HERNDON, Va., June 21, 2016 /PRNewswire/ -- "This isn't a figment of anyone's imagination anymore, because we're here," said Artin Afsharjavan, the CEO & Chairman of Afshar Javan Capital Management, the principal investor in a new kind of residential brokerage model. "Welcome to Federated Realty. We're real, we're in business, and we're set to disrupt the $125 billion residential sales and brokerage market."
"Our model is very simple, cut the waste and save homeowners money," said George Lodge, Federated Realty's Principal Broker. "A typical commission is 3% paid to the guy in a suit and tie doing the same thing we do for $1,000. Even with players like Redfin, you're still paying out a commission of around 1.5% of the sale price of your home. Why waste the money?"
The $1,000 service fee which is paid only when the home is sold guarantees the listing of a home on more than 200 sites, and an agent dedicated to selling that home. It also comes with an opt-out clause - a homeowner that isn't quite satisfied with the arrangement has the option of cancelling at anytime.
"Apart from online listings, or aggregators of listings or content, the residential real estate business is still very nascent in its use of digital networks and technology. We're essentially looking to do to the business of selling real estate, to long-term players like RE/MAX, Long & Foster, and Keller Williams Realty, what Netflix did to Blockbuster," said Afsharjavan.
Sales volume across the Washington, DC-metro area in May 2016, according to industry analyst Real Estate Business Intelligence, was just over $2.8 billion, up 11.4% from May 2015. The closed sales last month of 5,432 homes also made it the 18th consecutive month of year-over-year increases in closed sales in the region.
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About Federated Realty
Federated Realty, LLC, is a real estate brokerage house representing sellers of residential real estate in the Washington, DC metropolitan area. It officially began operations in June 2014 as a sole agent for the development company Federated. But expanded to retail homeowners in June 2016. It is currently focused on Maryland and Virginia with hopes to expand in other markets later this year.
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SOURCE Federated Realty