REX Real Estate is a company that promotes itself as a “no-commission” listing service for homeowners. While this may be true in some cases, the company still charges a 2.5% listing fee. In addition, sellers will likely have to pay a buyer’s agent’s commission. However, most sellers will likely not be able to find a buyer without MLS, so most sellers will have to pay a commission.
4.7 out of 5 stars
Although REX’s fee structure is attractive to sellers, the service is not without flaws. For example, REX charges a minimum 2.5% fee on all sales, which is higher than most discount brokerages. It also charges an additional 2.5% commission on buyer’s agent fees. This is not a good deal for sellers who want to save money. However, buyers should know that REX tries to make up the fee by taking money from the seller’s agent. This approach carries numerous risks for sellers, including reduced exposure, lower offers, and a more difficult time selling a home.
REX’s marketing strategy has a negative reputation among traditional realtors, which can hurt home sellers. Because of this, many agents will not show REX listings without paying a buyer’s agent’s fee. As a result, many sellers end up missing out on potential buyers.
1% listing fee
While REX Real Estate claims to have the lowest fees in the industry, it has several drawbacks. These include high rates, a risky service model, and poor customer service. In addition, REX doesn’t offer any intrinsic value over traditional realtors or brokers. There are numerous alternatives.
Another drawback to REX is its high commission fees. In general, REX asks buyers to pay for their buyer’s agent commission, which can run as much as 2.5-3 percent of the purchase price. However, REX does reimburse up to 1.5% of the commission. This is a standard practice among discount brokers. However, many buyers and sellers feel this additional fee is a stumbling block.
In addition to the high listing fee, REX charges a 2.5% commission rate for connecting sellers and homebuyers who don’t use an agent. That makes the total fee between the two services 5 to 5.5%. However, REX only covers this fee if the home sells for more than $360,000.
If you are selling your home, you may want to avoid using REX real estate agents. The company advertises a 2.5% commission for bringing sellers and buyers together. The company says this fee is split between the seller and the buyer’s agent. However, that is only true if REX can bring unrepresented buyers.
The company offers its platform for marketing homes, which can help attract unrepresented buyers. In contrast, if you want a home to sell quickly, you might want to list it with a buyer’s agent. However, REX houses do not appear on MLS. This reduces the exposure of your property to the most serious buyers. But, again, the reason is that most serious buyers will likely work with an agent.
While this option may be more convenient, most sellers will pay the buyer’s agent commission. While offering a buyer’s agent commission is not mandatory, it is common practice. Over 90% of buyers will use a buyer’s agent to view homes. But if you want to reduce your costs, you can look into using a discount real estate broker. It will save you about 2.5-3% on your listing fee.
Buyer’s agent commission
The commission rate is a crucial factor to consider in comparing REX to traditional real estate brokerages. While REX advertises a lower buyer’s agent commission, the real estate agent commission is not the only cost involved in real estate transactions. The company also charges a listing fee. This fee, however, can be avoided by listing the property on a website that doesn’t charge a commission. In addition, REX advertises that it will bypass the MLS, reducing the commission cost. However, this approach will reduce the visibility of your home and make it more challenging to attract qualified buyers.
In addition, REX also advertises your home directly to buyers rather than listing it on the multiple listing service, which is the most commonly used tool by realtors. While this approach will reduce the commission for the seller, almost 90% of buyers use a realtor.