Sell your home for only 2% powered by AI technology and expert agents

eyephone

Well-known member
This is a game changing platform that will reduce the price of selling a home. Rex real estate only charging 2 percent commission.
https://www.rexchange.com

?The company charges a 2 percent commission instead of the typical 5 to 6 percent that real estate agents charge

Brokerage REX Real Estate Exchange uses artificial intelligence and machine learning instead of real estate agents to sell homes.

REX is one in a number of alternative tech-driven real estate brokerages that charges lower fees and diminishes the role of the real estate agent. That has put downward pressure on agent commissions across the industry.

However, the brokerage said it still employs a team of 22 agents across offices in New York, Austin, Denver and Southern California. Once a buyer or seller agrees to work with REX, a staff member meets with them and serves as guidance during the process, Ryan said.

A REX staffer will also show up at open houses, sometimes bringing along a robot. That robot is programmed to answer 75 different questions, many of which an agent may not know off the top of their head, such as: When was the pool last resurfaced or the roof last replaced? Exactly how long does it take to drive to school??
https://www.cnbc.com/2018/03/20/art...atest-competition-for-real-estate-agents.html


My comment: Do you remember when I mentioned that technology will change the real estate buying process?

 
Burn That Belly said:
The centennials will use this and maybe the tail-end of the millennials. They'll do it from the comfort of their parents' couch.

"Hey son, what'd you do today?"
"Dad, I amassed $300K in down payment from living under your roof the past 10 years. I just put down an offer on a home all right here on my phone"
"Son, did you at least tour the home"
"I sure did. Here, put on these VR goggles."

;D

If this platform takes off it will save people a lot money.
I compare it to trading stocks with an online brokerage. It?s so cheap or free to buy and sell stocks.

 
"Expert Agents" who need AI robots to help? This does not compute.

Here's another RE disruptor, very soon to be operating in Sacramento and Riverside. It's essentially a Relo business model on steroids

They've done surprisingly well in the Phoenix area. With low to mid range price markets using this model, one wonders if it can translate to success in mid to high price markets. Yes, there's a cost, but some sellers will opt for convenience over making every last $$$ count.

https://www.curbed.com/2018/4/12/17221178/opendoor-offerpad-sell-house-online-offers

My .02c
 
Soylent Green Is People said:
"Expert Agents" who need AI robots to help? This does not compute.

Here's another RE disruptor, very soon to be operating in Sacramento and Riverside. It's essentially a Relo business model on steroids

They've done surprisingly well in the Phoenix area. With low to mid range price markets using this model, one wonders if it can translate to success in mid to high price markets. Yes, there's a cost, but some sellers will opt for convenience over making every last $$$ count.

https://www.curbed.com/2018/4/12/17221178/opendoor-offerpad-sell-house-online-offers

My .02c

Those two companies are nothing more than those investors that offer up to buy your home for cash via those annoying letters or signs you see driving except on a larger scale on the internet throwing around the "AI" buzz word. I'm sure there is a place for companies like this in the market, but in a rising/stable market most sellers aren't going to take a discounted "algorithm" offer and give up additional potential gains. An algorithm can't capture the emotional part of buyers who may bid irrationally to buy a home, especially in a multiple offer/counter situation. It's hard to account for human emotion by any algorithm. And they say in a down market they'll charge an even higher fee than 7% which will sting even more. I get what they are doing as some sellers need to sell fast for various reasons that could benefit from their service, but it'll still be a niche part of the overall market.
 
eyephone said:
Burn That Belly said:
The centennials will use this and maybe the tail-end of the millennials. They'll do it from the comfort of their parents' couch.

"Hey son, what'd you do today?"
"Dad, I amassed $300K in down payment from living under your roof the past 10 years. I just put down an offer on a home all right here on my phone"
"Son, did you at least tour the home"
"I sure did. Here, put on these VR goggles."

;D

If this platform takes off it will save people a lot money.
I compare it to trading stocks with an online brokerage. It?s so cheap or free to buy and sell stocks.

When you peel all of the layers away, they are just a listing agent that charges a 2% listing commission and tries to cut out the buyer agent commission out of the equation by selling directly to the buyer.  So does that mean that Rex represents the buyer or does the buyer represent themselves?  Who happens when the buyer is a newbie and hasn't been through a transaction before?  If Rex does represent the buyer, what would happen if CA makes dual agent representation illegal?  My variable target listing commission is below 2% so if I could cut the buyer agent commission out I would be cheaper than Rex. Unfortunately cutting out buyer agents would greatly reduce showing traffic on listings. One thing is for sure, the old commission needs to be revamped in a big way to better align the interests of clients with agents.
 
Rex is particularly annoying with their buzzword phrases like " Rex isn't like traditional agents using the antiquated MLS..." (which they do) and "we use machine learning..." (no, they don't) Blegh.

Niches eventually become mainstream, especially as the selling crowd gets more familiar with tech. The emotional buyer - which is the big majority of the market - will always pick human service providers over doing things "paperless" so Agents aren't going anywhere anytime soon.

