Since launching in May 2015, we’ve had many people who are new to the REX model ask “Are you a discount brokerage like Redfin?” Since we address this question so often, we thought it made sense to discuss the topic in a blog post.
Every major city has at least one discount real estate brokerage. Some claim to be disrupting the industry with low fees; others promise a better way. Redfin is the one large, national example. Though these firms each tout their own unique flavor, their core characteristics are quite similar in nature and typically sound something like this: discounted commission or a flat fee for sellers and possibly a rebate for buyers.
However, unlike REX, these brokerages list their homes on the MLS. And many sellers are not aware that MLS rules require them to pay a buy-side agent a commission. Listing on the MLS means several things to them including inflated costs, an antiquated process and an experience that is agent-driven rather than consumer-centric.
Here are the 5 key differences between the typical discount-broker model and the differentiated value REX offers:
So how is REX able to offer superior marketing, white glove service, greater transparency, and a simpler process for only 1%? It’s simple: REX designed a technology platform to empower our buyers and sellers and advance the real estate experience into the 21st century. The MLS keeps fees artificially high by requiring buy-side broker payments, so we go around it. Moreover, the traditional 5-6% commissions and even the discounted 4-4.5% are excessive for the work required, especially when buyers are finding homes online and sellers prefer to communicate via mobile phones. Simply put, we developed the REX platform so our buyers and sellers can pay less from now on.
If you have worked with REX and/or a discount broker and want to share your experience, we would love to hear about it!
*Minimum fee of $9,000, regardless of home price. This is the minimum we have to charge because of the unprecedented amount of marketing we do for every single home.