AUSTIN, Texas, Dec. 7, 2021 /PRNewswire/ -- Michael Toth, Senior Vice President and General Counsel of REX, the leading pro-consumer digital real estate disruptor, challenged the National Association of Realtor's new "competition" portal as "lipstick on a pig," pointing to the portal's dubious claim that "higher commissions somehow lower costs for consumers."
In an opinion editorial published by the Washington Examiner, Toth writes: "In an era of disruptive innovation, real estate is a laggard…the housing sector remains stuck in the pre-Internet past. No other industry is mired in the same dismal combination of opaque rules, minimal transparency, and sky-high fees. In 2021, consumers will fork over $100 billion in real estate commissions—up 16 percent from 2020." A link to the op-ed can be found here.
Toth predicts that "the overcharging of American homeowners may finally see its day of reckoning" in 2022. Toth's prediction is based on the momentum behind consumer choice and policy changes that put consumers in control of how they want to buy and sell homes. The op-ed notes while "the Trump DOJ called out such egregious broker practices as the rule prohibiting the disclosure of buyer-agent commissions to homebuyers—the agents' own clients," the Biden Administration has amplified the effort, launching a twenty-part probe into the NAR and directing the Federal Trade Commission to address exclusionary practices in home sales.
Toth also points out that "real estate commissions in the United States are two to three times higher than in other developed nations around the world" and that " for every additional percent in real estate commission charged, more than two hundred thousand home buyers are priced out of the real estate marketplace."
Toth concludes by adding that that "the real estate gatekeepers—who spent $100 million on a losing lobbying effort last year—are now saying that if commissions are lowered, then buyers would bear additional upfront costs." This approach is reminiscent of the approach that the taxi lobby tried with Uber a decade ago. "The difference here," Toth writes, "is we're talking about a $400,000 median home sale, not a $20 taxi fare."
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REX, headquartered in Austin, Texas, is a real estate tech company resetting the traditional real estate market nationwide. When buying a REX home - or any home on the market in the U.S. purchased through REX - consumers have the peace of mind knowing they are finding residential real estate for less and saving time thanks to our groundbreaking technology. REX has emerged as the national leader in real estate reform since founding the company in 2016 with the goal of eliminating fees, growing the U.S. real estate market, and saving Americans billions of dollars each year. REX also works as a partner in the global fight against housing insecurity. Learn more about REX's online platform, integrated services, and business model at rexhomes.com. Also visit newsroom.rexhomes.com for the latest press releases, podcasts, market analysis, digital real estate data, and information about the company and leadership team.