The Internet has driven down the middleman’s take on everything from books to autos, so why not homes?
ReLogic, a Denver real estate firm, has launched a website that allows agents to make more efficient use of their time and passes on the savings in the form of lower commissions.
Homeowners typically pay a 6 percent commission to sell their homes, which is split between agents representing the seller and the buyer.
Full-commission real estate agents argue that this is money well-spent, given the level of service and networks of other interested agents and potential buyers they can access.
ReLogic, meanwhile, will list homes for 4.5 percent of the sale price.
If the company represents a buyer, it will share its 3 percent commission with the buyer, rebating 0.75 percent of the sale price. On a $300,000 home, for example, that works out to a rebate of $2,250.
“It is full service with a meaningful discount,” said John Carney, the startup’s chief executive.
In metro Denver’s soft real estate market, sellers who are taking a cut in price – sometimes even taking a loss – aren’t thrilled about covering a full commission, Carney said.
The Internet is eliminating much of the time-consuming legwork that occupied agents in the past, but most firms aren’t sharing those savings.
About 80 percent of homebuyers now start their home searches online, taking an average of four weeks to sort out what kind of home they want and its location, said Carney, citing data from the National Association of Realtors.
On relogic.com, a homebuyer can search for homes and then schedule a showing when ready.
ReLogic uses a showing expert, who may or may not be a licensed agent. A licensed agent, however, will negotiate the price and terms of sale. Another agent who specializes in closings will wrap up the transaction.
The company has also automated the process of generating closing documents, saving costs on the back end.
ReLogic agents benefit because they don’t have to spend time chasing down prospective clients, who come in through the Internet.
The company offers the full range of Metrolist homes offered online.
It plans to expand to 25 cities within three years and to triple its staff of a dozen by the end of summer.
Staff writer Aldo Svaldi can be reached at 303-954-1410 or asvaldi@denverpost.com.
