Realogy Holdings Corp. has announced an agreement to create a new real estate benefits program for AARP members. Expected to launch nationally in early 2020, this will be the first-ever real estate services program designed for the nearly 38 million AARP members. The new offering will allow AARP members to earn a cash back reward or bonus* when they buy or sell a home with one of Realogy’s residential real estate brands, including Better Homes and Gardens® Real Estate, Century 21®, Coldwell Banker®, ERA® and Sotheby’s International Realty®.
The population of Americans over the age of 50 continues to grow and represents one of the most active generational groups for U.S. home-buying and -selling. According to the U.S. Census Bureau, there are approximately 113 million Americans over 50, and this age group is expected to grow by another 16 percent (or nearly 18 million people) by 2030. In its 2019 generational trends survey, the National Association of REALTORS® (NAR) reported that those over 50 made up nearly 40 percent of homebuyers and the largest group of home sellers (55 percent).
“With millions of adults over 50 buying and selling homes each year, we are excited to develop a unique benefits program that guides and rewards AARP members during another important milestone in their lives,” says Ryan Schneider, Realogy’s chief executive officer and president. “This is a great example of Realogy leveraging our tremendous scale, world-class brands and deep market expertise to forge new relationships to drive more high-quality leads for our affiliated agents and franchisees and to benefit AARP members.”
“For many older Americans, relocating to a new home is part of a major life stage transition, such as retiring, downsizing or changing jobs,” says John Larew, SVP of Branded Products at AARP Services Inc. “The real estate program from Realogy is designed to help AARP members successfully navigate that transition, while saving money in the process. It’s part of AARP’s commitment to empowering people to choose how they live as they age.”
“Realogy has deep roots in serving agents and owners with tools, technology and marketing to make agents more productive and profitable,” says Realogy Franchise Group President and CEO John Peyton. “Whether it’s AARP or Amazon or Home Partners of America, large national partners offer agents a way to get closer to the consumer in a way that I think only Realogy can.”
*The cash back bonus is offered in most states. In some states, a gift card or commission reduction at closing may be provided in lieu of the cash back bonus. The program is not available for employer-sponsored relocations or transactions in Iowa or outside the United States. The cash back bonus is not available in Alaska, Louisiana and Oklahoma. In Kansas and Tennessee, a MasterCard MAX gift card will be issued. In Mississippi, New Jersey and Oregon, a commission reduction may be available at closing. The cash back bonus is only available with the purchase and/or sale of your home through the use of a program-introduced real estate agent. The actual amount received is based on the purchase and/or sale price of the home. All real estate commissions are negotiable. Other terms and conditions may apply.
For more information, please visit www.realogy.com.
I am a Realtor who is not employed by a Realogy brand.
I will not be using this program.
I will not be renewing my AARP membership.
What were you thinking?
Geez. In our pocket again.
This is more of Realogy brands getting in the pockets of agents. The agents all take the hit on this. How will this work ? Add in the other hits that agents take to be part of the brand including relocation and less and less dollars go to the agents that work this. Not cool.
Thank you Realogy for being proactive and providing incentives for new business streams.
lets all move to Iowa and teach them a lesson
AMEN! more of the same…keep stepping on the little guy…keep promoting the big guys and wonder why ordinary folks are loving the wealth tax
Another way for you to take money away from REALTORS. And, since I am not an agent with any of the above listed brokers, you are discriminating against some agents. Very disappointed that more and more of third parties–like you–are doing this!
Wow! This presents a terrific opportunity for agents associated with Realogy brands to capture significant new business which might otherwise go elsewhere. And it targets one of the fastest growing demographics in the country. Well done.
This is a discriminatory practice as it this program is not available to REALTORS other than those selected by Realogy/AARP. Since I am not licensed with the “select” brokerages, I am not eligible for this — another example of putting the squeeze on the REALTOR institution. As the agent above stated: what were you thinking?
Given that Realogy takes a WHOPPING 50% of the commission and caps the split at 70%, this is a terrible deal for its certified relocation agents. I dropped out of the program as I was tried of the massive $$$ grab. Be grateful that you’re not a part of this crappy program — it’s a terrible deal for agents. Shame on Realogy for this blatant self dealing.
What is the National Real Estate Association saying about this? Will it be available in Puerto Rico?
Since AARP is an insurance agency now, I guess it will also be a real estate agency. Curious how much AARP is getting for alliance. As well as what top management are salaried.
Sorry to hear all the negativity from agents. As with any lead, agents have a choice whether or not to accept it. Any lead is business you wouldn’t have otherwise. So, don’t accept it and find other business, or work the lead, pay the referral, and keep a customer for life in addition to the future referrals you will get. New business is good business.
I am a Realogy Brand franchise owner. Interesting comments. I’m neither for, nor against – just adding some things.
Given what little I know about buying leads from sources (such as Zillow), I really wonder what the paid Lead cost vs closed lead would equal? I’m wondering if 40% is really that far off?
The next piece of the puzzle? Zillow says about 45% of consumers in areas that have iBuyers have asked for a quote. Yet those same areas are only getting about 2% of the market actually accepting offer. So how long before Zillow starts offering those leads. Or companies like Opcity that want 40%?
We can play the game offered, we can work to change the rules by creating a new game, or we can remember what it used to be. The internet has changed everyone’s lives. Not the 70’s any more.
I do not restrict my benefits to one group of people. I offer to list at 4.5% for all sellers and offer 1% of a home’s purchase price for closing costs. I am at a 100% office of HomeSmart so have flexibility. During an open house of a $400,000 home and seeing that at 6% the seller was giving up $24,000 of equity. It seemed exploitive when with the short supply, homes sell in 30 days when priced at the market and clients doing their own searches. Both reduce the time spent for a sale.
