*By Rebecca Heilweil* *Updated at 5:26 p.m., July 23, 2019* A new partnership between Amazon and the brokerage firm Realogy has sparked excitement — and concern — that the e-commerce giant is now breaking into the real estate industry. The new product, co-offered by the two companies, is called TurnKey and makes Realogy agents available on Amazon's search platform. At the same time, homebuyers become eligible for a package from Amazon worth up to $5,000. For instance, someone purchasing a house for about $200,000 through a Realogy agent found through Amazon would be entitled to a $1,000 package. That would include a credit for Amazon's home services — home service providers like electricians and plumbers — movers, and several Amazon smart home products. Though Realogy's stock had fallen 80 percent over the past year, share prices surged following the partnership's announcement. Meanwhile, Realogy competitor Zillow saw its shares initially drop Tuesday before recovering later in the day. "Amazon says it doesn't necessarily want to be in the real estate business, per se," Wall Street Journal reporter Katherine Clarke told Cheddar. "They want to push their smart home products really heavily, so this is a way for them to do that." "What people fear in the brokerage business especially is that this is a stepping stone to them figuring out a way into the real estate market and that's terrifying for them." Clarke said this partnership is meant to help Realogy gain exposure that can help the company recover from a disappointing year. She added that declines in luxury market sales and contracting commission splits are harming the brokerage industry more broadly. "It will be great for their exposure. It will be great for the industry in general," Rogers Healy of Rogers Healy and Associates Real Estate, told Cheddar. "If anything, it's going to get Amazon closer to [being] that monopoly type company." 'It's kind of like \[Realogy is\] playing catchup," he said, who argued that other real estate companies have already invested in technology. "No one in our industry is concerned about an overtake." Clarke said that as the company faced competition from Zillow and Trulia, the new partnership is "a real stepping stone for [Realogy] in terms of getting people to start their search with a Realogy agent." But Healy cautioned that it's not clear the Amazon package is of that much value to aspiring homeowners, and $5,000 — its maximum value — may not be worth it for being confined to using a Realogy agent. "If anybody is going to make an adjustment over what realtor they're going to use it's probably an entry-level price-point," he said. "It's not as bright as shiny as one would think."

Share:
More In Business
‘Chainsaw Man’ anime film topples Springsteen biopic at the box office
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
Flights to LAX halted due to air traffic controller shortage
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing defense workers on strike in the Midwest turn down latest offer
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
FBI’s NBA probe puts sports betting businesses in the spotlight
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla’s profit fell in third quarter even as sales rose
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
Load More