Redfin is already trying to defend against a new flat-fee real estate startup

Core Viewpoint - Redfin is responding to a new startup, Landian, which offers a flat-fee service for homebuyers, aiming to disrupt traditional real estate commission structures [1][2]. Group 1: Startup and Market Changes - Landian, co-founded by Josh Sitzer, aims to change how homebuyers search for and purchase homes by eliminating commissions through a flat-fee model [1][2]. - The National Association of Realtors (NAR) settled a lawsuit with Sitzer, agreeing to pay $418 million in damages and abolishing the Participation Rule, which is expected to significantly impact the real estate market [2]. Group 2: Redfin's Position - Redfin expresses skepticism about the flat-fee model, citing past experiences where a similar approach did not succeed due to competitive market challenges [3]. - The company emphasizes its current model, which charges commissions as low as 1% for home sellers and 2% for homebuyers, claiming to have saved customers $1.6 billion in fees [3]. - Redfin differentiates itself by not charging for tours and not requiring customers to hire agents without prior interaction, unlike Landian [3]. Group 3: Future Considerations - Redfin indicates a possibility of experimenting with a flat-fee itemized service in the future, but remains cautious about the approach [4].