With this new partnership, REAL Trends wonders who else may be partnering?
RE/MAX Holdings, Inc., parent company of RE/MAX, has announced a strategic alliance with Redfin, the technology-powered real estate brokerage. The alliance formalizes and expands a longstanding relationship between Redfin and RE/MAX agents via the Redfin Partner Program.
In areas where Redfin does not have capacity to serve customers, Redfin refers customers to approved partner agents at other brokerages, including participating RE/MAX agents. When the customer closes on a home purchase or sale, Redfin receives a referral fee.
Participating RE/MAX agents will have the exclusive opportunity to meet customers from almost 5,000 U.S. postal codes where Redfin.com currently does not promote any agents. In addition, Redfin will only partner with RE/MAX in Canada. Redfin launched its Canadian real estate search site on February 12, bringing its industry-leading search experience to most Canadian provinces. RE/MAX is the market share leader in Canada, selling more real estate than any other brand in 2018, as measured by residential transaction sides.
“Teaming with Redfin further enhances the value we offer to our network of highly productive agents and differentiates RE/MAX from the competition,” said Adam Contos, CEO of RE/MAX, LLC. “By combining our expansive network of professional agents across the U.S. and Canada with Redfin’s massive online audience, consumers are connected with best-in-class agents, and our affiliates are given exclusive access to a rich source of referrals. Everybody wins.”
“With the announcement that RE/MAX, the world’s largest residential brokerage franchise, and Redfin, the United State’s largest tech-driven brokerage, have entered into a partnership agreement to broaden Redfin’s reach into new markets and secure a valuable source of online prospects, the whole industry must now wonder whether there are numerous more tie-ups and restructurings coming,” says Steve Murray, president of REAL Trends.
“The Redfin-RE/MAX partnership also highlights that, while some wonder about the future of the nearly 50-year-old brand, co-founder/chairman Dave Liniger and CEO Adam Contos are not planning for a status quo future,” he says.
The Redfin deal tops the successful launch of Motto Mortgage, which now counts over 100 franchises in less than three years with future growth rates climbing. In the Redfin deal, RE/MAX agents in Canada will become the preferred agent partners with Redfin as it pushes into Canada. In areas in the United States where Redfin does not have owned and operated units, RE/MAX agents will also have access to the lead flow from Redfin’s online presence. Both companies are exploring other ways to work together in the future.
A press release issued by RE/MAX notes that where both companies have agents,
“the current spirit of competition will continue, and the agreement does not prevent either brokerage from serving clients anywhere.”
Additionally, where Redfin already works with partner agents from different brokerages, such agents can continue to participate in the Redfin Partner Program. Agents from different brokerages can continue to apply to become Redfin partner agents in areas not covered by the exclusivity agreement.