Amazon's Partnership With Realogy Raises Eyebrows in Real Estate Industry
*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."
A rare magnum of Dom Pérignon Vintage 1961 champagne that was specially produced for the 1981 wedding of Prince Charles and Lady Diana has failed to sell during an auction. Danish auction house Bruun Rasmussen handled the bidding Thursday. The auction's house website lists the bottle as not sold. It was expected to fetch up to around $93,000. It is one of 12 bottles made to celebrate the royal wedding. Little was revealed about the seller. The auction house says the bids did not receive the desired minimum price.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
U.S. sports betting is booming as NFL and college football fuel massive activity. BetMGM CEO Adam Greenblatt breaks down trends, growth, and what’s next.
President Donald Trump says a deal struck by Netflix last week to buy Warner Bros. Discovery “could be a problem” because of the size of the combined market share. The Republican president says he will be involved in the decision about whether federal regulators should approve the deal. Trump commented Sunday when he was asked about the deal as he walked the red carpet at the Kennedy Center Honors. The $72 billion deal would bring together two of the biggest players in television and film and potentially reshape the entertainment industry.
Disney's changes to a program for disabled visitors are facing challenges in federal court and through a shareholder proposal. The Disability Access Service program, which allows disabled visitors to skip long lines, was overhauled last year. Disney now mostly limits the program to those with developmental disabilities like autism who have difficulty waiting in lines. The changes have sparked criticism from some disability advocates. A shareholder proposal submitted by disability advocates calls for an independent review of Disney's disability policies. Disney plans to block this proposal, claiming it's misleading. It's the latest struggle by Disney to accommodate disabled visitors while stopping past abuses by some theme park guests.
