Beginning in February and culminating in April 2020, REX’s virtual home tour feature saw a 940% increase as potential homebuyers sought out listings on the company’s virtual platform.
Northwestern University economist Ben Harris recently chatted with REX’s Director of Analytics and Senior Data Scientist Chris Holloman about the impact COVID-19 might have on real estate market trends and innovation moving forward. The discussion touched on why the digital push might be taking off right now.
“Americans have never spent more time in their homes than they have in these last three weeks,” said Harris. “It may have some people thinking about the product they live in. I wonder if it will change the way they value their product versus another.”
A snapshot of the month of March showed particularly strong growth rates at a time when Federal, state and local directives to shelter in place or practice social distancing were in place to combat the spread of coronavirus (COVID-19). Week over week growth rates included: 10% for the week ending March 7th, 11% for the week ending March 14th, 38% for the week ending March 21st, and 45% for the week ending March 28th.
“This is a real proof point for our business model. Our goal has always been to connect buyers and sellers while providing the fullest service, lowest cost, and safest process in the industry,” said Jack Ryan, Co-founder & CEO at REX. “It is particularly meaningful for us to virtually serve consumers when home equity is so important in this moment.”
REX matches buyers and sellers directly. Here is how it works. For sellers, REX charges a total fee as low as 2%, instead of the 5-6% charged by traditional brokers. For buyers, the REX advantage is simple. When buyers purchase a home from REX, they never pay a commission. If buyers purchase an MLS home through REX, they receive back 50% of the MLS-required fee. This translates to tens of thousands of dollars saved for clients on both sides of the real estate transaction.