iHomes through Amazon by getting Realogy more involved

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Real Estate Agent with (408) 425-1601 CA bre 1519182
https://activerain.com/droplet/5k8W

                                                                        Sam Shueh

   I thought I will share this with you soliciting your feedback why it has a chance to disrupt the real estate industry. Most is extracted from Barron.

 Amazon is joining forces with the largest residential real estate brokerage in the U.S. to connect agents with home buyers and lure customers to Amazon.

 

Amazon (ticker: AMZN) and Realogy Holdings (RLGY) will offer a service called TurnKey that the companies said in a release “simplifies the process of finding and settling into a new home” in 15 American cities. 
“Amazon is not getting into real estate — we are leaving that up to Realogy ,’’ an Amazon spokeswoman said. ‘”We simply work with industry leaders, including Realogy, to help customers enjoy all the benefits smart home products and home services provide.’’  

 

Realogy , which owns well-known names like Coldwell Banker, Century 21, and Corcoran, saw its stock pop on the news in Tuesday trading, while Zillow Group (ZG), which has pushed into the home-buying and mortgage business, is up slightly, and Redfin (RDFN) is down. 

 

Realogy stock has plummeted 85% in the past 24 months as agent fees have fallen across the real estate industry. Realtors are leaving for greener pastures.

 

The U.S. residential real estate market is worth many trillions of dollars, and despite the worsening economics for agents, it has resisted the large-scale digital transformation that has hit other industries like retail and media.

 

Several iBuyers—technology firms that use algorithms to make instant home offers—have emerged to try to offer a new model for home buying and selling. Companies like Opendoor, Redfin, and Zillow (through its Zillow Offers unit) will purchase homes directly from owners and hold the property while they work to resell it.

 

These companies aim to provide certainty, speed, and a simplified process to sellers, who can go from getting a quote to receiving a check for the price of their home in a couple of weeks, and buyers, who work with a company that has direct access to large inventory of homes that are available for immediate move-in. For those benefits, iBuyers charge a fee, typically a few percentage points higher than the 6% industry standard commission.

 

What’s new? The TurnKey site can be accessed through amazon.com/turnkey, which redirects visitors to a Realogy website. Potential home buyers then enter their contact information and receive a call from a Realogy employee, who connects them with an agent. If they end up buying a home, they’ll get a credit of between $1,000 and $5,000 to spend with Amazon Home Services, which provides services like hanging art and installing TVs or Amazon’s Ring doorbell security service.

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Ambassador
2,033,204
Michelle Carr Crowe,Altas Just Call...408-252-8900!
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Sam,

Thank you for sharing your insight on this important topic.

 

 

 

 

Jul 23, 2019 10:12 PM #1
Rainmaker
2,017,044
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Southlake, TX
Selling Homes Changing Lives

Sam Shueh - Times are sure changing rapidly! Thanks for the important information!

Jul 24, 2019 08:18 AM #2
Rainer
232,382
Caroline Gerardo
CMG Financial - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

Sam Shueh I signed up to dig in and find out how it really moves and shakes, will advise 

Jul 24, 2019 01:03 PM #3
Rainmaker
1,013,620
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

I suspect the gift is coming from buyer agent side. Keep use informed.

Jul 26, 2019 08:36 AM #4
Rainmaker
127,449
Victoria CB Trees
Victoria CB Trees Real Estate Services - Chiloquin, OR
Principal Broker

I'm not sure how it doesn't violate antitrust laws by not allowing us peons not associated with Reology owned to participate.  I'm not sure I would, but I think I should be given the option. 

In the state of Oregon, we can't share or rebate commissions to unlicensed persons.  If the Amazon reward comes out of the buyer's agent commission, that would most likely violate our state statute regarding commissions

Aug 07, 2019 12:02 PM #5
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Sam Shueh

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