More home buyers and sellers are foregoing traditional agents than ever before. According to the annual J.D. Power Home Buyer/Seller Satisfaction Study, digital disruption in the residential real estate industry is posing significant challenges to traditional agencies. The study, now in its 11th year, found that “more home buyers and sellers than ever are using digital channels to find an agent, research inventory and, in many cases, bypass traditional agents.”
One of the key findings of the study is the trend of buyers utilizing alternative options when shopping for a new home. A significant majority (88%) of home buyers are beginning their search for a new home before selecting an agent. Also, 19% of repeat buyers and 13% of first-time buyers did not use an agent to buy their home, a number that has grown steadily during the past two years.
“As the leading digital alternative to traditional real estate agents for both home buyers and sellers, we are encouraged but not surprised by the findings in the J.D. Power report,” says REX CEO Jack Ryan. “REX was founded because both home buyers and sellers were tired of the exorbitant commissions associated with the traditional agent model and looking for a 21st century experience. We are excited to be on path to have listed over $1 billion in homes.”
That modern experience also includes utilizing both digital and social media channels. The JD Power study concluded that “buyers, mainly first-timers, are utilizing social media to find their new home.”
“For too long, traditional agents have gotten away with slapping a listing on the MLS and passively waiting for another agent to bring them a buyer,” say Ryan. “But in 2018, that’s not enough. REX is pioneering the way real estate is bought and sold by utilizing real-time data, emerging technologies, and digital targeting. By doing this, we are saving buyers and sellers tens of thousands of dollars and reducing fees by 70%”.
REX charges a 2% all-in fee, versus the 5.5-6% for traditional agents, and the 4-5% fee for firms such as Redfin, which frequently advertises a low “listing fee” but hides other fees and commissions in fine print. REX is currently operating in California, New York, Colorado, and Texas with expansion to New Jersey coming soon.