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.