Most real estate agents charge a commission, sometimes up to 6% of the sale price of a home, for listing and selling a house.
The commission for a home that sells for $170,000 is just over $10,000. It is equivalent to $30,000 for a home that sells for half a million dollars. The commission is $60,000 for a home that sells for $1 million. You understand what's going on. Depending on the amount of equity a seller has, the commission can be significant.
It can be hard to give up so much money in commission when there is a shortage of inventory and houses are being sold off. Many homeowners would still love the option to list and sell their homes themselves, with a little help from real estate professionals, even though there are a number of sites that offer lower commission.
Home Lister gives homeowners a way to list and sell their properties online with support. The goal is to give sellers more control of the sales process and make it easier for them to keep their equity. Homelister says it can fix the cost of the sell-side agent and shorten the median days on market from 16 days to 9 by using automation.
The company was founded in Santa Monica, California, by CEO Lindsay McLean and attorney and real estate broker Jen Stein.
I used a top-notch agent to purchase my home. I found myself doing most of the work for the sale, including setting the initial sale price and researching home comps in the area.
Her home sold in less than a week at the price she had set in a double-ended deal, which allowed her real estate agent to keep the full commission.
I wrote a commission check that was more than 25% of my equity at closing. It blew my mind. The agent was great, but not worth 25% of my equity. I was surprised at the economics of a traditional agent on a sale. I had worked hard to make that happen.
Many people see the traditional model of an agent taking a commission as outdated. Homeowners and investors have been drawn to the company. Homelister says it has helped sell more than 3,750 homes and saved its clients an estimated $77.5 million in equity. Today, the company announced it has raised $10 million in a Series A round of funding, bringing its total raised to over 15 million dollars.
Homelister plans to expand into six other states, including South Carolina, in the year 2022. The goal is to be in every state.
What does it do? A system will walk a homeowner through the listing process if they enter an address on HomeLister's website. The basic plan list is free for customers who choose it. Premium and Platinum plans can be had for up to $2,999 depending on the level of assistance they want. There are a number of services that can be added la carte. Its services are all online.
The premium package has a real estate professional guiding you from start to finish, including helping you price your home and strategize, and then negotiating offers and any questions throughout.
While the company declined to reveal hard revenue figures, it did say that it grew revenue by over 3x from 2020 to 2021.
HomeLister will bring additional services to its site, such as title services and automated transaction management.
Some MLS providers who list you and then walk away are now being compared to traditional real estate agents. Homelister is the best of the two. The flat fee is tied to how much work we do, not the price of your home, so you get as much help as you want.
Lindsay McLean is the CEO and co- founder of Home Lister.
Karl Alomar stated in his statement that the real estate market has been a strong seller's market in recent years.
The period of quick sales has shown the inefficiency and cost of the traditional brokerage service. Homelister attacks this issue with a thoughtful and valuable digital solution that has great traction with sellers and breathing room for growth.
Real estate is the most important asset for most people.
He said that Home Lister is re-designing the home selling process to ensure that sellers keep as much of their equity as possible.