' vision where Zillow would be the single app through which U.S. consumers manage every aspect of the home buying and owning process — finding a home, getting a mortgage, completing the purchase, then managing their home (tracking value, finding maintenance services, preparing to sell); by owning more of the transaction flow, Zillow could capture more revenue per transaction. Current revenue reality: Zillow's actual revenue comes from: Premier Agent (approximately 60-65% of revenue in a typical year) — fees charged to buyer's agents who want buyer leads from Zillow's traffic; essentially, buyers search on Zillow, and agents pay Zillow for introductions to these buyers; Rentals (approximately 15-20% of revenue) — fees from landlords who list rental properties on Zillow and Trulia (Zillow-owned); Zillow's rental platform also offers tenant screening and rent collection; Home Loans (approximately 10-15% of revenue) — Zillow mortgage origination via Zillow Home Loans; Zillow attempts to convert home buyers searching on Zillow into Zillow Home Loans mortgage customers. Integrated experience (tours): Zillow facilitates home tours — consumers can request showings through Zillow; Zillow connects them with agents; the more Zillow 'touches' in the transaction, the more revenue opportunities; Zillow's IMTF metric (Integrated Market Total Funnel) tries to measure how well Zillow is converting its consumer traffic into connected transactions across all revenue lines.

What is Redfin's commission structure and how does it compare to traditional real estate?

Traditional commission structure: in the U.S. residential real estate market, home sellers typically paid a total commission of 5-6% of the sale price (divided between the listing agent and the buyer's agent); on a $500,000 home, the seller paid $25,000-30,000 in total commissions; this commission structure had been relatively stable for decades despite housing prices rising dramatically (a 5% commission on a $150,000 home in 1990 was $7,500; on the same home worth $500,000 in 2023, it's $25,000 — for similar services). Redfin's alternative model: Redfin's listing fee is typically 1-1.5% for home sellers (vs. the traditional 2.5-3% listing agent fee); if Redfin also represents the buyer (a Redfin agent on both sides), the combined commission may be even lower; Redfin may offer buyers a commission refund in some markets; Redfin's lower commission is economically sustainable because: Redfin's technology allows agents to handle more transactions; Redfin agents are employed and paid salary + bonuses (not relying entirely on commission splits with a broker); technology reduces administrative time per transaction (automated showing scheduling, digital documents, transaction management software). NAR settlement impact on commission structures: the August 2024 NAR settlement rules require buyers to sign representation agreements specifying agent compensation before touring homes; sellers can no longer be required to offer buyer agent compensation through the MLS; this could accelerate commission compression industry-wide as buyers and agents negotiate compensation directly, making Redfin's low-commission value proposition even more relevant in a market where sellers increasingly question paying high commissions.

brimindinvest.com / compare / redfin-vs-zillow-brokerageLIVE

RDFN

Redfin Corporation · Real Estate - Technology-Powered Brokerage

N/A

N/A this month

VERSUS

⟷

COMPARE

Z

Zillow Group, Inc. · Real Estate - Online Marketplace / Proptech Platform

$32.11

-10.81% this month

Scoreboard verdict

Across AI score, momentum, valuation, upside, operating margin

RDFN

0

Z

0

MIXED SETUP

Comparison scoreboard

MIXED SETUP

AI Score

RDFN N/A

Z 26.8

1Y Return

RDFN N/A

Z -52.45%

Fwd P/E

RDFN N/A

Z 10.64

Target Up.

RDFN N/A

Z +88.41%

Op. Margin

RDFN N/A

Z N/A

Metrics last refreshed: 6/22/2026

Quick take

RDFN vs Z Stock Comparison: AI Score, Valuation, Performance and Upside

RDFN (Redfin) and Z (Zillow) are both residential real estate technology companies competing in the U.S. home buying and selling market with very different business models — Redfin is a technology-powered brokerage employing agents directly with lower commission rates, while Zillow is the dominant online real estate marketplace with 200M+ monthly visitors monetized primarily through agent lead generation (Premier Agent) and mortgage origination.

RDFN vs Z is technology-powered direct brokerage with lower commission model and employed agents (Redfin's 1-1.5% listing commission, integrated mortgage/title services, and NAR settlement opportunity — employed agent fixed cost structure creating profitability risk in down markets and competing against Zillow's superior consumer traffic) versus dominant real estate marketplace with network effect consumer traffic (Zillow's 200M monthly visitor top-of-funnel, Premier Agent lead revenue, and rental market expansion — NAR settlement buyer agent commission risk and iBuying exit limiting transaction economics capture).

Live analysis · updated 6/22/2026

RDFN and Z are closely matched — they split the tracked metrics evenly.

Normalized 1Y performance

RDFN

Z

Not enough data to chart yet.

Recent returns

RDFN

Z

Analyst price targets & sentiment

RDFN

Price target data unavailable

N/A

Z · 6 analysts

STRONG BUYHOLDSTRONG SELL

Hold (2.6/5.0)

Price target range

analyst low$40.00
analyst high$76.00
analyst mean$60.50
current price$32.11

+88.4% upside to analyst mean

Who should consider this stock?

