This company was started by none other than the Fox brothers, who launched the brokerage firm that was later sold to E*Trade.
The Fox brothers have a new business model. Internet savvy consumers handle their own loans and showings, and in return get a rebate of 75% of the buyer agent commission. The NAR has said that 2/3 of buyers find a home without an agent, and use the agent only to close the deal. This pricing model fits perfectly with the way homes are already bought and sold.
Now, let’s just hope that California doesn’t enact the minimum-service rules. That would put these guys out of business.
Yeah – the internet has finally come to the real estate market!
I’m interested to see if this company will be successful. We’ll see….I don’t think the 2/3 figure from NAR is accurate. (Wow..what a surprise..inaccurate info from NAR.) But buyers certainly do a lot of searching on their own…and there will be some demand for a service like this..
From looking at their job posting……Their real estate agents will make just enough money to be renters in San Diego.
BuySide agents rebate 3/4 of the buyer commission to the buyer. So on a 6% commission, where the buyer’s agent gets 3%, BuySide keeps only .75%.
On an $800K house, the 6% commission would be paid as follows:
$ 24,000 to listing agent
$ 18,000 back to buyer
$ 6,000 to BuySide agent.
The BuySide agent controls costs by never leaving the office. Buyers find and look at homes on their own, without being hand-held by their agent. Eliminating the taxi service is what drives down the cost. Amazing! I didn’t know we were paying so much just for the agent’s time in meeting us at homes.
As fellow forum participant hs stated before, she doesn’t need a buyers’ agent. She and others like her are fully capable of looking at houses themselves, and negotiating directly with the seller. An independent educated buyer like she only need an attorney to assist with paperwork, but can negotiate without a realtor.
I wonder if BuySide’s fees are similar to those of an attorney who draws up RE transaction paperwork.
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