It’s 2020, Why Are So Many Homes Still Bought and Sold like it’s 1920?
Here’s why 2019 was a pivotal year for Reali
By Amit Haller, Reali CEO
That title may sound like an exaggeration, but the residential real estate business continues to operate like it’s from another time, with unnecessary complications, fees, and a lack of transparency at every turn. While technology has improved many industries, why hasn’t it helped real estate? Even recent tech investments in the real estate industry have not changed the fundamental dynamics of an outdated process. The industry continues to benefit from the unnecessary stress and financial burden put upon the very customers who make the business possible in the first place. In 2020, Reali will continue to change the dynamic by putting home buyers and sellers first, reducing the level of stress and even make it fun for people who work in the industry.
Think about this: almost half of a 20 percent down payment (the life savings for many people!) goes towards commissions and service provider fees trying to recoup their own customer acquisition costs. We think there’s something wrong with that.
Reali believes every customer should have a simple, stress-free and affordable experience when buying or selling a home. We’ve built a vertically integrated business and technology platform – we’d like to call it a single solution – to increase transparency and efficiency while reducing the costs and stress. In one year, we’ve grown our business 5x and have saved our customers nearly $10 million by making the process more seamless, transparent and fun. We reward our customers with less stress and cash back, and our agents win because instead of doing paperwork, they focus on what’s most important -- helping people buy and sell homes. NAR studies have indicated 89% of what most real estate agents do is the stuff where they are not actually working with customers.
2019 was all about building a single solution for Reali customers
2019 was a pivotal year for Reali as we grew in headcount and product offerings to build out a single solution for customers. Our team doubled from 75 employees to more than 145, and we’re always looking for people who share our passion and vision. We also increased our geographic coverage in California and we introduced Reali Loans thanks to our acquisition of Lenda which allows us to provide competitive mortgages in twelve states.
Reali Loans was a significant step forward in building our single solution for customers. We started Reali by highlighting cash back offers on every property, letting customers know just how much money they can save by working with Reali. But cash back was always just the start of demonstrating how much money buyers can save.
Last year we added two new ways to save – Reali Trade-In and Reali Cash Offer – to help customers buy and sell at the same time and win homes in very competitive markets. We’re addressing real-world needs with real estate programs designed to maximize the value of the customer’s money. We’re seeing significant demand for these innovative products and offer them to home buyers and sellers without a premium. Competitors who offer similar products charge hefty premiums, and traditional agents can’t even compete here.
Let’s not forget about Reali Escrow. With our launch of escrow services. Reali is adding more convenience, cost-savings and stress reduction for buyers and sellers at a time in the transaction when many customers are left in the dark.
With each new product we introduce, Reali is truly changing the way people buy and sell homes.
What’s next for real estate and Reali?
2020 is going to be a year of truth for real estate.
In their 2019 survey of home buyers and sellers, the NAR found that there was a median of only 15 miles between the homes that recent buyers purchased and the homes they moved from (page 7 of the Summary). That doesn’t mean all buyers, but that proximity strongly suggests that buyers are staying “home” when they move. With mortgage rates remaining historically low and inventory still limited in most markets, the people who want to buy and sell need help like never before. We already know we can leverage Reali’s platform and approach to help more people buy and sell homes with less stress. And it’s 2020, so it’s about time somebody did it.
Reali is on track to stay ahead of incumbents with many opportunities ahead.
Our team will focus on refining Reali’s customer-first approach and develop new ways to help home buyers and sellers save time and money. We’re also eager to share customer stories and meet more buyers and sellers in communities across California through open houses and community events -- stay tuned!
In a recent survey conducted by our team, we found that over 1,100 random people polled in California listed Reali as a top real estate brand to buy or sell a home. Reali’s brand awareness is 40% of Redfin and 80% of Compass. That signals to our team that our brand awareness is strong and there is only potential for more growth as customers crave a new way to buy and sell homes.
2020 will be a year of continued innovation and technology offerings with more in-app functionality and features for buyers and sellers. We are committed to transparency and full-service real estate at every step and welcome growth beyond California to help bring about real change for home buyers and sellers that is long overdue.