BREAKING: RE/MAX and Redfin end exclusive partnership after 2 months

Wanted to share this announcement as it references RE/MAX

Following the announcement of the Redfin Direct service that lets consumers make offers without agents, two companies are parting ways

BY PATRICK KEARNS Staff Writer for Inman news

The deal is off: RE/MAX and Redfin are ending their nascent exclusive referral partnership after Redfin introduced a new platform last week that would allow consumers without buyers’ agents to place offers over the internet on Redfin-listed homes in Boston.

RE/MAX CEO Adam Contos sent a letter to his owners, brokers and agents last week in the wake of Redfin’s announcement and seemed to re-affirm his commitment to the Redfin partnership. On Monday, however, Contos sent a letter announcing the dissolution of the partnership.

“Given Redfin’s recent announcement regarding a program that would encourage buyers not to use agents on listings where the seller is represented by Redfin, we cannot continue with an official, corporate-level relationship at this time,” a spokesperson for RE/MAX said in a statement. “We have begun the process of dissolving our exclusive referral agreement with them beginning today.

The two sides had originally signed a two-year contract, giving RE/MAX agents first access to Redfin’s partner agent program in areas where Redfin didn’t have a presence, which was 5,000 ZIP codes across the U.S. and in Canada.

“We still have mutual esteem between the two companies,” Redfin CEO Glenn Kelman told Inman in a phone call.

Redfin announced last week it was quietly testing the pilot program in Boston, called, “Redfin Direct,” which would present prospective buyers the option to make offers on a Redfin-listed home directly from the company’s website.Homesnap Pro hits 5 years and 1 million agents How we did it and what comes next READ MORE

The goal was to give the seller a competitive offer that would only require a 2 percentage commission – 1 percent to the Redfin listing agent and a 1 percent transaction fee.

There was an immediate concern in some corners of the industry that the move would greatly impact buyers’ agents. Redfin itself, however, said it would still employ buyers’ agents and had no plans to cut them out of deals.

“That program goes against every value RE/MAX has had for more than 45 years,” Contos said in the letter announcing the end of the partnership. “I feel very strongly and passionately about that, as does out Board of Directors and my leadership team.”

My comment: Since I’ve been with RE/MAX since 2002 the practices of these marketing giants does not serve the best interest of buyers and sellers. This is just another practice that is changing the way people buy and sell real estate. RE/MAX agents pride themselves in protecting it’s buyers and sellers by bringing out potential costly clauses that otherwise could hinder our buyers and sellers final outcome.

Author: danswingblog

Dan has celebrated over 19 years as a full-time Realtor. Successfully listed and sold Luxury homes, diversified real estate portfolios. Advises and assists clients with challenging liquidations and purchases. Not uncommon to be working with foreign nationals, buyers that leverage the Sterling, Euro, and similar currency. Dan welcomes the Global community, with friends in many Nations. He brings a reputation for Integrity, Expertise, and Focus. Our customers deserve the best. Currently provides Residential and Commercial B.P.O.'s, Broker Price Opinions, B.O.V's, Broker Opinion of Value to many lenders. Manage and Sells R.E.O., Real Estate Owned properties, distressed properties! Evaluate and negotiate solutions for sellers and lenders. Developed, operated and sold a Florida "AWARD WINNING" Ad Agency! 2010 & 11 Commercial Agent of the year. RE/MAX Paramount Properties. Relocated to Tampa in 2012, enjoyed retirement for 6 months. Saw unethical practices by some Realtors and choose to reverberate our profession in the Tampa area. In four years built his business to as many as four (4) transactions monthly. Mortgage brokers were calling Dan a Superstar in Real Estate. Dan and his wife relocated to North East Florida, to the community of Nocatee. Currently focusing on 55 and older communities and Luxury Real Estate. Successfully closed on many extremely challenging foreclosures, and Short Sale. Coached and participated in Commercial and Multi-Income Family REO's in the past six years. Elected to the Auburndale City Commission in 1986-88. Created and served as 1st Redevelopment Chair in 1988 & 89 personally put in place all the elements for the Auburndale CRA. 1990 City Commission refused to give a full vote of confidence. After a 5 year journey to personally raise funding, extensive research and study for the CRA district perimeters, and stunned with the Commissions doubt. Positioned himself to run for office again, was re-elected to Auburndale Commission, to serve 1991-93 to full fill the CRA master plan! Active with the Central Florida Development Council from conception in 1985 and sat on the board periodically for the past 25 years representing municipalities and private investors. The positions Dan held from 1986 through 1993 enabled him to have a complete workable understanding of the State of Florida Comprehensive Plan for Future Land Use, and the benefits of intergovernmental agreements, utility franchise expansions, and public/private partnerships! Specialties: Assets recovery & receivership, Real Estate Portfolio's, REO & Short Sale of Residential and Commercial negotiations, marketing consultant, public relations, and Broker Price Opinions for residential and commercial lenders.

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