Key facts
- Several startups are providing alternatives to traditional real estate agents.
- These companies aim to reduce commission fees for homebuyers and sellers.
- Beycome has helped close over 18,000 homes and saved users $212 million.
- Clever Real Estate partners with agents offering a 1.5% flat fee.
In the wake of class-action lawsuits that settled commission fee structures, homebuyers and sellers are seeking ways to reduce costs associated with traditional real estate agents. While data suggests buyer's agent commissions have seen minor fluctuations, they remain close to pre-settlement levels. However, a new wave of startups is emerging to offer alternative models, aiming to provide significant savings.
Beycome, founded by Nico Jodin, positions itself as a comprehensive platform for individuals who prefer to bypass traditional agents. Jodin started the company in 2020 after a difficult home-buying experience, focusing on developing technology for consumers. Beycome has facilitated over 18,000 home sales, reportedly saving users $212 million in commissions. For buyers, Beycome acts as a broker and offers a credit, typically 1%, which can be used for closing costs or to reduce mortgage interest points.
Clever Real Estate, established in 2017, has also embraced the flat-fee model. The company connects clients with full-service agents but sets the commission at a flat 1.5%. Clever Real Estate expanded nationwide in 2019 and collaborates with major brokerages. Cofounder Luke Babich suggests that as consumers become more aware of alternatives to the standard 6% commission, agents will need to adapt to maintain transaction volume in an increasingly efficient market.