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Redfin, real estate giant, shuts home-flipping business, cuts 13% of workforce

SEATTLE — Real estate giant Redfin is closing its home flipping unit and laying off 13% of its staff.

The Seattle-based company is making the move because its home-turning business is losing money, CNN reports.

Redfin is following the lead of rival Opendoor, which recently revealed it was selling too many homes at a loss.

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Both companies are known as “iBuyers,” which use computer algorithms to buy homes in bulk and then flip them.

Now the “iBuying” companies say high interest rates and the cost of renovations are rising faster than they can predict.

Executives at both Redfin and Opendoor both predict a slowdown in the real estate market for 2023.

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