An Irreplaceable Value Proposition (Transmission #303)

There is a long history of technology companies aiming to reduce agent commissions, or displace them entirely.

Now that the changes from the NAR settlement have gone into effect, a fresh wave of ambitious entrepreneurs are attacking the commission pie. Shay pitched itself as the "the first self-representation platform that enables homebuyers to buy a home without a real estate agent." First? Come on, now … be honest. Modern Realty hawks a 0.3% fee rather than 3%. Demand is not the problem, but history has proven building a business based on budget-conscious buyers is like climbing a hill amidst a rockslide. reAlpha calls itself, “The world's first commission-free AI homebuying platform.” I won’t even comment on what a fib that is. Turbohome touts salaried in-house agents for a flat fee. Sounds a heck of a lot like Redfin’s initial approach. Look at Redfin’s model now.

These are the latest, but not even the tip of the iceberg.

I’d love to see a service deliver what agents do—

• take buyers on showings,
• act as a therapist,
• explain why a tenth submitted offer was not accepted to a crying couple at their wits end,
• understand a buyer’s financial buying power and provide personalized advice,
• and curate off-market properties that fit a buy box.

—with only a sliver of the financial upside.

Show me solutions to those buyer needs with proven execution ability, then there stands a chance at business upside.

And, that’s missing the most crucial value great agents provide.