Northville-based RealtyOffer has released a new product for the home buying and selling process via the development of a digitalized bidding platform that implements the use of artificial intelligence to efficiently connect buyers and sellers to agents with pre-negotiated terms.
RealtyOffer states its new streaming platform makes the homebuying process faster and cheaper.
“The real estate market is one of the hardest industries to break into, with 10 percent of agents cornering the market while the remaining 90 percent struggle to sustain themselves,” says Thea Tuto, co-founder and CEO of RealtyOffer.
“RealtyOffer levels the playing field by allowing all qualified agents to bid on the same business. Rather than blindly spending thousands (of dollars) on print or digital advertising, agents can directly measure their return on investment through new client contracts.”
The purpose for the platform is to offer home buyers and sellers the opportunity to educate themselves on the whole process. They also have the opportunity to understand and engage in the negotiation process between a home buyer/seller and an agent. Many people looking to sell or buy a house usually don’t even know that negotiating with an agent is a choice.
“Most individuals who are active in the market to buy or sell a home don’t realize that the average 6-8 percent agent commission rates on a real estate transaction are negotiable. For example, a 1 percent reduction in commission on a $250,000 home means a $2,500 savings for a consumer, which could go toward a down payment or furnishing the home. It’s a significant savings,” Tuto says.
At the start, RealtyOffer’s platform allows homebuyers and sellers to specify their needs through the purchase or selling experience. Next, agents in the area may choose to lower their commission rate for a seller to bid or they could help the buyer and offer their commission to go to a buyer’s closing costs. The homebuyers or sellers are then sent three bids from matched agents, and from there the buyer or seller can select the agent that gives the best offer.
RealtyOffer’s new bidding platform is currently active in Oakland, Wayne, and Macomb counties. The company plans on implementing their new platform into more than 200 cities by the end of 2021.