25 Jul Amazon’s Next Move In Real Estate
Amazon’s Next Move In Real Estate
E-commerce giant Amazon has set its eyes on the real-estate lead generation business through a tie-up with brokerage firm Realogy. This program called TurnKey connects homebuyers to one of Realogy’s real estate agents when they search through Amazon.
“Realogy’s great affiliated agents serve their clients during one of the most important moments in their lives, and Amazon’s services and products can transform that moment to make it rewarding in a way no one ever has before,” said Ryan M. Schneider, CEO and President, Realogy.
The program is initially being offered across 15 markets. Apart from connecting buyers to Realogy agents, Amazon plans to promote its home services offerings through this program. The e-commerce behemoth will offer complimentary home services products ranging from $1,000 to $5,000 when a buyer closes on a home through a TurnKey agent.
“Customers can be overwhelmed when moving, and we’re excited to be working with Realogy to offer homebuyers a simplified way to settle into a new home,” said Pat Bigatel, Director Amazon Home Services in a statement. “The Amazon Move-In Benefit will enable homebuyers to adapt the offering to their needs–from help assembling furniture to assisting with smart home device set up, to a deep clean, and more.”
According to the Wall Street Journal (WSJ), this partnership is likely to cause some unease in the brokerage industry. It follows Amazon’s attempt to hire realtors through its site in 2017, which had caused alarm in the industry. However, Amazon told WSJ that it isn’t interested in selling real estate at least for now.
So far this business was dominated by Zillow’s Premier Agent program, the WSJ report said. It drew $898 million in revenue for Zillow last year.
The WSJ report also pointed out that while Realogy aims to bolster its brokerage business through this partnership, it would be “forgoing the opportunity to generate revenue from its own relationships with homeowners by selling ancillary services or referrals to local service providers.