According to the latest data, roughly 15,400 homes are sold each day in the United States alone. The vast majority are handled by a realtor demanding at least 6% in commission for their involvement. At least, for now anyway. Change is on the horizon, and Realtors are not happy.
For Sale and For Rent by Owner real estate specialist beycome.com is turning the traditional real estate industry on its head by innovating how homeowners can handle their own commission-free home sale and/or lease. Rather than rest on the laurels of having taken the highly competitive Florida real estate market by storm, beycome Realty has set their sights on New York without skipping a beat. If all goes well, the rest of the country will soon follow.
We decided to take a closer look to learn how and why beycome is determined to help homeowners become their own real estate agents.
Challenging the status quo is at the very heart of beycome. Like other successful startups have seized on untapped internet potential, beycome became a business by recognizing the existing real estate market for what it is in the digital age: a legacy more than a necessity.
Most Americans rarely if ever question the concept of Realtors and why they exist. Similar to how we came to unquestioningly accept the inevitability of car dealerships, never wondering why we don’t buy directly from the carmaker, Americans have accepted Realtors as a cold hard reality of real estate.
Demonstrating this is the fact homes sold by owner have, for years now, been deemed strange outliers on the block. People stop and ask “Why aren’t they going through a Realtor?”
beycome wants us to instead start asking, “Why do we depend on someone else to sell or rent our own home?” Indeed, there is no real reason to go through a real estate agent except for their access to information of the market and their experience. beycome makes it their business to provide an alternate outlet for homeowners to access this same information and benefit from industry experience, one which is commission-free.
Information & Guidance
The men and women at beycome don’t believe in trade secrets, at least when it comes to the knowledge and resources needed for someone to successfully sell or lease their very own property. Which is why beycome makes it their business to provide users with not only state-approved legal documents devised by fully licensed real estate attorneys, but also with an easy way to make an offer and negotiate using their interface. In fact, beycome is the first real estate platform where owners can realize 100% of their home transactions online and for free. Furthermore, beycome gives homeowners access to the relevant MLSs, or Multiple Listing Services, which act as the lifeblood of American real estate sales and rental success.
The traditional real estate industry is, on the other hand, entirely dependent on withholding information from folks whose homes they list. Treating contracts and listings access as though it were privileged knowledge is agent’s forte, as it justifies his existence and keeps him employed. The reason we’ve never heard about this until beycome is because the real estate industry has been determined to snuff out any and all efforts to help homeowners sell on their own. Why wouldn’t they? The accumulated annual commission from real estate sales enters the billions.
In fact, it’s no secret traditional realty companies have sworn to do everything they can to destroy FSBO (For Sale By Owner) services showing any signs of success. Nico Jodin, CEO and founder of beycome, was recently quoted by Entrepreneur regarding the unwarm welcome his company has gotten from the titans of traditional real estate. “…we've already started feeling the heat from the current real estate market, who don't want us to educate homeowners on all of these beneficial options easily available to them.” According to press releases put out by beycome, the “heat” includes, among other things, death threats sent to the company by those angry at the perceived betrayal to traditional real estate dealings. When asked about some of the social media comments his company often receives (such as those comparing the concept of beycome to letting patients performing surgery on themselves), Jodin responded with, “we never promised to save a life or take care of someone’s health, so to compare us to doctors or dentists or lawyers makes no sense. There is no rocket science behind real estate, you can become an agent in one week! It’s impossible to compare this profession with the others.”
Of course, the men and women at beycome recognize that information is merely a weapon: people need to know how to effectively put it to use or otherwise it’s little more than trivia. Which is why, in addition to providing homeowners with the documents and listings data critical to a successful sale, beycome gives users full guidance along the way. Customer service support is there six days a week to fill in the blanks and keep the process moving strongly. Additionally, beycome includes access to Dual Comparative Marketing Analysis Tools, allowing users to more quickly comprehend their current standing in the middle of an offer process.
Some aspects of selling a home, however, are things even beycome isn’t going to show you, because they’re things everyone should already know. This includes taking the proper steps to ensure the property is properly maintained, as well as keeping a house for sale in a state of utmost cleanliness at all times.
beycome wants to give homeowners the best chance to close on their property – so whether you’re looking to create your own flyers, create a virtual home tour or you’d like personalized yard signs to put up, they want to give it to you.
We’ve focused mostly on the fact that beycome helps homeowners save thousands otherwise spent on commission. Some readers may look at that and say, “I’m willing to spend extra to ensure the best deal.” However, it’s a misnomer to think a real estate agent is incentivized to do what’s best for the seller. Jodin says, “in just 15 years, the real estate industry drastically changed. It used to be more logical to pay 6% when the Internet wasn’t everywhere. Today, 92% of consumers use the Internet as their primary research tool. The 6% commission used to be due to promoting the property in newspapers or magazines, paying the office bills, etc. Now, in 2017, agents use this commission to buy leads from Zillow, Trulia, et. al. It truly makes no sense why owners would want to pay for this.”
According to award-winning economist Steven Levitt and New York Times reporter Stephen Dubner, co-creators of the bestselling Freakonomics franchise, data suggests most real estate agents are ultimately motivated to sell as fast as possible rather than for as much money as possible. Hardly the kind of system which benefits homeowners preferring to sell their property for the highest price they can achieve.
With this in mind, it’s clear to see beycome is providing homeowners with a level of transparency unparalleled in traditional real estate. There is no doubt about whether or not the person doing the selling is determined to get the best price, because the seller is the owner. Furthermore, beycome is not in the business of making money per sale and therefore has absolutely no incentive to do anything other than assist users in successfully selling their homes.
“So far, we’ve helped 347 beycomers (it’s what we call our smart homeowners) close their deals,” Jodin explains, “this has come out to approximately $4.8M in savings, and this is just our first year.” Jodin continues to elaborate how his company also closes homes at an average rate of 11 days earlier than the South Florida average, and has a 96.5% sale-to-list ratio; 2% better than industry standards, and 8% better overall, when including the 6% sales commission being saved.
Is beycome on track to reset the real estate industry one state at a time? That’ll depend on two things: the company’s ability to withstand the backlash generated by the traditional titans of realty, and the public’s eagerness to move away from commission-driven home sales. All signs point to both holding strong in the months and years beycome.
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