There is no question that the residential real estate world is expanding. New technology and new business models are providing more and more options to sellers and buyers. But, figuring out which option is right for you can be difficult. In our “Stacking Up” blog series, we hope you find some helpful info regarding how REX stacks up against other non-traditional real estate companies.
Purplebricks is a UK-based real estate company that has recently launched in the United States. The company employs local real estate agents to help clients buy and sell homes. Here’s how REX stacks up to Purplebricks…
-REX charges 2% total in commission fees. Because REX is the only real estate company not using the MLS to sell homes, our sellers are not obligated to pay a buyer’s agent commission. Compared to traditional real estate agents who charge a 6% fee, REX sellers save $25,000 on average.
-Purplebricks charges a flat $3,200 + Buyer’s Agent Fees (Typically 3%). Because Purplebricks still utilizes the antiquated MLS and is set up like a traditional agency, they can’t get away from the 3% buy-side commission. If you were selling a $500,000 with Purplebricks, you would pay $8,200 MORE in fees than you would if you went with REX.
-Not only are you paying more if you sell your house with Purplebricks, but you are also paying more if you don’t sell. Purplebricks forces its sellers to sign a hell-or-high-water agreement that binds them to a $3,200 fee if their property doesn’t sell after 6 months on the market. Purplebricks fails, sellers pay. At REX, we are all about doing right by our customers. We offer a short 3-month commitment option and if your home doesn’t sell, you can walk away without spending a penny.
-REX Agents are salaried employees whose main goal is to sell your house at the best possible price. Because they are full-time employees who don’t get paid on commission, they are truly an advocate for you.
-Purplebricks is not doing anything to change the decades-old commission based model for agents. All of their local agents get paid solely on commission. This means your house is inventory that needs to be moved, no matter what price.
-REX understands that your dream home may not be a home we are currently selling. But, that doesn’t mean we can’t help you in the process. REX offers a buyer rebate for those buyers who find a home outside of REX and use us to execute the deal. In this traditional model, REX would make 3% commission on the deal, but instead of keeping it all to ourselves, we cut you a check for 50% of that commission. If you bought a $500,000 in our program, you would receive $7,500 back.
-Purplebricks offers a similar program, but they only rebate you a flat $1,000.
There are plenty of other ways REX is different than Purplebricks. Learn about the REX difference at REXchange.com.