If you thought Apple’s Siri was cool, or Amazon’s Alexa a must-have, how about Rex the real estate robot?
Yes, you read right, your next real estate broker could be a robot.
Please say hello to Rex who is said to be giving human Realtors a run for their commissions in markets such as California and New York.
Created by a team of entrepreneurs in 2015, Rex the robot is deployed by REX Real Estate Exchange, an online marketing platform founded by former Goldman Sachs Executive Jack Ryan.
Not Going Solo Yet
But Rex isn’t running on its own quite yet … In its current generation, Rex can’t do it all, so a human rep is also on site, greeting potential buyers. Rex also employs licensed brokers and salespersons but is paying them salaries rather than commissions, Ryan explained.
“If you’re not a very good agent, you’re gonna have problems competing against the robot but if you’re good, you will still have a job,” said Ryan, who also serves as the CEO of Rex Real Estate Exchange during a recent interview with FOX Business’ Maria Bartiromo.
Cheaper than an Agent
One of the reasons Rex is doing so well Ryan said, “is because the company is only charging a 2 percent fee while traditional agents charge 6 percent.”
As mentioned, in places like NY and California, Rex is making its mark: “So we’re listing and closing a home a day in California. And, we just launched in New York last week and we already have three homes listed in New York in a week. So, it’s going really well,” Ryan said in the interview back in August with Bartiromo.
A Smart Robot
Another perk offered by Rex is that the device can answer any homeowner questions a potential buyer might have: How big is your lot? How many square feet is the kitchen? Or whatever else comes to mind.
“Basically, there are 75 questions you have about a home, we found that out. And there is a 100 ways to ask those 75 questions and we have trained our robots to answer all those questions so no one has to follow you around and say this home is 2,500 square feet,” Ryan said in the Fox report.
And if that wasn’t enough, the Rex robots are trained to use Artificial Intelligence to try to target potential buyers throughout Social Media using Facebook, Instagram, and Snapchat ads.
The Rex idea has even caught the eye of big investors such as the founders of Best Buy and Crate & Barrel, Ryan said. Additionally, the Woodland Hills, CA-based company has raised more than $16 million to date, and it could get better. Why? Maybe because the company believes it’s more convenient and less costly than hiring an agent.
No MLS and No Big Commission
One big difference between Rex and the traditional way of doing a home sale is that Rex does not use the industry standard’s Multiple Listing Service (MLS) and it charges just a 2 percent fee versus the 6 percent a Realtor does.
Most homeowners aren’t happy about giving 6 percent to the brokers and, by using the Rex services, they save $25,000 on average, Ryan said.
So, as more and more homeowners search for the best way to sell their homes, who knows maybe your next real estate broker could be Rex the robot! Time will tell!