With real estate markets weakening and prices levelling off, it’s more important than ever to preserve equity when selling a house. The difference between the 2% charged by insurgent broker REX and the 6% charged by traditional brokers can be substantial and provide the wiggle room needed to get a deal done.
For example a seller would net the same profit selling a home with REX for $675,000 as they would selling the same home for $700,000 with a traditional agent. This leeway allows sellers to be more competitive in a slow market without losing valuable equity at close.
REX, which got its start in 2015, is the first full service license real estate brokerage to use AI and big data to successfully circumvent the antiquated Multiple Listing Service (MLS) system used by traditional brokers. REX technology efficiently matches buyers and sellers online and, together with its expert staff, reduces the complexity and stress of the transactional process, passing along the savings directly to its customers.
REX is uniquely positioned to keep sellers whole while making buyers happy. With REX, consumers typically save 60-70% of the fees they’d otherwise pay to a traditional broker. And in challenging markets like today’s, sellers can cut their price and still hang on to more of their precious equity with REX than with an MLS broker.
Government statistics released over the last month clearly indicate the best days of the housing recovery are behind us. 2018 was the weakest year of the past three in terms of home sales. In January, existing home sales fell to their lowest level while median prices grew by only 3% annually for their second month in a row — the weakest performance since May 2012 when the market was still recovering from the crash. What’s more, a recent University of Michigan survey shows that consumers are now less likely to buy a home than at any time in the last decade.
Economists cite several reasons for the market jitters. Although interest rates have come down some, in November they hit their highest level in seven years. The stock market has been very volatile. And there’s still uncertainty over how badly the just-ended federal government shutdown will hurt U.S. economic growth and for how long.
Other factors weigh on consumers’ minds as well. Last year’s federal tax law changes removed the deductibility of local property taxes and reduced the limit for mortgage interest deductions, a particular factor for higher-priced properties. Finally, foreign buying interest in the U.S. has fallen in recent months, particularly from the Chinese — impacting coastal city markets like New York and Los Angeles
REX agents are seeing more sellers reducing prices to stay ahead of any further market deterioration. And we’ve been applying our using machine learning tools to help them to select optimal pricing to move their property while maximizing the money sellers keep from the sale by keeping our all-in brokerage fee at 2%.
In a sale recently handled by REX in Austin, for instance the seller’s net proceeds from the sale of his $400,000 house was $82,000 once the $300,000 mortgage was paid. Had the seller used a traditional MLS broker, the net proceeds would have been $71,000. For the transaction, REX Austin was delighted to be able to save the seller $11,000.
-Ready to sell your home? See how much you can save with REX –