By now you have seen the numerous articles released about the new Amazon and Realogy partnership. The headlines say “you will receive $5,000 in Amazon products and home services” if you go through their new Turnkey program, which then sends you to a Realogy realtor. But if you look at the breakdown, that $5,000 is only if the home purchase is over $700,000. That’s right; you have to purchase a home over $700,000!
In some cities, like San Francisco, Washington D.C., Los Angeles, and Seattle that have high median home sales, this perk is easily attainable. However, in other cities, like Atlanta, St Paul, and Charlotte, the median home sale is under $300,000, which certainly wouldn’t put you in the $5,000 promo bracket.
To put it in simple math, let’s apply this promotion to a realistic home sale in one of the smaller cities that offers Amazon's Turnkey.
In Charlotte, according to Zillow, the median home sale price (not the median list price) is $228,100.
If you purchase a home for that price, that puts you within the $150,000 to $399,000 bracket, which only gives you $1,000 in Amazon home services and Amazon home products. When you look at the breakdown, it only gives you $450 towards in-home services. The rest is given to you in Amazon home products like the ring doorbell II ($199), echo dot ($49.99) and echo show ($89.99 to $229.99 depending on model). Let’s be honest; if you have a tech-savvy home, there is a good chance that you already have at least one of these products.
If you fall within the home sale bracket of $400,000 to $699,000, you still only receive $2,500 in Amazon products and home services. Specifically, you earn $1,000 in Amazon home services and two echo dots ($49.99 each), one echo show ($89.99 to 229.99 depending on model), one ring doorbell II ($199), one sonos beam ($394.99), and 1 eero wifi ($199).
According to our sources, the cost of this promotion is coming out of the agent's commission, and we all know who ends up paying for the agent’s commission (I’m looking at you - home seller
)! Speaking of home sellers, if you are one, then you need to read this next part since you are essentially funding the Amazon promotion.
You know how much we like to empower you to research your selling options. That being said, let’s compare what you will pay when using a realtor vs. a flat fee agent. Keep in mind that this is a basic example and does not include other costs and fees that you would have to pay. Our flat-fee pricing for this example is based on initial costs from a prominent flat fee service.
To keep it simple, let’s use the $228,100 median home sale from above.
A full-service agent would cost you on average a 6% commission ($13,686).
If you choose to go with a flat fee service, using the same home price, you will pay a flat $3,000 fee plus a percentage to the buyer's agent if they have one. If you put in an average of 2% to the buyer, then your buyer commission would be $4,562. Add that with your flat fee and your total paid out in commissions would be $7,562. That is a difference of $6,124. You could purchase a lot of Amazon services and products with that amount.
Overall, if you are a home buyer and want to use a realtor, then I can see how you would go for this promotion. However, knowing that the cost is coming from commissions, then everyone but the home seller is benefitting from this promotion. Another piece of this is the giant that is Amazon. They are the gatekeeper to this promotion. So what are they doing with all of your information? How far do they plan to go with their home services platform? Only time will tell.
Disclaimer: We are not claiming that we believe Flat Fee Realtors are better than Traditional Realtors. However, it is another option for those who are looking to save money on their home sale. As a reminder, Selling Later will not tell you how to sell your home and we certainly do not receive a kickback if you use certain companies. We are just here to give you the information and let you make the decision.