Rex Real Estate Exchange 2% Sell Commission

I won't post their website link but it's easy enough to search for.

I heard their ads on the radio, they basically say that they don't use the MLS and their commission is only 2%.

Not sure how they can get wide coverage without using the MLS as many of the online sites use the MLS to populate their listings.

Is this "Rexchange" the same company that would do those auction sales and list a home at a  very low price and only have 1 day open house where people register to bid?

irvinehomeowner said:

I won't post their website link but it's easy enough to search for.

I heard their ads on the radio, they basically say that they don't use the MLS and their commission is only 2%.

Not sure how they can get wide coverage without using the MLS as many of the online sites use the MLS to populate their listings.

Is this "Rexchange" the same company that would do those auction sales and list a home at a  very low price and only have 1 day open house where people register to bid?

Click to expand...

So they don't offer a buyer agent commission?  If the listing is not on MLS, it most likely will not appear on the various websites.  That would really will limit their buyer audience.

Ask an "old-timer" in the RE biz about these companies, They come in like a bright comet, and disappear in a carbonized puff. Given the number of buyers Rex may get to see the home versus putting the property on Craigslist, you'd probably end up way ahead just doing everything yourself if net cash in pocked is the primary driver of your marketing decision.

Could I save $15,000 on a million dollar sale by not working with a traditional agent at 3.5% and closing with Rex at 2%? Yes.... but how high do the odds increase for a botched sale, a lower than expected price, a series of ill advised negotiations for repairs that might end up costing me so much more in the end? Does Rex have significant E&O coverage? Do they answer to a board of Realtors, or is binding arbitration required if there are disputes? Might I really save $15,000 in the long run? After examining the plusses and the minuses I doubt the savings are really there.

It's pretty clear that 6 percent commish is unsustainable. Brokers who grudgingly cut their fees to 5% come across like a barely tolerable joke nowadays. Costs pushed in the 4 percent range seems like where the day in - day out quality sales market is headed. Could you see a professionally managed sale process at 1-2%? Sure. You can find quality merchandise at Marshalls if you take the effort to sort through everything. Personally speaking there are better ways to spend my time than poking through a haystack trying to find the needle.

If they can work the usual startup kinks out and get a few hundred independent reviews under their belt, they may have something attractive. Time will tell, but given past performance of these kinds of companies, the clock is ticking.

My .02c.

SGIP
 

USCTrojanCPA said:

irvinehomeowner said:

I won't post their website link but it's easy enough to search for.

I heard their ads on the radio, they basically say that they don't use the MLS and their commission is only 2%.

Not sure how they can get wide coverage without using the MLS as many of the online sites use the MLS to populate their listings.

Is this "Rexchange" the same company that would do those auction sales and list a home at a  very low price and only have 1 day open house where people register to bid?

Click to expand...

So they don't offer a buyer agent commission?  If the listing is not on MLS, it most likely will not appear on the various websites.  That would really will limit their buyer audience.

Click to expand...

I think it's 1% buyer and 1% seller (or maybe more to the buyer).

irvinehomeowner said:

USCTrojanCPA said:

irvinehomeowner said:

I won't post their website link but it's easy enough to search for.

I heard their ads on the radio, they basically say that they don't use the MLS and their commission is only 2%.

Not sure how they can get wide coverage without using the MLS as many of the online sites use the MLS to populate their listings.

Is this "Rexchange" the same company that would do those auction sales and list a home at a  very low price and only have 1 day open house where people register to bid?

Click to expand...

So they don't offer a buyer agent commission?  If the listing is not on MLS, it most likely will not appear on the various websites.  That would really will limit their buyer audience.

Click to expand...

I think it's 1% buyer and 1% seller (or maybe more to the buyer).

Click to expand...

Ok so let's think about how it might play out.  You have 2 of the same floor plans in the same village for sale and both are listed for the same price.  One is using Rex and the other a agent where they offer a 2.5% commission to the buyer agent.  Which property do you think the buyer agent is going to "nudge" their client towards and which one will get more showings/traffic?  The key to getting a good offer/s for a home is eyeballs...eyeballs turn into traffic...traffic turns into offers...offers turn into getting the home sold.

I think more people should look at flat fee listing services, especially if it is an empty property that you are selling.  That means you would need to figure out paint and repairs that you should do, what to price it at, know how to take some good pictures and write a decent description.  The flat fee agent will provide the lockbox and most importantly get it on the MLS.  The rest of the work is done by the buyers agent who will show the house and get it sold.  Then you spring for a transaction coordinator which these flat fee places offer and the paperwork and all the disclosures are done properly.

I have heard agents say they are master negotiators and that they can get you more but really in markets like Irvine, prices track price per sq ft pretty well. 

rkp said:

I think more people should look at flat fee listing services, especially if it is an empty property that you are selling.  That means you would need to figure out paint and repairs that you should do, what to price it at, know how to take some good pictures and write a decent description.  The flat fee agent will provide the lockbox and most importantly get it on the MLS.  The rest of the work is done by the buyers agent who will show the house and get it sold.  Then you spring for a transaction coordinator which these flat fee places offer and the paperwork and all the disclosures are done properly.

