Jay Thompson is a former brokerage owner who has spent more than six years working for the Zillow Group. He is also the co-founder of AgentLoop. He “selectively retired” in August 2018, but does not appear to have left the real estate industry behind. for him inman column It is published every Wednesday.
REX, the ‘discounted’ brokerage allegedly avoiding MLS while filing left-and-right lawsuits Close mediation operations.
Can. Or maybe not? The company is uncharacteristically quiet, although in some ways it makes sense not to issue a press release about your impending demise. So much for transparency.
While executives may be silently hiding in a room with a view, agents and support staff are actively looking for jobs according to many of Sources.
REX often makes headlines, but not so much for the things brokerages tend to like – sales volume, transaction aspects and number of agents.
Instead, REX gained attention to sue National Association of RealtorsAnd the Zillowand the Oregon. They may be involved in other lawsuits as well. Honestly, it’s hard to keep up with what appears to be the most active legal department in real estate. The number of lawsuits, counterclaims, and appeals that REX legal has concluded is mind-boggling.
Throw in some famous bait flicks to summon”real estate cartel” And the Blame it on Zillow In order to “hide” the listings, you have a brokerage that many agents love to hate. I mean, there were clients already Defense Zillow on some of Rex’s allegations!
REX’s business model appears to include no listings in the MLS, and avoidance of paying a joint-breaking fee to the buyer’s agent, while riding the disruption train as “Changing the way you buy and sell homes. “
Other than agents and ex-employees looking for work, the only conclusive evidence that REX has closed brokerage operations is the fact that their companies Texas broker license in inactive state. (Licenses in Arizona, Colorado, and Nevada still appear as active in those states’ real estate licensing databases.)
You cannot broker real estate without a valid license. The fact that Rex Doesn’t carry any listings It also provides strong evidence that his brokerage arm has stopped working. Other than this blank listings page, there is absolutely no indication on their website that they have stopped helping consumers buy and sell real estate.
This links the counter to the irony given REX’s statements that they are all within the reach of the consumer. When do you plan to let these consumers know that you can’t help them?
Rex still has the money
In an interesting twist, just a few weeks ago,Insured Technology Finance Pioneer PIUS announced for 10 million dollar insurance In REX financing, with an accordion feature that provides REX with an additional $35 million option. After news emerged that REX brokerages may be spinning into oblivion, I mentioned inman Joe Agiato, CEO of PIUS, told Inman, “PIUS makes an in-depth assessment of the company’s technology and intellectual property portfolio and, accordingly, PIUS secures the loan amount to provide larger amounts of capital at lower rates.”
Agiato said Rex “is still operating, albeit on a smaller scale. PIUS remains confident in REX technology, which is the foundation of our financial relationship.”
Reading between the lines here, it appears that this funding round is based on the REX technical group, not the actual brokerage operations. Good thing because all indications are that brokerages are no longer working.
What does this mean for the real estate industry?
Assuming that REX has indeed shut down its brokerage operations (and appears to have done so), the impact on the industry is negligible to even exist. Another brokerage failed. so what? It doesn’t sound harsh, but it happens all the time. This is not a simple industry, and profit margins tend to be very slim. Success is never a guarantee
While I’m not at all a fan of litigation going your way to growth and profitability – and let’s face it, litigation seems to be a top priority with REX – I don’t like seeing any business fail. People need jobs, and industry needs competition and new business models.
But in the grand scheme of things, a lower brokerage in the mix wouldn’t have any significant impact on the industry. REX agents, many of whom I’m sure are excellent performers, can suspend their license with another broker in a matter of minutes.
One thing REX has realized during this news cycle is that their legal antitrust pursuit of NAR and Zillow will continue. They did Hired prominent attorney David Boyce To continue carrying that torch. I have no idea what the Boies charge, but I bet it’s not cheap, nor does it do this for free.
Only time will tell what effect, if any, these legal fluctuations may have.
Should REX switch from direct brokerage to providing some kind of technical solution to the brokerage (or consumers), maybe that matters? Or maybe not.
It all depends on what this technology offers and the problem it addresses. Given that everything anyone knows about REX is drawn from abundant legal filings, we can’t say what their tech suite might offer.
I’m sure one day we’ll hear more from and about REX. If history is any indication, it will be limited to some lawsuits, counterclaims or appeals. Who really knows, or cares, what might await them as well.
But wait! stop pressing…
Less than an hour after this column was sent to the Inman editors, more news about REX has surfaced. And it wasn’t another lawsuit!
Watch the filming of Inman in “REX focus on single family rental market like Peace be upon you Mary‘, and Real Trends’ breaking story, REX remains as a facilitator for business owners. REX appears to have adjusted its focus to include institutional buyers in the single-family rental market.
REX Co-Founder and COO Lynley Sides, and REX General Counsel Michael Toth put the fault of mediation failure directly on Zillow, taking #BlameZillow to whole new levels.
NAR should also be to blame as they are accused in the REX lawsuit. I think when in doubt, point the finger at anyone except the one looking at you in the mirror.
Pivoting to help institutional/corporate buyers of rental properties would certainly not favor any REX agents. My guess is that those driving the REX through the storm don’t care what dealers think of the move.
There is still something about the collapse of the brokerage business or this new trend mentioned on the consumer-facing REX website. I think they should release a press release about this business model and customer base transformation, I clicked Its press pageI got a 404 page not found error.
Ditto for blog page. However, you can still buy a lot of Rex swag. Perhaps the employee who has a password to modify the site has been laid off? Perhaps REX thinks that offering consumers a phony interface is a good thing. Maybe they are just tired. Surely at some point, REX will let the consumer know that they can’t help it anymore. Only time will prove it.
Will this hub to help landlords make an impact on the real estate industry? barely. Institutional investors have been around since day one. They will still debate whether REX is successful with this new model or whether it will face the same fate as its brokerage operations.
Jay Thompson is a real estate expert and co-founder of AgentLoop who lives in the Texas Coastal Bend. follow him FacebookAnd the Instagram And the Twitter. He holds an active broker license in Arizona with eXp Realty. He has been called “the hardest-working retiree ever”, as founder Jay. He writes, speaks and advises on everything related to real estate.