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Redfin Announces IPO

On-line real estate technology company Redfin is preparing an initial public offering that could be worth $100 million.The Seattle-based company employs real estate agents and develops technology to help people find and buy homes in more than 80 markets in the U.S.

Redfin has never made an annual profit but that its revenues have climbed more than 35 % in each of the last three years. They sold more than 75,000 homes in 2016. They have increased their employee count from 752 in 2013 to 2,193 today.

Redfin has been in business for a decade. Their business model from inception is to streamline home buying by using technology and charging customers lower fees. But it faces similar challenges as real estate brokerages around the country - deal with historic shortages of inventory homes for sale.

They are unique in that they charge home sellers a lower commission than most traditional brokers; its fees total up to 1.5 percent of the sale, compared with a commonly charged 3 percent. Redfin's technology-powered home buying model has not yet managed to replace traditional brokerages. It now sells only 0.6 percent of all U.S. homes. Redfin has never been profitable and has accumulated losses over $600 million. The initial filing with the SEC did not indicate Redfin's pricing plans for its stock or how many shares it plans to sell.

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