RDFN may suit investors who:

→Want exposure to a real estate technology brokerage with a differentiated lower-commission model that may gain market share as seller commission pressure intensifies following the NAR settlement changes to buyer agent compensation
→Value Redfin's employed agent model and technology integration as creating more consistent service quality and data collection than independent contractor brokerage models
→Accept the cyclical risk of an employed agent cost structure in exchange for Redfin's potential to capture a growing share of the home sale market as commission structures become more competitive

Z may suit investors who:

→Want exposure to the dominant U.S. real estate marketplace with 200M+ monthly visitors — the highest-traffic consumer real estate destination that generates lead volume for agents, mortgage lenders, and rental properties
→Value Zillow's Premier Agent business as a durable lead generation franchise that captures real estate professional spending tied to the enormous U.S. residential real estate market
→Believe Zillow's rental marketplace expansion represents a large incremental revenue opportunity as the U.S. multifamily rental market's $500B+ annual scale is increasingly mediated through digital platforms

Performance & AI score

Metric	RDFN	Z
AI score	N/A	26.8
AI rank	N/A	#2553
Latest close	N/A	$32.11
1M return	N/A	-10.81%
6M return	N/A	-53.31%
1Y return	N/A	-52.45%

$10,000 invested — hypothetical growth (dividends reinvested)

How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?

Period	RDFN	Z
1Y ago	N/A	$4.75K (-52.5%) started 2025-06-18
5Y ago	N/A	$2.77K (-72.3%) started 2021-06-18
10Y ago	N/A	$9.24K (-7.6%) started 2016-06-20

Hypothetical — past performance does not guarantee future results.

Valuation & upside potential

Metric	RDFN	Z
Market cap	N/A	$7.35B
Trailing P/E	N/A	128.44
Forward P/E	N/A	10.64
Price/Sales	1.37	2.73
EV/Revenue	N/A	2.59
Analyst target	N/A	$60.50
Target upside	N/A	+88.41%

Growth, profitability & risk

Metric	RDFN	Z
Revenue growth	N/A	18.40%
Earnings growth	N/A	533.30%
EPS growth	N/A	+533.30%
FCF margin	N/A	+10.60%
Operating margin	N/A	N/A
Profit margin	N/A	2.27%
ROIC proxy	N/A	1.33%
Return on equity	N/A	1.33%
Dividend yield	N/A	0.00%
Beta	0.33	1.94
Debt/equity	N/A	9.73
Current ratio	N/A	2.29
Quick ratio	N/A	1.68

Drawdown & downside risk

Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.

1Y risk snapshot

RDFN max drawdownN/A

Z max drawdown64.56%

RDFN max wkly dropN/A

Z max wkly drop20.96%

5Y risk snapshot

RDFN max drawdownN/A

Z max drawdown78.29%

RDFN max wkly dropN/A

Z max wkly drop36.26%

10Y risk snapshot

RDFN max drawdownN/A

Z max drawdown86.51%

RDFN max wkly dropN/A

Z max wkly drop39.72%

Performance metrics by period

Period	Metric	RDFN	Z
1Y	Growth	N/A	-52.45%
	CAGR	N/A	-52.47%
	Sharpe ratio	N/A	-1.56
	Max drawdown	N/A	64.56%
	Max daily drop	N/A	16.54%
	Max wkly drop	N/A	20.96%
5Y	Growth	N/A	-72.31%
	CAGR	N/A	-22.65%
	Sharpe ratio	N/A	-0.32
	Max drawdown	N/A	78.29%
	Max daily drop	N/A	24.92%
	Max wkly drop	N/A	36.26%
10Y	Growth	N/A	-7.62%
	CAGR	N/A	-0.79%
	Sharpe ratio	N/A	0.16
	Max drawdown	N/A	86.51%
	Max daily drop	N/A	26.92%
	Max wkly drop	N/A	39.72%

Business comparison

Category	RDFN	Z
Company	Redfin Corporation	Zillow Group, Inc.
Sector	Real Estate - Technology-Powered Brokerage	Real Estate - Online Marketplace / Proptech Platform
Industry	N/A	N/A
Core business	Redfin is a technology-powered residential real estate brokerage that employs agents directly (rather than using independent contractor agents like traditional brokerages) and uses technology to enable agents to handle more transactions with lower overhead per transaction. Redfin's differentiation includes offering sellers lower commission rates (historically 1-1.5% listing commission vs. the traditional 2-3%), providing buyers with commission refunds, and offering integrated services (Redfin Mortgage, Title Forward title company) for a more seamless transaction experience. Redfin also attempted iBuying (Redfin Now — direct home purchase) but exited this business in 2022 due to losses. Redfin generates revenue through real estate services fees and mortgage origination.	Zillow Group is the most visited U.S. residential real estate website and app, serving as the primary destination for home buyers, sellers, and renters searching for properties. Zillow's primary revenue comes from: Zillow Premier Agent (fees charged to real estate agents who pay for buyer lead referrals through Zillow's platform — Zillow's largest business); Rentals (landlord advertising fees, tenant screening, and rent payment services for rental listings); and Zillow Home Loans (mortgage origination). Zillow attempted iBuying (Zillow Offers — directly buying and selling homes) but shut it down in 2021 after significant losses when its price prediction algorithm failed during a volatile housing market. Zillow's primary competitive moat is its dominant consumer mindshare — approximately 200+ million unique monthly visitors — which is extremely difficult for competitors to replicate.
Investor focus	Investors track Redfin's real estate transaction volume, revenue per transaction, mortgage origination attachment rate, and path to profitability as the company manages its employed agent cost structure through housing market cycles.	Investors track Zillow's IMTF (Integrated Market Total Funnel — measuring how many connections Zillow facilitates between consumers and real estate professionals and lenders), mortgage origination volume, rental market revenue growth, and overall path to Zillow's 'housing super app' vision.

