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Rexchange in Los Angeles

sl2013 4 10 April 21, 2016 at 10:28 PM in Home & Home Improvement (4)
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Please explain what's pros/cons for using rexchange? I like the 1% (or 1.5%) instead of 6% fee I'd have to normally pay. Is it too good to be true? What am I missing? Thanks.

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#2
From my understanding, the home is not listed on the MLS, so the only people who will see the home are those looking online and want to use REX rather than a real-estate agent.

"Regular" real-estate agents (who use the MLS to find houses) have no incentive to have their clients buy a house on REX because they do not get a commission. So they won't even tell their clients about your house.

Using REX you run the risk of less exposure of your house to people wanting to buy.

If you want less fees, but still want your house listed on the MLS (which, will also get it listed on Zillow and those websites), there are online services to just list your house on the MLS. Then, you do not have a selling real-estate agent, so there is no percentage fee for that agent. (Just a flat fee, and you get someone who will work with you through all the paperwork steps.)
There is still have a percentage fee for the buying agent (2-3%? I don't know), so there is encouragement for buying real-estate agents to tell/show their clients about your house.

Of course, without a selling agent, you lack some of the "publicity" to sell your house. Selling agents usually are friends with other agents, so they tell them about your "awesome" house. They will advertise it in the paper. They are the ones that also organize open houses, etc... So, there are always trade-offs. But in this digital age, are people really using open houses? I don't know... Something for you to decide Smilie

I have never used either method, I just know about them in a general way... Good luck whatever you choose!
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#3
Not sure if this helps, but I see ads for their open houses in the newspaper all the time. Your post got me curious so I checked... Their homes are on zillow, trulia, etc.
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#4
Quote from sl2013 View Post :
Please explain what's pros/cons for using rexchange? I like the 1% (or 1.5%) instead of 6% fee I'd have to normally pay. Is it too good to be true? What am I missing? Thanks.
Thanks OP. I went the site but am not sure where you see the 1.5%? All I see is 1% fee.
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Last edited by Nospam5 April 29, 2016 at 07:46 AM
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#5
Quote from Nospam5 View Post :
Thanks OP. I went the site but am not sure where you see the 1.5%? All I see is 1% fee.
There's a 9k minimum. Median-priced home in Los Angeles is 600k that raises the fee to 1.5%. Still pretty good.

I'm still not sure how to evaluate if they will end up gaining the biggest net profit compared to other approaches.

Perhaps the statistical approach would be to collect sale data along with comps.
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#6
Quote from r007 View Post :
From my understanding, the home is not listed on the MLS, so the only people who will see the home are those looking online and want to use REX rather than a real-estate agent.

"Regular" real-estate agents (who use the MLS to find houses) have no incentive to have their clients buy a house on REX because they do not get a commission. So they won't even tell their clients about your house.

Using REX you run the risk of less exposure of your house to people wanting to buy.

If you want less fees, but still want your house listed on the MLS (which, will also get it listed on Zillow and those websites), there are online services to just list your house on the MLS. Then, you do not have a selling real-estate agent, so there is no percentage fee for that agent. (Just a flat fee, and you get someone who will work with you through all the paperwork steps.)
There is still have a percentage fee for the buying agent (2-3%? I don't know), so there is encouragement for buying real-estate agents to tell/show their clients about your house.

Of course, without a selling agent, you lack some of the "publicity" to sell your house. Selling agents usually are friends with other agents, so they tell them about your "awesome" house. They will advertise it in the paper. They are the ones that also organize open houses, etc... So, there are always trade-offs. But in this digital age, are people really using open houses? I don't know... Something for you to decide Smilie

I have never used either method, I just know about them in a general way... Good luck whatever you choose!
The biggest question that Rex challenges, and that I have no idea the answer to, is if MLS exposure is really as relevant as it's made out to be.

Your comment did raise a concern on how buyers with agent exclusives might buy a Rex promoted property.
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