Henry Ellenbogen:

Redfin has a strong website that attracts consumers interested in transacting homes. And it produces tools that make its agents more productive. The average Redfin agent closes three times as many transactions as the average real estate agent in the country. Redfin can reinvest that efficiency in lower prices.

If you want to sell your house on Redfin, instead of paying a 2.5% or 3% commission, you pay them 1%. And that has allowed them to gain share. At the end of the third quarter, they had less than a 1% share of real estate transactions in the country, but they were growing around 20% in a market that’s up modestly. We think their share gain is going to continue because of this efficiency.