30/08/2024
Well, there you have it. The truth always comes out eventually, and here it is. 🤓
The very guy who went after the National Association of REALTORS claiming service fees were fixed, has launched a flat fee (fixed?) a la carte real estate service.
From reading the company website, they’re out to “save you money”, and they even break it down using a $500K purchase.
Average REALTOR commission $15K
This biz, see 5 homes, make 2 offers, $1799
What a bargain! Oh but wait, their site goes on to say you owe them even if those offers are rejected. But you can keep running up a tab to continue your search & make more offers. It also states these are the only services they offer. You have the option to “hire one of our agents” if you actually want any guidance between contract acceptance to closing, this will be additional cost. Oh, and they’re going to refer you to an attorney to push title work & they clearly state that will also be an additional charge - but the attorney will probably charge less than a full service REALTOR. They even have a cartoon video to convey REALTORs are bad for you.
But if you’re doing any Math, ummmm, it sounds like what they’re offering could likely cost way more than traditional representation. It also literally says they are using AI to write the offer, and basically they are just helping you format the contracts but not really advising you. You are representing yourself & this is an assist. So you have no protection on your side of the transaction at all, but you’re saving money.
Oh, the savings part is also dependent on how the listing agreement was written for the seller, which you may never know. See, if the seller agreed to 6%, just because you don’t bring a buyer agent does not guarantee you a discount. More often we see the listing agent keeps all 6% or adjusts the listing agreement to increase seller net.
Essentially you can use this service if you want to do more independently but still spend about the same or more. 🙄
One of the people who successfully sued the National Association of Realtors (NAR) to change real estate commissions has co-founded a new real estate