New Tech Startup Saving Real Estate Investors Thousands
New startup UpNest is saving real estate investors thousands of dollars in transaction fees
Savvy real estate investors know that investors and agents really can work together. Yet, that can still come with a cost. In order to create viable business relationships investors need to keep commission costs down.
The Real Estate Commission Challenge
Traditional real estate commission rates have been 6% or more. That’s a lot of money and profit being eaten up. It can easily make or break a deal. Still, agents can provide a great buffer from liability, access to a consistent and efficient stream of deals, and can pick up a lot of tasks. Those benefits can’t be ignored.
This has typically left ambitious investors with two choices:
- Get their own real estate licenses
- Get to work trying to negotiate with agents
Both of these options have their pros and cons. While there are potential advantages, becoming a Realtor is time consuming and comes with many other costs and legal liabilities. It can certainly limit what you can do as an investor, and how. Unless you already have a strong track record and reputation in the industry, then negotiating commissions with great Realtors can also be a task. They are hit up by newbies with big promises which don’t pan out everyday. The process can be slow and a drain. Investors also want to get great service at a good price, rather than just settling for a desperate agent who doesn’t really add value.
New Free Tools For Slashing Realtor Commissions Fast
Now there is another alternative. Like Uber and Airbnb; Realtor comparison service UpNest, offers a free and fast solution for quickly and efficiently finding great agents who are willing to cut commissions.
Investors submit basic info and get competing offers from agents who are ranked in the top 5% for their markets. They compete on how much commission they will rebate to investors, and the services they offer. For example; on the buy side, investors may save up to $5k. Sellers in San Fran have been saving an average of over $19k per transaction with UpNest agents. That’s a good amount of change to add to profit margins, especially when it can open the door to scaling deal volume much faster, or expanding into new markets and niches. Plus, data shows that sellers are scoring short term listing agreements, more open houses and marketing services, among other perks when using this bidding system.
Not everyone is going to be happy about startups like this trying to disrupt the status quo, but there can be advantages for those that try them out.