A Utah-based flat-fee brokerage is joining the fray in Denver.
Homie, which started in Salt Lake City in 2015, is currently Utah’s leading brokerage by sales volume. The firm launched its services in Denver last month.
“We recognize that the real estate machine is well established,” said Melissa Millan, the company’s general manager in Colorado. “We just think it’s time for a change, and one that benefits the consumer.”
The online real estate brokerage, which also has outposts in Nevada and Arizona, charges sellers a flat fee of $3,000 to market and sell their home — unlike Realtors’ usual 3 percent commission fee.
“Let’s say your house sells for $560,000, that’s about $33,000 that goes to the agent,” Millan said. “Instead of that 3 percent on the seller’s side, you just pay $3,000 as the seller-agent commission. And on average a home client saves $10,000. With Denver’s prices continuing to rise, I anticipate our average looking more like $13,000.”
To set itself apart from other flat-fee brokers, Homie has a staff of dedicated agents that will guide buyers and sellers through the whole process. It also offers loan, title and insurance services.
“Different competitors offer different amounts of service,” Millan said. “Homie is unique in the fact that you get one primary point of contact to help simplify this complex process. You’re not touring with one agent and putting an offer in with another one.”
Flat-fee brokers already in the market include Denver-based Trelora, which launched in 2011, Redfin’s Redefy, and BlueMatch, which launched in Denver in 2015.
If buyers purchase a home from a non-Homie seller, who has already agreed to pay a certain buyer-agent commission, Homie will refund up to $2,500 that back to the buyer “for that new upgrade or just to have some extra money for furniture,” Millan said.
“If someone were to sell and buy their home through Homie, they could save more than $20,000,” Millan said.
Homie’s real estate services are available in Denver and throughout the region, including Arapahoe, Douglas, Jefferson, Adams, Broomfield, Boulder, Gilpin, Clear Creek, and the southern part of Weld County.
“Most home searches — I think I read around 97 percent — start online, so we obviously have transitioned away from needing an agent to give you access to the listing,” Millan said. “Consumers are doing the leg work themselves, but are still paying those legacy commission rates. And that’s one of the reasons Homie believes this is an industry ripe for disruption on behalf of the consumer.”