RDFN strengths

→Lower commission model attracts cost-conscious sellers in a market where commission pressure has increased — Redfin's 1-1.5% listing commission resonates with sellers who increasingly question the traditional 5-6% total commission structure, particularly following the NAR settlement that has changed buyer agent commission practices
→Employed agent model provides data collection and quality control advantages — Redfin's directly employed agents are easier to train, manage, and collect performance data from than independent contractor agents used by traditional brokerages; technology-driven workflows can be more consistently implemented with employed agents
→Integrated mortgage and title services capture more transaction economics — Redfin Mortgage and Title Forward title services allow Redfin to capture revenue from financing and closing that traditional brokerages lose to third-party lenders and title companies

Z strengths

→Dominant consumer mindshare with 200M+ monthly visitors creates a nearly impenetrable top-of-funnel advantage — Zillow is where home buyers start their search; this consumer traffic is the foundation of every other Zillow business unit; building this audience took 15+ years of brand building and product investment that no new competitor can quickly replicate
→Rental market is a large, growing, underserved digital marketplace — U.S. multifamily rental is a $500B+ annual market; landlord and apartment advertising, tenant screening, and online rent payment represent significant revenue opportunities Zillow is capturing through its rental platform
→Premier Agent network creates a multi-billion dollar lead generation business from existing consumer traffic — approximately 90% of home buyers in the U.S. work with a buyer's agent; these agents pay Zillow for buyer leads; with 200M monthly visitors, Zillow generates enormous lead volume that agents value highly

Risks to watch — RDFN

→Employed agent cost structure creates operating leverage risk in down markets — Redfin's directly employed agents are fixed costs; in a housing market downturn (fewer transactions), Redfin's revenue falls but agent salaries continue; this creates significant profitability pressure in down cycles as experienced in 2022-2023
→Real estate commission compression from NAR settlement creates both opportunity and risk — the 2024 NAR settlement on buyer agent commissions may reshape how buyer agents are paid; Redfin's low-commission model may attract more sellers, but the transition creates uncertainty for all brokerage business models
→Competing against Zillow's market network effect for consumer mindshare — Zillow's dominant home search traffic means most home buyers start on Zillow; Redfin must convert buyers who search on Zillow to Redfin brokerage services

Risks to watch — Z

→NAR settlement and commission changes could reduce buyer agent spending on Premier Agent leads — if buyer agents earn less (or are paid differently) post-NAR settlement, their willingness to pay for Zillow Premier Agent leads may decline, directly impacting Zillow's largest revenue segment
→iBuying exit left Zillow with reduced transaction economics vs. its original housing super app vision — Zillow's original 'housing super app' vision involved controlling the end-to-end transaction by buying homes directly; exiting iBuying means Zillow captures a smaller share of transaction economics, remaining primarily a lead generator rather than a transaction principal
→Online real estate lead generation has significant competition from Realtor.com, Homes.com, and Opendoor — despite Zillow's dominant position, competitors spend heavily to capture consumer home search traffic

Frequently asked questions

Background: the National Association of Realtors (NAR) settled a major antitrust lawsuit in 2024 for $418 million; the lawsuit alleged that NAR rules artificially inflated buyer agent commissions by requiring sellers to offer buyer agent commissions through the MLS (Multiple Listing Service) as a condition of listing; sellers were essentially required to pay the buyer's agent without being able to negotiate this away. New rules: under the settlement, effective August 2024, sellers are no longer required to offer buyer agent compensation through the MLS; buyers and their agents must now negotiate compensation directly (through buyer representation agreements signed before touring homes); this decouples buyer agent compensation from the seller's listing decision. Potential outcomes: some buyers may choose to tour homes without agent representation to avoid paying buyer agent fees; buyer agents may increasingly charge buyers directly (hourly fees, flat fees, or percentage of purchase price); the total commission paid on a home sale may decline from the traditional 5-6% (combined buyer and seller agent commission) toward lower totals as competition increases; sellers may retain more proceeds from home sales. Impact on Redfin and Zillow: Redfin: if seller commissions continue to decline (sellers prefer lower-commission listings), Redfin's 1-1.5% model becomes more competitive; but if buyers avoid agents altogether, Redfin loses potential buyer-side business; Zillow: if buyer agents earn less commission income, they have less money to spend on Zillow Premier Agent leads; this could reduce demand for Zillow's largest revenue product; both companies are adapting their business models to the post-NAR settlement environment.

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