- 🛑 REX Real Estate reportedly shut down operations in May 2022.
As per multiple reports, REX has laid off employees and closed the Austin and California offices. They’ve also asked their agents to transfer the licenses to another brokerage.
REX Homes is a discount brokerage that charges a commission of only 2.5 percent. Its business model is much riskier for sellers because REX doesn’t list your home on the MLS (Multiple Listing Service). Without the MLS, you lose the important exposure necessary to get the best price for your home. Even if you successfully sell your home with REX for a 2.5% commission, you likely won’t have tapped the market’s full potential and not have gotten top dollar.
What is REX Real Estate?
REX Real Estate helps home sellers save on realtor commissions by cutting out buyer agents’ commissions. In a typical real estate transaction, you incur a 6% commission, 3% for listing your home on the MLS, and 3% for the buyer agent.
The Rise & Fall of REX Real Estate
An overview of what’s happening in one of the biggest real estate lawsuits of all time.
When selling with REX, you only pay the 2.5%-3% listing fee. REX claims you won’t have to pay a buyer’s agent commission because REX doesn’t list your home on the MLS. REX advertises and markets the homes directly to potential buyers on Zillow, Facebook, and Instagram.
REX aims to find direct buyers who don’t have an agent. That’s why it doesn’t list on the MLS, walking away from 90% of agent-represented buyers on the platform.
👉 Best For Sale By Owner Websites: View our rankings of America’s best FSBO websites in 2023!
Is REX Real Estate Legitimate?
Yes, REX Real Estate is a legitimate company. A low-fee broker with licensed agents who can help you buy or sell homes in select markets across 16 U.S. states.
REX lacks flexibility for home sellers and buyers. If your home lies outside of REX’s service areas, it will be better to look at REX alternatives to ensure you save a boatload of cash while selling your home
👉 How to Sell a House By Owner: Know about the ins and outs of selling a house without a Realtor.
REX Real Estate Locations
REX Real Estate is a licensed real estate broker in 16 states. This includes:
- District of Columbia
- New York
- New Jersey
REX is fast declining, according to recent news, and has had to close offices in six states, including New York and Illinois. This shows that REX is not providing enough value to clients and that it will fail to become a real estate unicorn despite raising millions in investor capital.
How Does REX Work?
REX is a unique discount real estate broker. Most discount real estate brokers will reduce their own commission on the listing side. REX charges a full 2.5% listing agent commission but cuts out the buyer agent’s commission to 0. In addition to this, REX does not list your home on the MLS.
This causes 2 problems:
- Your Listing Will Get Very Limited Exposure: You obviously don’t get the exposure the MLS offers. In addition, REX’s listings on Zillow are in the “Other Listings” tab and not the default tab. This further limits their visibility.
- Buyer Agents Will Not be Enthusiastic About Your Listing: Albeit steering customers away from listings that offer a low buyer agent commission is against the NAR Code of Ethics., you can imagine that such listings present unique challenges to buyer agents. They will have to have uncomfortable discussions with the buyer and REX about how they will be compensated for their time. This additional friction means some buyer agents just won’t promote your listing as enthusiastically.
For these 2 reasons, we do not recommend REX for home sellers.
REX Listing Fee
Another thing to note is REX charges a minimum of $9,000 as its listing fee. This means that you only save on the listing fee if your house is valued at more than $360,000. For anything lower than that, you don’t pay 2.5% of the property’s value; you pay a flat fee of $9,000.
For example, if you have a property in Chicago that is valued at $250,000, then as per their “advertised” listing fee of 2.5%, you should pay only $6,250, but due to their “minimum” listing price cap, you will have to shell out $9,000. That’s $2,750 extra!
There are less risky ways to sell your home. You can consider other competitors in the discounted brokerage space or sell your house for sale by the owner using flat fee MLS services.
👉 OUR RECOMMENDATION: List your home yourself via Houzeo’s Flat Fee MLS for $299 and save the entire Listing Agent Commission!
How Much Does REX Cost you?
REX advertises a 2.5% listing fee as the only fee the sellers will incur. But this is an assumption. This 2.5% listing fee supposedly covers both parties and implies sellers save loads of money while selling homes with REX. However, this will only be true if REX can find an unrepresented buyer, which won’t always be the case.
