At its core, REX Real Estate is an alternative to selling on the multiple listing service (MLS) with a traditional real estate agent.
What is one of the biggest complaints when selling a home with an agent? High commissions rank right up there. Usually, it’s the number one complaint. $30,000 to a real estate brokerage to sell a $500,000 is way too much for many of us. This is especially true in 2018 now that information is so easily shared.
See my previous post that explains how real estate agents get paid.
A common fee from a real estate brokerage is 5% to 6% of the final sale price. REX Real Estate can sell your home for only 2%. That is a total fee. Redfin and other discount brokerages advertise fees lower, but those are the listing fees, not the total fee. If you list a home on the MLS, the agent bringing you a buyer gets a commission, typically half of the total fee. REX Real Estate explains how they compare to Redfin in their blog.
REX Real Estate Avoids the MLS
The way they can offer this lower fee is by bypassing the MLS and avoiding the need to pay a buyer’s agent commission. Watch the short video below to see how REX Real Estate offers full service at a fraction of the traditional commission.
They leverage artificial intelligence, big data analytics, targeted social media marketing, and robots to find and service home buyers. A proprietary algorithm targets buyers directly based on geography, income, life stage, and the likelihood of interest.
Since 90% of buyers begin their home search on the internet, REX Real Estate lists your home on all of the main digitals channels including, Zillow, Trulia, Google, Yahoo Homes, Bing, and more. In effect, REX Real Estate is creating its own marketplace for home buyers to connect with home sellers outside of the MLS.
Rather than publishing a listing on your local MLS and hoping a buyer finds your home for sale, REX employs computers to crunch over a hundred thousand data points in order to identify the most the likely buyers. Once the buyers are identified, REX targets them with ads on websites and social media platforms.
Real Estate Agents are Freaking Out
Real estate agents get paid by representing both home sellers and home buyers after the completion of a real estate transaction. When a company comes in and offers a full-service alternative that excludes a buyer’s agent, traditional agents freak out. Right now, this services is limited to certain metro areas. But, REX plans to expand into new markets.
A licensed agent from REX will help you list the home and show it to prospective buyers. Once you have an accepted offer from a buyer, the agent will complete the transaction with you. This does not sit well with some traditional agents.
An agent based in Burbank, CA, Richard Buckisch, attempts to call out REX Real Estate on YouTube. He trolls REX’s broker of record Steve Dawson, since Mr. Dawson listed five properties on the MLS in 2017. You can sense fear and anger in Mr. Buckisch’s comments. This exchange on YouTube underlines how traditional agents are freaking out at the thought of disruption:
They condemn the mls as being outdated and a thing of the past, yet the broker of record Steve Dawson has listed 5 properties on the mls in 2017. I posted this on their facebook page and they blocked me. Apparently they dont like to be called out on the hypocrisy.
REX Real Estate:
Hi Richard – Thanks for reaching out again. We appreciate your concern with REX and clearly it has prompted to you to seek us out on multiple channels. You are correct, our broker of record does have a few listings shown on the MLS. This was something we did for special cases at the sellers request early on in our company history – it is no longer something we do. While you would like to focus on those few listings, we would like to focus on the over 300 homes we have listed this year outside the MLS, and the over 50 five-star reviews from buyers and sellers on Zillow. Good luck going forward.
Those listings are all in 2017, per your website REX was launched in May 2015! In my opinion I find it hypocritical that you market the mls as being antiquated and a thing of the past but your broker still lists properties there, so yes I am going to call you out for that. If it’s so outdated and Rex is so fabulous you should have zero problem getting those clients to list on Rex. Yes you have some decent reviews but compared to the size of the company I dont know how impressive that is. Consumers get so caught up in the potential savings but may fail to take into account all the money they lose by lack of exposure on going through a site like yours. Your company also touts how it sells faster for more money, yet I see several of your properties sitting that are priced below the average market prices for their perspective areas which in turn costs sellers carrying costs which I suspect many people don’t take into account when considering selling costs. Another big issue with the platform is the age old issue of dual representation. How does a buyer potentially get the best price possible when Rex is hired as as listing agent and the buyer is not allowed to have their own outside representation? The other big issue is real estate sales is far more than putting a post in the front yard, the biggest value an experienced agent brings is contract knowledge which in turn keeps their client out of court. I have seen several situations where unknowledgeable agents get their clients into slippery situations because they don’t know the legality of contracts and the clients end up getting sued. I think its important consumers take all of these issues into account before deciding which direction to go. If you have so much confidence in your model, I question why you blocked my from your facebook page. The truth hurts, eh?
REX Real Estate:
Richard – Thank you again for your post. We are extremely busy helping our clients at the moment, and realize that changing your mind is an uphill battle given your stake in the traditional real estate model and collecting 6% commissions. We will continue to believe and share with customers the advantages of listing with REX and as always, will allow them to make the final decision. Please feel free to leave your email address so that we can include you on all the amazing company updates we have coming in 2018!
nice response, you address none of the valid points I brought up and regarding commission, if an agency puts a sign in the front yard and makes a few internet posts, they deserve the 2% you charge. Clearly you dont understand the true value of an experienced agent, you know, the one writing the legal documents…in any event, my point was to call you out on the fluff advertising, I think I made my point. If a seller thinks a commission percentage is all that is involved in what they net and if buyers think they can get true, bonafide representation in a deal where the agency forces dual agency on their listings, then more power to those people. As they say, ignorance is bliss…..
Rather than Comment, be the Better Agent
Remember people, when you post comments like this online, it’s out there forever. Make sure you comment with a clear head and don’t let your emotions get the best of you. Change is inevitable, so it’s best to focus on being better rather than leave nasty comments online. If you are an agent that truly feels you can outperform AI using traditional methods on the MLS, then focus on that and let the market decide.
Automation of Real Estate Transactions
The website, Will Robots Take My Job, predicts that there is a 86% chance of automation for real estate agent jobs. Jack Ryan, the CEO, and co-founder agrees. REX Real Estate is implementing the use of AI and robots to automate the real estate process. Ryan sees more tasks in the real estate process getting automated, which will provide additional efficiency and cost reductions.
Only time will tell how AI will change the real estate industry. If you think things will continue like they have when there was an MLS monopoly, you’re going to be in for a surprise. A change will happen. How much will change? We shall see.
In the vain of Tom’s One for One® principle, for every 50 homes, REX Real Estate sells, they donate a home to a family in need. This is an amazing program that started in Cambodia and then expanded into Colombia. At the time of this writing, the seventh donated home is under construction.
Get Started Today
You can get full service at a lower fee, give back to those in need, and maybe work with a robot? Sign me up! If you are buying a home from REX, they also have a 30 day buyback guarantee. If you are considering selling your home, it’s worth a least a look at REX Real Estate. They offer their services across all major Southern and Northern California metros, as well as in Denver, Austin, San Antonio, and New York. Visit their website to see if your home qualifies.