On Tuesday July 23, Amazon (NASDAQ:AMZN) launched TurnKey, a collaborative project with the top dogs in the US real estate market. Notably, house hunters will be able to access free services for up to $5,000 from Amazon if they close house buying deals through real agents affiliated to Realogy.
How TurnKey works
TurnKey is a novel project which should be a win-win for both Amazon and Realogy. Notably, the platform makes life easier for house buyers. Once a prospective house buyer logs onto the TurnKey page, he/she will be connected with a real estate agent within the neighborhood or city of choice.
The matchmaking will be based on the profile of the homebuyer. Further, the real estate agents are thoroughly vetted based on local market expertise and customer service record. If the homebuyer closes the deal with the selected agent, one will be eligible for a range of benefits from Amazon. Particularly, the kind of benefits one receives depend on the price of the house purchased.
The benefits are valued from $1,000 to $5,000. In particular, the benefits come in form of Amazon Home Services, and complimentary products. The benefits include select Amazon Home Services like furniture assembly, picture hanging, and deep cleaning and so on. Also, one will access a range of carefully curated home products.
A white knight for Realogy
The project comes at a time when Realogy was in dire straits in terms of stock performance. For much of this year through Monday July 22, the Realogy stock had dropped over 60%. The decline was caused by the cooling housing market and a general drop in leads. Therefore, the funneling of homebuyers via TurnKey is a great opportunity for Realogy to net leads. In the immediate aftermath of the announcing of the partnership, Realogy shares spiked 19%.
On the other hand, Amazon will benefit by exposing its products and Home Services to more potential customers. As such, the company is gaining an edge over tough rivals like TaskRabbit and Thumbtack. For now, the TurnKey platform will be available to only 15 markets across the US.