RE/MAX (RMAX) Announces Referral Relationship With Redfin
Zacks Investment Research | Mar 19, 2019 09:03PM ET
RE/MAX Holdings, Inc. (NYSE:RMAX) recently announced a strategic alliance with Redfin (NASDAQ:RDFN) , which will further strengthen the long-term relationship between the companies formed through the Redfin Partner Program.
According to the program, Redfin refers customers from areas it does not have substantial resources, to approved partner agents at other brokerage firms. Redfin receives a referral fee if the customer transacts a purchase or sale of home.
Notably, RE/MAX agents have also participated in this program since its launch in 2009 and with the latest expansion of the alliance, the company’s agents will cater to customers from nearly 5,000 U.S. postal codes. At present, Redfin does not promote any agents in these regions.
Moreover, Redfin will exclusively partner only with RE/MAX in Canada for the program. This agreement will last two years, after which the companies may chose to extend the relationship.
Notably, Redfin introduced its search experience to Canada with the launch of the Canadian real estate search site this February that covered most provinces in the country. Further, RE/MAX is a preeminent leader in the nation and has sold the most real estate in 2018 as compared to other firms. Hence, with Redfin’s digital presence and RE/MAX’s impressive network of agents, the program will likely clinch significant deals in the country.
Further, as part of the agreement, Redfin is streamlining the process through which RE/MAX agents join the program. In addition, it will reduce referral fee for RE/MAX partner agents in Canada and around 5,000 U.S. postal codes from 30% to 25% of the commission.
In fact, RE/MAX agents have received high customer-satisfaction scores from Redfin-referred customers in the past. Redfin surveys Partner Agent customers just as it surveys customers of Redfin agents. Partner Agents, who do not deliver high quality services, are removed from the Redfin Partner Program.
Per RE/MAX management, the relationship between the companies will enhance the value of its network of highly productive agents who will be given increased access to customers through significant referrals.
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