Bay Area startup replacing real estate agents with Reali app

Not sure if this is a window into the future or not caught it today on ABC news Reali is attempting to get one step closer to eliminating the Agent.

Bay Area startup replacing real estate agents with Reali app — ABC KGO News link

Reali – Promotion Video

PALO ALTO, Calif. (KGO) – A Bay Area startup is aiming to shake up the real estate industry.

A new app called Reali could have homes practically selling themselves.

Like
every industry, technology has changed real estate, but never quite
like this. Buyers don’t need real estate agents. The house just shows
itself.

Sellers get a kit with beacons that let you tour the
house at your own pace using your phone. They even play music they think
you’ll like.

They can answer questions by text or phone call,
but aside from some well-placed security cameras potential buyers are
all alone.

You can place bids in the app and see what you’re up
against. And when it’s all over, you get the commission as a cash
refund. Watch the video above for Jonathan Bloom’s full report.

I read about Reali on BI yesterday I think?

It won’t work. Reason is simple. Buying or selling a house is easily the BIGGEST transaction a normal person does their entire life. There are all these legal crap too. Remember how big those stacks of papers we have to robotically sign through? It’s very daunting. People want to rely on a real human being to guide them through. Not with a cute little app.

Agreed, there may be advances in the real estate field but as @manch mentioned a home is easily the most expensive thing someone will ever buy probably in his/her lifetime. To think that we will willingly relinquish that interaction with real estate professionals (advisers) on such an expensive purchase is nonsense. Maybe this will drive down the broker commission levels which we all despise…

Redfin has gone thru this learning curve itself. At first it was very stingy with human contacts. Like the agents you tour with aren’t the ones you deal with later on etc. Now they are dialing up the human contacts. People need pros to hold their hands. I remember the first time I read thru inspection reports I freaked out about tiny little things. Right, now that I have a handful of times I know what to ignore and what to pay attention to. At first I did not.

Buyers need input on whether this house is a good buy. Can an app tell you that? Don’t think so.

This has all sorts of wrongs built in. I really hope it fails fast. It’s wasting people’s time and money.

I’m in total agreement with you, the internet has changed the home buying process allowing the avg person to become more knowledgeable. But the Agent is still very much in the process to close the deal. One area i can see it being used is for buyer the comfort view a many homes without an agent then contacting there Agent when ready to buy.

2mil is a drop in the bucket in funding but will be interesting to follow if Reali can capture enough biz to stay around for a while. But for now i won’t even take the time to install the app (on my always out of memory iPhone 5) I’ll check back in 6 months to see what it looks like.


Reali, a San Mateo, CA-based real estate technology startup, raised $2m in seed funding.
Investors include angels Oren Zeev, Warren Weiss and Yuda Doron and
firms Liquid2 Ventures led by Joe Montana, Mike Miller and Michael Ma,
and Dragonfly Investments Group.
The company intends to use the funds to grow its engineering team and expand into new real estate markets.
Founded in 2015 by experienced real estate developers and high-tech
entrepreneurs Amit Haller and Ami Avrahami, Reali is a mobile real
estate marketplace that matches buyers and sellers and features such
tools as search and analysis, in-app bidding and live expert chat. In
addition, an innovative buyer experience which leverages Bluetooth
beacons guide the user through an available home.
The company will now introduce offerings in select San Francisco Bay
Area real estate markets, such as Palo Alto and East Palo Alto. It will
later expand to Mountain View, Menlo Park and Los Altos.

Again, people can’t invent anything new!!! They have to copy or improve ideas already tried and probably failed…

As an analogy, how many freaking remakes/redos of Spiderman (movie) before you move on to something new???

Joe Montana is now a VC? smh…

None of its backers are first tier VC’s. I don’t think they are even 2nd tier…

Well, he wasn’t an investor but he was a poster boy for the Millennium Tower too…

Not sure the Golden Boy is still golden…

The cost of a real estate transaction is more about lawyers than realtors…CAR has a team of lawyers that revise the puchase agreement forms by the hour…The seller beware disclosure requirements have increased anxiety and paperwork ten fold…A silly tech app doesn’t deal with these issues…

“Your offer has been accepted!” appears almost instantaneously…[quote=“Sweat_Equity, post:1, topic:1036”]
You can place bids in the app and see what you’re up
against.

[/quote]

This would be nice if it were possible.

It would be nice if the commissions come down a bit due to more competition… 5/6% right now… ouch

4-4.5% is the industry standard now. Redfin does 4% I think. And many realtors will offer you discounts if you ask.

Yea, I have talked to couple of realtors that are willing to take on with 4.5% – still a lot of money! In that regard, I prefer the split from Canda 7% for first 100K, and 2.5% for the rest. I feel like that’s fair for range.

In this market and area, one would be crazy to not only ask but require it. That holy 6% standard is a dinosaur!!!

A long time neighbor that moved away to AZ said they were working with a realtor that was so nice to only charge 6% on what ended up being a transaction in the $2 million range. He was under the impression that realtors typically charge 10%. Looking back I should have told him how off he was… The realtor that represented him sold it off MLS and the property was not a tear down.

For buying, last time I used
https://www.openlistings.com/

Simply refund 50% of what openlisting got, so out of the 2.5% commission, openlisting refunded 1.25% to me. The transaction was very smooth.

I am looking for similar deep discount realtors for selling too, let me know if anyone can beat redfin’s 4%, I want to know.

Does Redfin pay for staging?

Based on how it say on their site, I am assuming No for staging: Why Sell My Home with Redfin | Redfin

Hmmm, that seems like a pretty good deal. Thanks @ed-lo

You guys are buyers, why bother with commissions? Can ask your buyer’s agent to give you back money?