Plus, if you want to attract top dollar for your property, we recommend you offer the buyer’s agent a competitive commission so they work for you. Keeping that in mind, let’s look at REX’s pricing.
|Listing Agent Commission||2.5%||$299 Flat Fee|
|Buyer’s Agent Commission||2.5% – 3%||2.5%|
|Total Commission||5% – 5.5%||2.5%|
Is REX Really 2.5%?
It is quite subjective because REX charges a listing fee of 2.5%. However, this is exclusive of the buyer’s agent commission, which is usually around 2.5% to 3% of the home’s selling price.
The approach here is to avoid covering the buyer’s agent fee, but this is FAR from a guarantee. REX also charges a $9,000 minimum fee. You’ll pay more than 2.5 percent of your home sales for less than $350,000.
Selling and Buying Process with REX
Selling with REX
Listing with REX is similar to selling with a traditional brokerage. An agent — or another member of the REX team — will assist you throughout the process.
This includes everything from:
- Pricing the property
- Professional photography
- Open house showing management
- Negotiating offers with buyers
However, in contrast to a traditional realtor, REX doesn’t list your home on the MLS. It markets your home to unrepresented consumers through targeted digital advertising.
This approach is risky, and it could take a lot longer to sell the house than if it was listed on the MLS.
Buying with REX
REX offers homeowners discounts – but only if you buy a home that REX doesn’t list. It’s not a simple process, but you might receive a commission return of up to 1.5 percent of the purchase price if your transaction qualifies.
These buyer rebates always come with terms and restrictions, so reading the fine print to verify is the first thing to do. As a buyer, state rules and even the policies of your mortgage lender may limit your ability to receive a commission refund.
In summary, if you consider a REX seller, you will not be entitled to any buyer rebates. Furthermore, given REX’s strategy, the seller may expect you to buy the house without using an agency, or you’ll have to pay your agent’s commission out of your own wallet.
So, buying directly from REX offers no benefits but does add built-in risk to the deal.
REX Real Estate Reviews
Past users who enjoyed buyer rebates and sellers who saved hefty commissions say REX is the way to go, but only if the high-risk model works. The business model has a high failure rate because an agent represents about 90% of buyers. Finding the 10% and getting them to buy your property can be as difficult as looking for a needle in a haystack. Every REX customer seems to have a unique experience.
REX Homes Positive Customer Reviews
✅ Many customer reviews have praised REX’s professionalism and services.
✅ Several reviews indicate that REX is easy to work with and provides good service.
REX Homes Negative Customer Reviews
❌ REX has received mixed reviews, some indicating that it is competent but lacks sources to help you sell your house.
❌ They explained the sluggishness of REX Real Estate and their lack of concern for customer satisfaction.
REX Homes Pros & Cons
REX Real Estate Pros
✅ Solid Savings
REX’s strategy may involve risk, but if it works, you save on realtor commission by avoiding the buyer’s agent commission. That’s 3% of the home price! The model doesn’t guarantee consistent savings for all REX home sellers, but a fair few share positive thoughts about REX.
Say, this Facebook reviewer who sold a house in Houston through REX Homes and saved thousands of dollars in commission fees.
✅ REX’s Personalized Support
REX agents provide personalized support during home selling and make it an exclusive experience for the home seller. Technology has made real estate transactions seamless, but nothing beats hand-holding and onboarding.
For activities like house openings, deciding a listing price, home decor and marketing recommendations, and negotiating profitable offers for the sellers, REX agents provide all types of support.
In Denver, a first-time seller valued the REX Team’s experience and quick turnaround time, which made the process less stressful:
✅ Buyer Commission Rebates
If you end up buying a property via REX, you can earn a commission rebate of up to 1.5% of the purchase price. The buyer rebates help offset other expenses, often spent while closing the home sale.
REX Real Estate Cons
⛔ Limited Visibility
REX Homes aims to find an unrepresented buyer and advertises your home on social media and referral websites. Not being listed on the MLS takes away the exposure and visibility of 90% agent represented buyers.
Such limited visibility reduces the chances of a quick and convenient home sale. As this Google reviewer explains, there’s a risk your home may be invisible to prospective buyers.
