In a statement, Redfin said the issue that abruptly concluded the partnership was the new Redfin Direct service that the Seattle-based brokerage was testing. The service, now in a pilot program in Boston, is designed to help Redfin’s listing customers get offers from unrepresented buyers.
“We had briefed RE/MAX on the technology prior to announcing the partnership, but RE/MAX became concerned that Redfin Direct would undermine the standing of North American buyers' agents,” Redfin said in its statement. “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.”
RE/MAX also issued a statement on the end of the pact.
"RE/MAX strongly believes the role of a real estate agent in the homebuying and selling process is more important than ever," the company said in its statement. "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."
Under the terms of this now-defunct partnership, RE/MAX agents were to have the exclusive opportunity to do business with Redfin customers in the nearly 5,000 ZIP code markets where Redfin does not promote its own agents. Additionally, Redfin was to exclusively partner with RE/MAX in Canada’s housing market.