There is no question that the residential real estate world is expanding. New technology and new business models are providing more and more options to sellers and buyers. But, figuring out which option is right for you can be difficult. In our “Stacking Up” blog series, we hope you find some helpful info regarding how REX stacks up against other non-traditional real estate companies…
Fee Structure for Sellers
–REX charges 2% in total fees. Because REX is the only real estate company not using the MLS to sell homes, our sellers are not obligated to pay a buyer’s agent commission. Compared to traditional real estate agents who charge a 6% fee, REX sellers save $25,000 on average.
-Depending on where you live, the listing fee with Redfin is 1-1.5%. Sounds good, right? Well, what that doesn’t take into account is the 3% the seller must pay to the buyer’s agent. Ultimately, Redfin sellers are paying 4-4.5% in commission fees, which is double what REX charges. For all the technological advancements Redfin claims to have, they still rely on the antiquated MLS, forcing their sellers to compensate both agents in the transaction.
Buyer Rebate Program
-REX understands that your dream home may not be a home we are currently selling. But, that doesn’t mean we can’t help you in the process. REX offers a buyer rebate for those buyers who find a home outside of REX and use us to execute the deal. In this traditional model, REX would make 3% commission on the deal, but instead of keeping it all to ourselves, we cut you a check for 50% of that commission. If you bought a $500,000 home in our program, you would receive $7,500 back.
-The Redfin Rebate program is full of “what-ifs” and “maybe-so’s.” Redfin says buyers are rebated $3,000 on average when using their program. But, in actuality, there are no set parameters for what sellers receive. While REX gives you a 50% commission refund, Redfin uses vague language like, “Redfin contributes part of that money to your closing costs,” or “we typically give you a check for the rest.” Part of? Typically? Nowhere does Redfin definitively state what buyers will be refunded.
There are plenty of other ways REX is different than Redfin. Learn about the REX difference at REXchange.com.