Sun Microsystems Co-Founder and REX investor, Scott McNealy sat down with Kelly Evans of CNBC’s The Exchange to talk about how REX is fundamentally changing the residential real estate industry.
Transcription:
CNBC Reporter:
Interesting transition to your effort in real estate right now, which is fascinating because you know, every realtor in this country uses the MLS listing system. We’ve all looked for houses that way and you’re saying it doesn’t have to be that way. I’m going to undermine it and go around you. How’s this going to work if what you do works on the large level?
Scott McNealy:
Well the MLS and those little signs they put up Sunday afternoon in front of driveways is sort of the equivalent of raising your hand to try and hail a cab. We’ve moved to Uber and what we’re doing here is providing a cloud based services environment where you can sell your house, you can use our AI and big data engineers to match buyers with sellers to find the right price and to simplify what is very stressful and complex and I mean the crazy paperwork you do to sell a house. We’re putting that, we’re automating that, we’re making it a very, very simple and we’re cutting the cost of selling a house on average $20,000.
CNBC Reporter:
Well that’s the commission, right? I mean, this entire industry is going to throw the book at you, aren’t they? They must be listening to this going, you better… What are you doing?
Scott McNealy:
All the cab companies threw the books at Uber and what can the little guys do against Amazon? It’s just you’re going to change. If you have a broker in your job title, the internet is going to disintermediate you and that’s what’s going on here. The agents, nothing’s changed on the MLS, the commission structures and in fact, the work has gone down.
Scott McNealy:
Most people go to Zillow or to the web to find their house. They’re not going to the broker and run around and looking for those little signs on the driveway. So I think they’re doing less work for the same amount of money that they were doing pre-internet.
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