A number of real estate companies that have abandoned the standard model of charging homesellers a 6 percent sales commission are further shaking up the business by entering the lending and title industries. REX, which sells homes for a 2 percent fee, offers brokerage, mortgage and insurance services in Texas and will begin providing warranty, title and escrow in June.
REX is part of a wave of brokerages offering low fees and convenience. But lower fees, while attractive to consumers, are a difficult sell to real estate agents, independent contractors who are used to compensation based on a commission of 6 percent of the sales price.
That’s why agents at nontraditional brokerages tend to be employees, not commission-based independent contractors.
Andrew Barkett, chief technology officer at REX, said: “Our people are salaried employees. They don’t get a commission. So they can sell all of the services, because they don’t get a commission on any of them.”
Read the full article: Bringing services under one roof, real estate firms reshape homebuying process (Houston Chronicle)
