Homebuyers are saving big by swapping real estate agents for simple alternatives
HOMEBUYERS are secretly saving thousands of dollars and closing on homes all without using a real estate agent.
Instead, buyers are utilizing artificial intelligence to complete the home-buying process from start to finish.
Prospective buyers in Florida used artificial intelligence to search listings, generate offers, and draft contracts, according to The New York Post.
At least 10 homes have used AI to complete the purchase, and several other homes are in escrow using AI, according to the Tech startup Homa.
The AI platform allows buyers to represent themselves, saving them money by avoiding a real estate agent’s 2.5% to 3% commission.
In Tampa Bay, a homeowner said he saved $10,500 on a buyer’s agent commission.
DJ, 32, bought a $420,000 home in Tampa Bay using the AI platform.
“Once I heard about this, I was like, let me just go down this route,” DJ told the outlet.
“They pretty much walk you through the whole [thing] step by step, and you can end up saving at least 2.5% on your final purchase price.”
Another home buyer said she saved $8,000 after purchasing a home in Vero Beach.
“I just dove right in,” home buyer Vicki Lynn said.
“The contract system was similar to TurboTax — filling in the blanks. Very straightforward.”
Arman Javaherian, a former senior product director at Zillow, founded the AI-powered home buying platform.
“At Zillow, I saw firsthand a lot of inefficiencies in the process,” Javaherian said.
“Homebuyers are going on search sites, finding the homes themselves, doing all this legwork — and then these agents come in and make $10,000, $20,000, $30,000.”
Javaherian said he was motivated to create his own platform after the National Association of Realtors’ March settlement requiring buyers to sign contracts with agents before visiting homes.
“For the first time, buyers are seeing in black and white how much buyers’ agents get paid,” Javaherian said.
“A lot of them are taking a step back and looking for alternatives.”
Homa offers a free option and a paid tier at $1,995, which includes a licensed broker assigned to the deal.
The paid tier helps protect buyers from listing agents trying to pocket commission from both sides, according to Javaherian.