REX is a full-service brokerage but, unlike the traditional real estate offering, we’ve moved the real estate experience into the 21st century. This is beneficial for both buyers and sellers who are looking for a simpler, more transparent process and, most importantly, one that will save them tens of thousands of dollars.
Since we’re always getting asked “How are you different from a traditional real estate brokerage?”, we thought it made sense to discuss the topic in greater depth in a blog post.
Here are 4 key differences between REX and the traditional brokerage model:
1. Sellers don’t pay the buyer’s agent fee
In traditional real estate, sellers typically pay an agent a 2.5 – 3% commission to list their home and receive a suite of marketing and other dedicated services to attract buyer’s agents. The catch is, they’ll also end up paying a 2.5 – 3% commission to the agent that brings in the successful buyer. That’s a whopping 5 – 6% in fees baked into the sale price.
We believe this is an unfair and excessive amount for sellers to pay for the work required, especially when buyers are proving they can find homes themselves online and don’t always require a buyer’s agent for the legwork. Even the 4 – 4.5% commission charged by discount-brokers like Redfin is excessive in proportion to the level of service they offer.
In comparison, REX charges a flat commission starting at 2%, a substantially lower rate than the traditional model. We also offer a 50% rebate of the buyer’s agent commission to buyers who use one of our agents to purchase a home that’s not listed with REX. The difference is clear, with REX you can save tens of thousands of dollars in fees.
2. Faster sales than the MLS
Traditional real estate companies list homes on the multiple listing service (MLS) which is a complete database of agent and broker-listed homes. The MLS is specifically used by real estate agents and brokers and has comprehensive data about a home that’s for sale.
The problem with the MLS is that it’s an antiquated tool that keeps buyers and sellers dependent on agents. Agents and brokers are the only ones who have access to the closed database system, and this restricts buyers seeing which houses are for sale. Although agents charge sellers 5 – 6% in commission fees for the privilege of being listed on the MLS, it doesn’t mean a house listed on there will sell any faster either. In fact, with all the paperwork and telephone tag a buyer has to go through just to view a home, it can be an arduous and frustrating process.
REX, on the other hand, can sell homes 30% faster than MLS-listed homes in the same areas simply because we bypass the MLS. Instead, we market each home individually on our website and use artificial intelligence and machine learning to identify buyers and match them with suitable homes rather than go through realtors. By cutting out the middleman, we save sellers tens of thousands of dollars and buyers a whole lot of hassle.
3. Direct communication
When a traditional real estate broker is involved, the house selling process can be overly complicated. Buyers can end up going around in circles with sellers’ agents and waiting for days to view a house they’re interested in. When someone is interested in putting in an offer there are likely to be numerous emails sent between parties and lengthy documents to fill in.
REX understands that 90% of buyers start their house hunt independently using search engines, or home sites like Zillow or Trulia. We also understand that it can be frustrating to play telephone tag or get bogged down in paperwork. After all, you’ve seen the house you like, so why can’t you just view it or get your questions answered in a timely fashion?
Luckily with REX potential buyers don’t have to wait days for an agent to get back to them to book a viewing. They can schedule a time online and ask questions directly to the seller by clicking the “Ask A Question” button, or asking REX directly if they prefer.
We also have a streamlined “Indication of Interest” offer form which allows buyers and sellers to act more quickly and put in a formal offer without filling in mountains of paperwork. Our model uses tech-forward thinking and direct communication which not only results in a less stressful experience for buyers, it also helps sell homes quicker.
4. More transparency
Buying and selling a home involves a large financial transaction so with this much money at stake you want to make sure you’re represented by the right agent who can guide you through every step of the way.
A traditional real estate brokerage typically provides a full-service offering, managing all the necessary steps required during escrow and closing by using paper documents, telephone, and email communication. However, clients are one step removed from what is happening and have to rely on their agent to keep them informed. This can be challenging and anxiety-inducing due to the downtime between replies.
REX also provides a full-service offering, just like a traditional real estate broker. We manage the necessary steps and documents required during escrow and closing, and we have trusted relationships with providers for mortgage and insurance services. A dedicated, licensed REX agent guides you through each step of the way, ensuring every transaction is undertaken in a timely manner.
However, unlike some traditional real estate brokerages, we use online documents and digital signatures to speed up the process (though some escrow documents still must be signed on paper). Buyers and sellers also have a personalized dashboard that gives them full visibility into the process, notification of key happenings, and the ability to view and sign legal documents digitally from any device, anytime, anywhere.
So while our clients still get a full-service offering, the process of buying or selling a home is a lot quicker, convenient and more transparent, instead of being stressful and complex.
We hope this clears up some of the confusion around how we’re different to the traditional model but please do give us a call or drop us an email for any questions about REX. Interested in buying or selling a home? We would love to help!