121–130 of 310 posts
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The ludicrous 6% fee is whats going to drive adoption by end users and in turn by brokers. Move that fee to 1% for buyer agent and you have a massive market.
If there was a serious opportunity to arbitrage under the 6% fee, you bet that someone would have done it already — and well before the AI era.
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lol. it's not too late to delete this. the fact that you don't have the fundamentals together does not inspire any confidence.
I don’t understand, what about this says they don’t have their fundamentals together?
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The target market is the personality of buyer who wants to do self service. Someone who finds houses on Zillow and just gets a realtor at the end. Realtors are paid on commission which means that they want to transact high and immediately. Poor alignment with intent for buyers. We have an offer drafting service on our website where all you need to provide is your email, phone, property, and price and we can go from t…
>> Realtors are paid on commission which means that they want to transact high and immediately This is either naive or disingenuous. Do the math; realtors want to close fast but don't really care about the price the way the buyers and sellers do. The commission difference on a significant gap is not worth losing the deal.
My own realtor convinced me to bid a price that the seller accepted in 30 minutes for my home - immediately == high.
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> But we provide better service. How would a prospective customer know that?
We let you drive your own process and interpret real estate data with AI. We target customers who are looking for these in their Realtor
What does this actually mean though?
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If there was a serious opportunity to arbitrage under the 6% fee, you bet that someone would have done it already — and well before the AI era.
Yes that's what Redfin does actually. And I'm sure a bunch of others.
Hey, can you send your AI agent over to this house I'm looking at and measure out the bedrooms for me? Also, there's tile in the kitchen; was it laid correctly (tile under baseboard) or was it laid badly (burying the bottom of the baseboard)?
Human buyer agents wouldn't do these things that you're asking
How are you preventing hallucinations and plainly false information being sent to buyers engaging in what's likely to be one of the largest financial decisions of their life? Beyond just leading to a bad UX, what's your legal exposure there?
You mention providing comps, there's a LOT of local knowledge that goes into that. How are you automating that? Other solutions I've seen like Zillow are pretty laughable. In some neighborhoods a 2 car garage is worth six-figures despite not contributing to square footage, because pulling permits for a new one is basically impossible, just as one local example.
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Other relators do not put their fee pricing on their websites so we decided to follow suit. We have the same pricing model - negotiable. But we provide better service.
Realtors do in fact list their fees. More and more of them are, especially after the August 2024 changes
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The 6% fee (more normally 5% around these parts, western US) is paid by the sellers, but with the buyer's money. Usually. However, it's important to note that there was never a requirement for anyone to pay anything; it was simply what was commonly put into contracts. The settlement didn't change anything about that in particular. I just sold a house a couple weeks ago. I agreed to pay my seller's agent 2.5% out of t…
The primary driving factor on all these rates is the net take home for the seller. The reason why the total fee of 6% in a 3/3 split is because if this is done, then the seller will net about 10% higher than if they used no realtor. Similarly, for the buy agent half, they will get multiple extra % of home price above that 2.5%. The structure of the MLS / commission system incentivizes sellers to take out these large…
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Other relators do not put their fee pricing on their websites so we decided to follow suit. We have the same pricing model - negotiable. But we provide better service.
Some realtors do in fact list their commissions and fee structure: Some examples from the market we are looking in. 1. Flat fixed fee and refunds extra: https://arrivva.com/ 2. Minimum 1.25-1.5% but refunds 50% of any commission paid above: https://www.walawrealty.com/buy Minimum for me to work with a company is transparent pricing. Even a range based on levels of service is cool. But, I am not going to waste time on…
https://realestate.usnews.com/real-estate/articles/what-the-...
I've been very pleased to use an attorney on a simple hourly fee who did not have such gross conflicts of interest.