REX is excited to be joining the thriving tech community in Austin, Texas. Bringing machine learning, AI, and big data to real estate is helping give consumers a more cost effective alternative to traditional real estate. REX was recently featured in the Austin Business Journal story on “Siri for Realtors? These 5 tech hacks want to shake up Austin real estate.” Below is an excerpt from the article written by Marissa Luck. You can read the full article here.
A Los Angeles- based real estate tech firm is on a mission to convince Austin homebuyers and sellers to skip the MLS altogether. Instead, REX Real Estate uses big data, machine learning and artificial intelligence to micro-target would-be buyers with sophisticated online advertisements.
There are dozens of digital trails consumers leave online every day — and REX tries to harness all of that data to predict not only when someone will want to buy or sell a home, but what type of home they may want. It then uses this data to customize ads and market specific properties toward consumers.
So, for example, if someone is shopping at a home improvement store frequently, has lived in a home for several years, plus has added to their family recently, REX could predict that person has a high likelihood of moving out of their house soon.
“There is something so arcane about the residential real estate space. Of course we put our homes on Zillow and Trulia, but that’s not enough to passively hope it sells on a website. You have to approach people,” said Jack Ryan, CEO and co-founder of REX Real Estate.
REX cuts out a lot of the initial legwork agents do to market properties. However, showings, checking documents and other tasks still need human assists, Ryan said.
Still, skipping MLS and saving agents time means the firm can afford to cut its own commission fees to 2 percent — compared to 5 percent to 6 percent for many residential real estate transactions.
REX launched in Austin in late February and already has 12 homes listed in the $350,000 to $750,000 price range, Ryan said. Two have pending sales, he said. Its three agents joined a team of about 10 data scientist and software engineers already working in Austin to serve the company’s operations in New York, Los Angeles and San Diego. Its investors include former executives at Google, McDonald’s, Sun Microsystems, Best Buy and Crate and Barrel.
Later this year REX plans to launch in seven cities, including Dallas, Denver and San Francisco. But its existing team of data scientists in Austin motivated it to launch in the Texas capital first.
“We’re a tech company and Austin is very tech friendly. People are like, ‘Got it’,” Ryan said.