This just sounds like a way Realogy brands are becoming a discount brokerage without directly acknowledging it.
CostCo, Walmart, Target will be working on the same program as AARP. Of course
JPMorgan Chase – $2.74 Trillion. …
Bank of America – $2.38 Trillion. …
Citigroup – $1.96 Trillion. …
Wells Fargo & Co. …
Goldman Sachs – $925 Billion. …
Morgan Stanley – $875 Billion. …
U.S. Bancorp – $475 Billion. . will really like the idea to get into this program with Realogy.
Totally opposed to this idea. Past President of the Association of REALTORS of Bucks County and a former delegate to the Pennsylvania Associations of REALTORS. Member of AARP. I will consider cancellation of my membership with AARP. Please do not share my commission with people who are not licensed.
Discount commissions usually equal discounted service.
How is this allowing over 50s to “successfully navigate that transition” any better than Realtors are already doing, other than offering them a discount? Do you think people over 50 don’t know how to purchase and sell real estate?
Remember the old adage – you get what you pay for.
To all the agents making negative comments about this really good program, you need to keep up with the times. Do you know what Redfin does and why it is so popular and taking all our clients? If not you need to find out and understand what it takes to get and keep a client in the Bay Area of Calif. We also have to compete with another company’s agents who work for 1%
Sorry I can’t just give you a link but you would need to be a member to access. How is this going to benefit AARP Members in AA County?
LOCAL UPDATE—Bill No. 55-19 FAIR HOUSING BILL
Dear AACAR Member,
On September 3rd, the Anne Arundel County Council passed Bill 55-19. Effective October 27, 2019, there will be seven additional protected classes in Anne Arundel County above and beyond the Federal and Maryland protected classes of Color, Disability, Familial Status (i.e., having children under 18 in a household, including pregnant women), National Origin, Race, Religion, Marital Status, Gender Identification or Sexual Orientation.
The additional protected classes are: Age, Ancestry, Citizenship, Gender Expression, Creed, Occupation, and Source of Income.
The bill prohibits a person who sells or offers to sell, rents or offers to rent, or controls, constructs, or manages housing from discriminating by: (1) including in notices or advertisements a preference or limitation with respect to a member of a protected class; (2) representing to a member of a protected class that housing is not available when the housing is in fact available; (3) refusing to negotiate for the sale or rental of housing to a member of a protected class; ( 4) refusing to sell or rent housing to a member of a protected class after the making of a bona fide offer; (5) refusing to make housing available to a member of a protected class; (6) restricting the terms of the sale or rental of housing to a member of a protected class; (7) restricting the provision of services to a member of a protected class in connection the sale or rental of housing; (8) including a discriminatory restrictive covenant in a document relating to the sale or rental or housing; or (9) honoring or enforcing a discriminatory restrictive covenant.
“Discrimination” means acting, failing to act, or unduly delaying action regarding a person because of age, ancestry, citizenship, color, creed, disability, familial status, gender identity or expression, marital status, national origin, occupation, race, religion, sex, sexual orientation, or source of income in such a way that the person is adversely affected in the area of housing.
AACAR has been advised by NAR Legal Counsel that because occupation is a protected class, it would be inadvisable to continue to offer incentive/rebate programs that favor one occupation over another and that continuing to offer incentives/discounts that favor police officers, firefighters, teachers, active military, or any other occupation could run afoul of the new fair housing law.
Additionally, there are many changes that come with lawful source of income as a protected class. Any advertisement, publication or application which expresses, directly or indirectly, any limitation, specification or discrimination as to lawful source of income such as “No Section 8” or “No Programs” is specifically prohibited. Further, owners, landlords, property managers and rental agents are no longer permitted to refuse potential tenants’ applications who receive any type of lawful housing assistance such as Section 8. However, the law specifically states that “source of income does not include the determination of a person’s ability to pay a purchase price or to pay rent, which is determined by such reasonable and customary standards as verification of income and its source, the creditworthiness of the renter or buyer, and the creditworthiness of the source of income.”
Small firms don’t have the resources to offer incentives like the large firms. This simply means that small firms will continue to disappear. Small independent businesses are the backbone of any well-functioning democratic republic. Unfortunately, all the financial benefits are rising to a small percentage of the business world. if you don’t believe that, read “The Myth of Capitalism: Monopolies and the Death of Competition” by Jonathan Tepper and Denise Hearn. Tepper worked as a hedge fund analyst and a trader. Both authors are pro-competition, but not pro-big business. Their main point is that capitalism with competition is not capitalism. This is a worthwhile read.
In the end all realtors have become discounters, Realogy is just taking the agents money and giving it back to the consumer while a discounter like Assist 2 Sell and Help U Sell doesn’t take it up front at all they just give the consumer the money right up front. All agents need to look at their bottom line because at the end of the day no one and I mean no one goes around hunting BIG BOX REALTY they hunt us the agents. Franchising are no more than middle men taking a cut.
Arguably the #1 Paper WASTER and JUNK MAIL Co in USA = AARP
No Way Jose!
It seems to me that this offer from Realogy to AARP members discriminates on the basis of age – you must be over 50 to be a member of AARP. IS this lawful? If so, should it be?
In the big picture, Realogy and all the national franchises take money from agents and line their own pockets while the benefit to brokerages and consumers is minimal. The truth is that neither the consumer nor the agent/broker/brokerage benefit from franchises. EVERY real estate licensee in the country should DUMP their FRANCHISE. My bet is that their business would not decline, their expenses could be reduced by not paying franchise fees and royalties, and they could better serve both consumers and agents. The real estate industry did just fine for 200 years without franchises!