Reali, a tech-focused real estate startup that charges flat fees for both homebuyers and sellers, is now offering one of the nation’s smallest transaction fees in one of the nation’s most expensive real estate markets.
Reali announced this week that it is rolling out a new program that will help certain California buyers and sellers buy or sell their home for only $950.
The $950 transaction fee applies to homes listed under $250,000 and is available in any of the markets Reali serves in California, including Sacramento and Solano counties, and the San Francisco Bay Area.
According to the company, the $950 transaction fee is not a stripped down version of its services.
“Reali delivers the same superior service, data and guidance – including in-house licensed real estate professionals who offer expertise, an innovative app that guides people through the process, and a marketing team – all for no commission, versus the traditional real estate model,” the company said in a release.
Reali also offers a full 2.5-3% cash back bonus of the buyer’s agent commission, along with flat fee pricing.
“We’re the only disruptor to offer this amount of savings and cash back to buyers. We want to support our local communities and make it easier for people who are encountering the rising costs of owning a home in California,” Amit Haller, Reali’s co-founder and CEO, said.
“This puts more money in the pockets of buyers who can use the savings to augment their down payment, make future payments or furnish their new home,” Haller added. “We’ve created a different real estate model where buyers and sellers can save money and experience a transparent and open process.”
The company offers its flat fees for buyers and sellers alike.
Homebuyers get a cash back refund of the entire buyer agent commission (typically approximately 2.5%) at the close of escrow and are charged a small transaction fee based on the listing price of the home: $950 for homes up to $250,000, $4,950 for homes up to $750,000, or $9,950 for homes over $750,000.
Sellers’ fees are the same: $950 for homes up to $250,000, $4,950 for homes up to $750,000, and $9,950 for homes priced at more than $750,000.
The company claims that on a home priced at $200,000 in Sacramento, a Reali buyer would save up to $6,000 on the agent commission and receive it as a cash back bonus, minus the company's $950 flat fee.
That adds up to a cost savings of $5,000, or more than 12% on a typical 20% down payment.
Last year, Reali raised $9 million to help it grow its business in California.