⛔ Sellers Paying Buyer’s Agent Commission
This is the biggest flaw in REX’s business model; past sellers have reported that REX failed to find an unrepresented buyer and sellers had to pay the 2.5% buyer’s agent commission, making their savings no less than a transaction with a traditional realtor.
REX has failed consistently in advertising properties efficiently, which may be one reason for its shrinking growth.
Alternatives to REX Homes
REX vs. Houzeo
🔥 BEST FLAT FEE MLS LISTING SERVICE
Why It’s #1: Houzeo has thousands of 5-star reviews. It offers the best combination of maximum savings, advanced technology, 5-star customer support, and listing exposure.
Packages: Houzeo typically offers 4 Flat Fee MLS packages.
- Bronze Package – $299+: It is the best for selling a lot. Your listing gets syndicated to Zillow, Trulia, Realtor, Redfin, and more.
- Silver Package – $349+: This includes everything that home sellers typically look for.
- Gold Package – $399+: It is Houzeo’s signature MLS package and includes all the technology Houzeo is known for Houzeo Showings, Houzeo Offers, and DigiTransact.
- Platinum – $999+: It includes the assistance of a licensed broker to help you with negotiations, disclosures, and closing.
👉 Our Take: We recommend the GOLD plan. You’ll have all the access to Houzeo tech, making managing showings and offer negotiations easy!
» Houzeo Reviews: Houzeo is 100% online. You can finish listing formalities in less than 60 mins.
- Near Nationwide Coverage: Houzeo covers 47 states + DC.
- No Listing Agent Commission: With Houzeo, you only pay a small flat fee to list on MLS and get access to all the Houzeo tech.
- 100% online: Easy listing, fast changes, online showings, and online offers.
- Max Exposure: Listings get syndicated to Zillow, Realtor.com, Trulia, Redfin, and 100s of other real estate sites.
- Fast Listing: Rush listing option gets you listed within a business day with Houzeo Concierge.
- Real Estate On the Go: Houzeo Mobile App mimics most functionality of the Houzeo web platform, including Offers and Showings.
- 5-Star Customer Service: Superb support that minimizes Houzeo complaints.
- No Hidden Fees: There are no Houzeo hidden fees.
» Is Houzeo Legit: Learn more about Houzeo.com’s locations and services.
Houzeo has 4.9 out of 5 stars on Google & Trustpilot.
» Houzeo Reviews: Check out what customers have to say about Houzeo.
Houzeo is available nationwide.
Houzeo is not your ordinary flat fee MLS and FSBO service provider. It’s one of the most advanced For Sale by Owner websites available. Once you’ve decided to list your home, the overall process runs smoothly—all essential documents and listing paperwork, all online! What’s more, there are no hidden costs at closing and no listing agent commission.
REX’s 2.5% listing fee may seem not appealing compared to Houzeo’s pricing package—only $199 to start listing. It’s even less than REX’s 2.5% listing agent commission. Also, listing your property with REX may be subject to a lot of limitations and some states aren’t even available.
Houzeo also offers an IntelliList Listing Management System. In a way, it helps manage your listing details, signs your Listing Agreement online, and tracks listing progress. If you’re looking for the most advanced Flat Fee MLS/FSBO platform that offers limitless leverage and cutting-edge technology, visit Houzeo and list your home.
👉 Houzeo Reviews: You NEED to Read These Reviews!
REX vs. Redfin
Redfin is a discounted brokerage that employs salaried agents to help you in your home selling or buying journey. With a listing fee of a minimum of 1.5%, Redfin is America’s most prominent discounted broker, and it’d make sense to choose them over REX any day. REX Homes starts at a minimum 2.5% listing fee.
Redfin’s agents have inconsistent reviews in select markets, but the major difference between REX and Redfin is the absence of MLS in REX’s approach. Redfin listing is syndicated across all local MLS and real estate websites like Zillow, Trulia, Realtor.com, etc. REX, on the other hand, doesn’t list your home on the MLS and advertises your property on Google, Zillow, Bing, Facebook, and even in print media.
👉 Redfin Reviews: Is It TRULY 1% Listing Fee?
REX vs. Traditional Agents
The key difference between the two business models is how REX and traditional agents earn their living. REX agents usually earn through their commission and bonuses based on their client’s feedback.
