The 6 percent agent fee can add up to almost $15,000 for a home at the median list price of $245,000, according to data from Zillow. Because of this cost, roughly one in four sellers are choosing to go the “for sale by owner” route. Houzeo is targeting this market — people who want to sell their homes without paying an arm and a leg in commission fees.
While some of its services are available free of charge, the startup charges $399, plus an additional “success fee” of $599. These fees do not include costs for things like photographers, attorneys, escrow companies, and title companies, as they may bill for their charges separately.
Houzeo breaks the home-selling process into six steps:
- Listing and marketing your home.
- Pricing your home.
- Disclosures.
- Evaluating offers you receive.
- Escrow.
- Closing.
Automating as many steps as possible, and having the seller complete other steps digitally, makes the process easier and more cost effective. Also, by having a platform where the seller follows along with each step, and constantly sees where they are in the process, it eliminates the need for an agent or broker to walk the seller through the process. Houzeo is currently is its beta phase.
