New Flat-Fee Company Touts Early Profitability
Listing agents never set foot in property.
(Mountain Lakes, NJ, March 15, 2018) — As it embarks on a national expansion, startup brokerage Home Bay Technologies is borrowing a number of strategies from the playbook used by other companies seeking to disrupt the traditional business model.
Sellers pay a flat fee. Buyers get a rebate. Agents are paid a salary rather than a commission and they never set foot in the property.
"On a typical listing, a traditional agent would spend 55 to 60 hours," says Ken Potashner, Home Bay’s executive chairman and chief executive. "We spend an hour and a half."
Potashner says that’s possible because of Home Bay’s proprietary technology that streamlines the transaction and moves most of the process online.
The company sends photographers to listings to take photos, and it dispatches independent contractors to install yard signs.
Sellers can show homes themselves, or they can pay $50 to a licensed agent to host listing appointments. Potashner says the showing agents aren’t Home Bay employees but agents for other companies who work on demand, much like Uber drivers.
More on Home Bay and other new flat-fee companies appears in the March issue of Real Estate Broker’s Insider newsletter.
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