Working with a traditional agent is like teaming up with a business partner. You both want what’s best for your home. But buying and selling with REX Homes may seem questionable since the level of their commitment depends on the price you pay.
👉 Discount Real Estate Brokers: We’ve ranked the top discount brokers in the US.
Other Options You Should Consider
1. Sell to iBuyers
iBuyers make an offer on your property within 24-48 hours and can close within 7 days or more. Most iBuyers like Opendoor and Offerpad are also known to offer the Fair Market Value (FMV) for your property.
Selling to an iBuyer has certain significant drawbacks. These include:
- Limited coverage, restricted to metro and urban areas
- Strict eligibility criteria without exceptions
- Non-negotiable offers
- 5% service fee
- 2% – 8% repair costs
⭐ Our Take: We recommend iBuyers if your house meets the iBuyer company’s eligibility criteria.
👉 iBuyer Reviews: Check out rankings, pros, cons & alternatives of top iBuyers in America
2. Sell to “We Buy Homes for Cash” Companies
Unlike iBuyers, “We buy homes for cash” companies help you sell your house as-is fast. They can even close within 7 days or any date you choose. “We buy homes for cash” companies also make cash offers for homes outside metro areas or in difficult-to-sell locations.
Here’s why traditional cash home buyers could be a bad option for you than an iBuyer:
- They make lowball offers and offer only 50% – 70% of market value.
- Their offers are non-negotiable
⭐ Our Take: We recommend selling to a cash home buyer if you are selling a distressed house “as-is” without looking for the best price.
👉 “We Buy Homes for Cash” Companies: Check out America’s biggest cash home buyer companies in 2023
“We Buy Homes for Cash” Companies Near You
3. Sell FSBO With Flat Fee MLS Services
Listing with a Flat Fee MLS service gets your house on the market within just 24-48 hours. Selling For Sale By Owner has increased substantially in the past few years, with 77% of FSBO homes being sold in less than 2 weeks.
Flat Fee MLS is one of the best ways to sell your house fast, and it has 4 major benefits:
- MLS is the fastest way to hit the market, plus your listing is syndicated to Zillow, Realtor.com, etc.
- Your listing gets maximum exposure.
- You can negotiate all offers.
- You skip paying commission or service fees.
⭐ Our Take: We recommend Flat Fee MLS companies for most home sellers. They are fast, and you will save thousands in commissions.
👉 For Sale By Owner Websites: Check out the rankings for America’s best FSBO websites!
Is REX Real Estate Worth It?
2022’s housing market has more inventory than ever. If you’re buying via REX, you can save some money with their commission rebates. However, if you’re selling via REX Real Estate, I’d suggest looking at the other options in your locality. You can review iBuyers Opendoor reviews who pay cash for houses for a quick and convenient sale.
You can also consider flat fee realtors to save on the 3% listing agent commission and reap the benefits of a technology-first platform like Houzeo to sell your house faster. Listing on the MLS is the biggest source of potential buyers.
When you list via Houzeo, you get access to tools only real estate agents have! A comprehensive dashboard, 100% digitized paperwork, and responsive customer support teams to help home sellers in their quest to get a top-dollar rate on the sale of their homes.
Frequently Asked Questions
Where does REX Homes operate?
REX Real Estate operates in Texas,California, Florida, Georgia, Colorado, Maryland, Nevada, New Jersey, Oregon, Arizona, Pennsylvania, and Washington, among other places. REX's presence is diminishing, with offices lately closing in six states, including New York and Illinois. This means that REX will fall short of becoming a real estate unicorn, despite obtaining millions of dollars in investor capital.
Who are REX's top competitors?
REX's top competitors include discount real estate companies like Redfin, Houwzer, and flat fee MLS listing companies like Houzeo. If you want to compare options available in your area, check out our blog on top discount real estate agents.
How much does REX cost you?
REX imposes a 2.5 percent listing fee, which is capped at $9,000 per transaction. REX's price isn't much of a reduction compared to what other realtors charge, which is 2.5-3 percent. Some of REX's best competitors charge as little as 1 per cent in listing fees, while flat fee MLS companies charge as little as a few dollars in listing fees. Check out the top low commission real estate agents.
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