RE/MAX withdrew today from its corporate partnership with Redfin, a deal only just announced in March. The partnership, in which Redfin was to provide referrals to RE/MAX agents in Canada and roughly 5,000 zip codes in the U.S., was originally reported to last for two years with an option to renew, however according to statements issued, RE/MAX developed concerns that a new service Redfin recently launched to get offers from unrepresented buyers would undermine the standing of North American buyers’ agents.
In a statement released Monday, RE/MAX said, “RE/MAX strongly believes the role of a real estate agent in the homebuying and selling process is more important than ever. Consumers faced with the largest, most complex financial transaction of their lives should have a knowledgeable professional to guide and advise them. We believe real estate agents provide this essential service to a successful buying and selling experience.
“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. We have begun the process of dissolving our exclusive referral agreement with them beginning today.”
According to a statement from Redfin, at issue between the two companies is Redfin Direct, a new service Redfin is piloting in Boston for Redfin’s listing customers to get offers from unrepresented buyers. “Redfin understands this concern, as we employ thousands of licensed professionals and believe the vast majority of homebuyers need professional advice, and will happily pay for it. But we also have a duty to get as many offers for our customers’ listings as we possibly can, and to give those listing customers the best value. We believe in consumer choices; our mission is to redefine real estate in consumers’ favor.”
Read the full position on the industry impact of Redfin Direct from Redfin CEO Glenn Kelman, here.