AMAZON GETS INTO REAL ESTATE! Amazon Turnkey & Realogy – Response to Meet Kevin

Sharon Tseung 0:02
This is the digital nomad quest podcast with Sharon Tseung. teaching people how to build passive income, become financially free and design the best lives. Hey guys, it’s Sharon from digital nomad quests. And normally I put out videos Monday, Wednesdays and Fridays, today is Tuesday. But I actually want to put out this video because there’s some breaking news on how Amazon is getting into the real estate space. So if you go to amazon.com, slash turnkey, you can see that Amazon is partnering with reality. And basically reality is this company that is like an umbrella company with a bunch of brokerages, a lot of the top names and basically what Amazon is doing is, whoever signs up through Amazon turnkey, they get to get the best real estate agent supposedly, and they are also able to get gifts from Amazon. So if you look at their packages, you can look at the home purchase price and see that you can get different package values. So what that means is, you will get some credit for services as well as some home products. So if you get like the most expensive package, you’re going to get a bunch of stuff as well as more credit towards like cleaning and furniture assembly you’ll get echo spots, Echo shows, you can get a ring doorbell Pro, you can get Fire TV cues, you can get a bunch of stuff. And you’ll also get Amazon move who will provide access to these products and services and make things easier for people who are moving. So it seems like a pretty good deal for homebuyers. Let’s go back and talk about the real estate process. So in the real estate transaction process agents get about like a 2.5% commission when they sell homes, and you need both the buyer’s agent and the seller’s agent when it comes to the transaction process of selling the home and buying the home. But these agents need home buyers and home sellers to work with. So they need to get those leads. The idea is people will sign up for this Amazon turnkey process. And Amazon will pass on these leads to reality, which in turn will pass on leads to the brokerages which will in turn pass on these leads to the agents and every step of the way these players get commissions, and then the agents will do the work of actually doing the transaction process. So Amazon is very smart to do this deal because they are going to get into this real estate space where the Commission’s are super high transactions are costly, right? You know, homes cost a lot. And since Amazon is a trusted company, it’s a huge company, they have the clout to be able to do this, they have the ability to get probably a ton of buyers, all they’re really doing is being that name and then passing on leads, it’s a smart move by Amazon, they’re going to get big commissions, realities going to get big commissions as well. So these are two companies to look out for, especially if you’re looking into investing in stocks, right now might be the time to invest in them. I’m not sure don’t hold me on that I’m not a financial advisor or whatever. But I’m probably going to to look into purchasing Amazon stock. I have some already, but I might get some more. But basically, Amazon is super innovative. This is so smart of them because their name is really big. I was just watching this video by meet Kevin about this. And he was talking about how it’s like a bad idea for home buyers. In my opinion, I probably would not use the service. But

I’m actually thinking like macro, right? There’s this question of whether or not these startups that are coming out? Are they going to be able to get rid of the real estate agents in the transaction process? You know, a lot of stars are actually attempting to do this right now trying to get rid of the agents in the in the buying and selling process. Like who knows, because you know, we’re gearing towards this age of automation, new technology. And it seems a little bit outdated to have agents step in for the process. Even though it’s very personal. It’s really nice that you can you can work with someone who can try to help you find the best home or work with someone who’s trying to get you the best deal for selling your home. But what if Amazon figured out a way to allow people to list homes online, but also create a quicker yet safe transaction process? Right now it’s kind of hard, right? Because if someone’s listing their home, maybe people are putting in offers that are Bs, like how do you know if it’s real? But what if Amazon is trying to do that right now? And maybe this is the first step into getting into that space. So that’s what I’m thinking that will change the real estate space dramatically. Who knows? This is just like something I wonder about, which is kind of scary for agents. I have no idea if this is true or not. In the short term, it doesn’t seem possible at all. It might be like years down the road, right? And really, Amazon seems to have the capability of doing so because they have a lot of money. They have a big name. Everyone knows them their trusted company, they would make so much money doing this. And I hope that doesn’t offend y’all agents. You know, I’m actually trying to get my real estate agent license so I can do it part time. So this would be pretty shitty for me. If I actually pursued this route. What do you guys think? Do you guys think that we are gearing towards is that age where we might try to get rid of agents in the transaction process? And do you think Amazon’s trying to do that right now.

Unknown Speaker 5:08
So I hope you guys enjoyed this episode. Please make sure to rate review and subscribe. It really

Unknown Speaker 5:12
helps our podcast grow. And thanks again. I’ll see you guys in the next one.

Transcribed by https://otter.ai