I have heard agents say they are master negotiators and that they can get you more but really in markets like Irvine, prices track price per sq ft pretty well. 

Click to expand...

I would love to see a review on a flat fee listing service from someone who has used a traditional agent in the past.  There are a lot of variables to consider and it's tough to gauge how well one of these flat fee listing services would work out.  Luckily, the selling agent commission has been going down in the past 10 years or so.  From the traditional 3% down to 1.5% (Redfin).

rkp said:

I think more people should look at flat fee listing services, especially if it is an empty property that you are selling.  That means you would need to figure out paint and repairs that you should do, what to price it at, know how to take some good pictures and write a decent description.  The flat fee agent will provide the lockbox and most importantly get it on the MLS.  The rest of the work is done by the buyers agent who will show the house and get it sold.  Then you spring for a transaction coordinator which these flat fee places offer and the paperwork and all the disclosures are done properly.

I have heard agents say they are master negotiators and that they can get you more but really in markets like Irvine, prices track price per sq ft pretty well. 

Click to expand...

Unfortunately if you don't properly incentivize the agent they'll just go through the motions with a flat fee model.  The commission that a listing agent gets paid should be based upon performance against a performance benchmark.  It's all about aligning the interests of the listing agent (to make the most commission possible) with the interests of the seller (to get the highest price possible as quickly as possible).  It's similar to how management will incentivize their employees to do what they want.  The 5%/6% commission model is old, broken, and tired with a need of a complete overhaul but unfortunately most agents are nothing more than sheeple drones just following the heard because they think out of the box so they continue with what they know.  I know that I'm doing my part to change things on the listing side and my sellers find it very innovative and refreshing. 

USCTrojanCPA said:

I know that I'm doing my part to change things on the listing side and my sellers find it very innovative and refreshing. 

Click to expand...

You, IR, and others are leading the change by utilizing new pricing models, providing data and transparency, etc.  To be clear, I am not against utilizing experts.  I think its important to understand what you are paying for and then making the decision.  So many people see real estate transactions as black boxes when the transactions, esp in areas like Irvine, are very standard and similar.

USCTrojanCPA said:

irvinehomeowner said:

USCTrojanCPA said:

irvinehomeowner said:

I won't post their website link but it's easy enough to search for.

I heard their ads on the radio, they basically say that they don't use the MLS and their commission is only 2%.

Not sure how they can get wide coverage without using the MLS as many of the online sites use the MLS to populate their listings.

Is this "Rexchange" the same company that would do those auction sales and list a home at a  very low price and only have 1 day open house where people register to bid?

Click to expand...

So they don't offer a buyer agent commission?  If the listing is not on MLS, it most likely will not appear on the various websites.  That would really will limit their buyer audience.

Click to expand...

I think it's 1% buyer and 1% seller (or maybe more to the buyer).

Click to expand...

Ok so let's think about how it might play out.  You have 2 of the same floor plans in the same village for sale and both are listed for the same price.  One is using Rex and the other a agent where they offer a 2.5% commission to the buyer agent.  Which property do you think the buyer agent is going to "nudge" their client towards and which one will get more showings/traffic?  The key to getting a good offer/s for a home is eyeballs...eyeballs turn into traffic...traffic turns into offers...offers turn into getting the home sold.

Click to expand...

I understand this, but a good buyer's agent should be working for their client, not just their commission.

In your scenario, if the buyer prefers the home with the lower commission, would you "nudge" them towards the other one?

irvinehomeowner said:

USCTrojanCPA said:

irvinehomeowner said:

USCTrojanCPA said:

irvinehomeowner said:

I won't post their website link but it's easy enough to search for.

I heard their ads on the radio, they basically say that they don't use the MLS and their commission is only 2%.

Not sure how they can get wide coverage without using the MLS as many of the online sites use the MLS to populate their listings.

Is this "Rexchange" the same company that would do those auction sales and list a home at a  very low price and only have 1 day open house where people register to bid?

Click to expand...

So they don't offer a buyer agent commission?  If the listing is not on MLS, it most likely will not appear on the various websites.  That would really will limit their buyer audience.

Click to expand...

I think it's 1% buyer and 1% seller (or maybe more to the buyer).

Click to expand...

Ok so let's think about how it might play out.  You have 2 of the same floor plans in the same village for sale and both are listed for the same price.  One is using Rex and the other a agent where they offer a 2.5% commission to the buyer agent.  Which property do you think the buyer agent is going to "nudge" their client towards and which one will get more showings/traffic?  The key to getting a good offer/s for a home is eyeballs...eyeballs turn into traffic...traffic turns into offers...offers turn into getting the home sold.

Click to expand...

I understand this, but a good buyer's agent should be working for their client, not just their commission.

In your scenario, if the buyer prefers the home with the lower commission, would you "nudge" them towards the other one?

Click to expand...

Unfortunately, most agents will steer their clients towards the higher commission homes. 

If my buyers prefer the lower commission home then that's the one that we go after.  I show my clients the buyer agent commission % on the listings that they are interested in because it impacts the commission rebate that I provide (along with being more transparent).  It's never about how much I make on one transaction, it's about getting all their future referral and repeat business...that's where the money is made.  Today, about 2/3 of my business is repeat and referral business.