The changes to how real estate commissions are advertised and sourced as a result of the National Association of Realtors’ proposed settlement has led to the creation of Shay, an application to help homebuyers avoid the traditional sales model.
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The changes to how real estate commissions are advertised and sourced as a result of the National Association of Realtors’ proposed settlement has led to the creation of Shay, “the first self-representation platform for homebuyers,” according to an August 17 press release.
The company said its intent is to allow homebuyers to buy a home without the insight of a traditional agent.
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“Homebuyers finally have greater visibility and control over how much they pay their real estate agent,” says Peter Jeffrey, founder and CEO of Shay. “For the many homebuyers who find the cost of traditional representation too high, Shay guides them through the process of representing themselves. We are excited to support the next generation of homebuyers and save them tens of thousands of dollars.”
The software experience provides detailed guides on the sales process, offering tips and resources on what it takes to find a match, effectively negotiate, find a mortgage and step through escrow. Through task lists, guides, articles and an artificial intelligence solution, “Shay enables homebuyers to complete critical real estate tasks including generating offers, conducting local due diligence, negotiating and reviewing agreements,” the release stated.
Jeffery said paying a fixed percentage when buying a home is a “bad idea.”
“We enable homebuyers to save money by doing it themselves. This is similar to how TurboTax gives tax filers an alternative to accountants or Expedia gives travelers an alternative to travel agents. Shay offers a new solution for homebuyers to save money on an already incredibly expensive purchase,” Jeffrey said.
Shay is available now for a flat fee of $500 with additional funds required for more services.
A number of companies are emerging with tools and pitches on how to overcome commission settlement-related changes for both consumers and agents. Some are sharing which sellers are offering commissions and others are providing more comprehensive approaches to assist both agents and consumers.
For now, experts agree that simply following the guidelines in the temporarily approved settlement are best, which include not advertising a buyer-broker commission in a NAR-affiliated listing advertisement and ensuring execution of a buyer-broker agreement that clearly spells out the payment structure.
In an Aug. 17 interview with Inman, lead settlement attorney Michael Ketchmark said everything is still playing out, and that eyes are on the industry.
“[… F]rom our standpoint, everything’s just been set in motion, and we’re sitting back waiting for it to take effect. We believe it’s going to take a while for the free market to adjust to this and for us to see commissions start coming down. But we fully expect that’s what’s going to happen.”
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