It has come to light in recent days that REX was the ‘power behind the throne’ in the Department of Justice’s lawsuit against NAR (and subsequent settlement). The suit alleged that the trade group’s rules on commissions artificially inflate the fees paid to real estate agents and put illegal restraints on competition in the market. So, what inspired the upstart firm to take its concerns to the DOJ?
Jack Ryan is the co-founder and CEO of REX, the digital alternative to the residential real estate agent. REX uses big data and AI to provide consumers with significant cost savings and improved customer experience. On this episode of the Industry Relations, Jack joins Rob and Greg to explain why REX went to the Department of Justice and address the perception that his team is hostile to organized real estate.
Jack offers his take on why a commissions drop is not bad news, describing his libertarian vision of the future of real estate and how all involved would benefit—including MLSs, brokers, agents, consumers, and communities. Listen in for Jack’s insight on eliminating the friction from the home buying process and find out what would have to change for REX to join the MLS.
Why REX went to the DOJ with NAR’s ‘illegal restraints’ on competition in the market
What differentiates REX from other residential real estate brokerages
What’s behind REX’s decision not to join the MLS
Eliminating repetitive, standardized activities to make the real estate transaction more efficient
What the REX workflow looks like from a buyer’s perspective
Why Jack is more concerned with changing the system than making money
Jack’s argument that a commissions drop is not bad news
How Jack thinks about eliminating the friction from buying and selling a home
How a seller benefits from working with REX in terms of cost savings and level of service
The perception that REX is hostile to organized real estate and what would have to change for Jack to join the MLS
Jack’s libertarian vision around the future of real estate
How REX’s AI continues to improve and Jack’s intent to make the tech available to other brokers and agents
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