My .02c
 
Soylent Green Is People said:
Rex is particularly annoying with their buzzword phrases like " Rex isn't like traditional agents using the antiquated MLS..." (which they do) and "we use machine learning..." (no, they don't) Blegh.

Niches eventually become mainstream, especially as the selling crowd gets more familiar with tech. The emotional buyer - which is the big majority of the market - will always pick human service providers over doing things "paperless" so Agents aren't going anywhere anytime soon.

My .02c

I don't buy Rex's "we use machine learning..." catch phrase unless they can show me that they have hired software engineers/data scientists/quant PHDs or are paying tech firm/s to do it for them (both aren't cheap and would quickly eat away at their 2% listing commission). Honestly, they are marketing to naive real estate sellers who won't ask the right questions about this "machine learning" technology. 

Honestly, I think Rex's model would be better served on the commercial real estate side where there isn't emotional buying and you don't have to deal with MLS and a power lobbying group like the realtor associations.  You could market directly to business owners and not have to throw around "we use machine learning" to find buyers. Hmmm, now that's an idea....
 
eyephone said:
Here are some of the success stories mentioned on the website: (I shortened the testimonies)

- One person selling saved over $40k using Rex. (That?s a lot of money)
- One seller saved $23k (Wow)
- Another person saved nearly $20k (Unbelievable)
https://www.rexchange.com/testimonials

But how much in higher price did the sellers potentially give up because the home wasn't marketed to as big of a buyer pool as possible?  I'm not trying to bust their balls as I do give them credit for coming up with something different and creative. Heck, we all know that most realtors aren't smart enough to think their way out of a paper bag let along come up with a commission model that ins't the standard 5-6% split equally between the buyer and listing agent. haha
 
If I list my house, I would refer Soylent as lender and I will use USCCPA to represent me. Even though I am tech savvy, I still like traditional selling and buying for a peace of mind.
 
Eh, REX is just trying every strategy it can.

This was the group who would list a house for a super low price on the MLS, only have an open house on one day and then take bids "claiming" the highest one would get the house regardless. Which wasn't true because we tried it once, and the few days after, they would call me with what the current high bid is and then ask me to beat it. That irritated me more than "Best and Final". :)
 
TL:DR....how is this different than what Redfin is doing? 

Also...I don't see many agents charging 6% total anymore...most I see are at 4% total...some are at 3% (2% buyer, 1% seller).
 
irvinehomeowner said:
Eh, REX is just trying every strategy it can.

This was the group who would list a house for a super low price on the MLS, only have an open house on one day and then take bids "claiming" the highest one would get the house regardless. Which wasn't true because we tried it once, and the few days after, they would call me with what the current high bid is and then ask me to beat it. That irritated me more than "Best and Final". :)

Your example just proves my point, when you limit showings to buyers you don't end up getting the highest price for the seller. I have this seller in my tract trying the "auction" strategy where he will only show the home during weekend open houses and will be accepting bids until the end of July...
https://www.redfin.com/CA/Tustin/2605-Palmetto-92782/home/4757580

This was the same seller that had listing his home back in July of last year with a dreamer listing price of $1.6m.  After 6+ months, no dice and the home was delisted in Jan 2018.  I bet he and his agent think that they might get close to $1.6m trying this auction/e-bay strategy but it won't work because there just isn't the volume of buyers at that price level in that price range.  The home is probably worth about $1.4-$1.45m and that's only if someone really loves some of the questionable interior upgrades and doesn't mind siding to Tustin Ranch Road.  I hope he gets as much as he can since I have the same exact floor plan.  haha
 
Irvinecommuter said:
TL:DR....how is this different than what Redfin is doing? 

According to REX website:
?Redfin advertises a 1% -2% seller commission, but unlike REX, Redfin sellers are also responsible for paying the buy side agent commission, because the houses are listed in the MLS. This means that most Redfin sellers end up paying 3.5%-5% in commissions. REX charges a 2% total fee.

REX lists and markets homes outside of the MLS, targeting buyers directly by using Big Data and Artificial Intelligence, so you sell faster, with a licensed agent and much lower fees.?
https://www.rexchange.com/compare/Rf
 
eyephone said:
Irvinecommuter said:
TL:DR....how is this different than what Redfin is doing? 

According to REX website:
?Redfin advertises a 1% -2% seller commission, but unlike REX, Redfin sellers are also responsible for paying the buy side agent commission, because the houses are listed in the MLS. This means that most Redfin sellers end up paying 3.5%-5% in commissions. REX charges a 2% total fee.

REX lists and markets homes outside of the MLS, targeting buyers directly by using Big Data and Artificial Intelligence, so you sell faster, with a licensed agent and much lower fees.?
https://www.rexchange.com/compare/Rf

I see but then why have an agent at all?  Just hire an RE attorney to draft the forms for like $1500.
 
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