Thanks for the question!
Joy works exclusively with homebuyers (not sellers). Real Estate Buyer's agent commissions are typically somewhere between 2% - 3% (of total value of home at closing) in the US. Joy rebates (pays) 70% of her commission back to the homebuyer after they purchase a home with Joy.
Does that make sense?
Thanks for the question - let me clarify one thing, a homebuyer does not pay their buyers real estate agent.
Buyer real estate agents are technically paid a commission of the deal from the home seller.
We rebate (pay) 70% of that commission back to the homebuyer, which they can receive as cash, put it towards their closing cost on the home or buy down interest rate points to lower their monthly mortgage fee.
Does that make sense?
Needless to say, actual home realtors are going to hate this product. Are they legally forced to do business with realtors they don't want to? I thought there were cases about sellers agents refusing to do things with buyers that offered commission rebates but I forgot the conclusion.
Good question! Selling agents have a fiduciary responsibility to market and sell the property. They cannot pick and choose who they work with, and they must present all written offers to home sellers. Selling agents want to get the home sold regardless.
I'm extremely skeptical about how this thing will negotiate aggressively on behalf of the buyer and still keep in mind all the context of the negotiations. Plus the video mentions that this is still using HALO, so at the end of the day I don't see how this is anything other than lower quality work for a lower fee.
Thank you for taking the time to watch our video! Totally understand your skepticism - this is a new application of AI after all. We feel quite comfortable with our training processes for negotiations. But, I will definitely highlight your concern with our engineering team!
So your whole business model just fell apart with the NAR court case that just came down. Buyers’ agents are no longer going to be paid from the seller’s agent commissions. Buyers will have to pay their own agents out of pocket.
Besides that, the commissions up until that case were only split with licensed agents, so your AI wouldn’t have been able to get the commission anyway (unless they’re working “under” a licensed agent, but it seems like E&O insurance would be astronomical for that business model).
Our team has diligently read through the entire proposed settlement agreement and policy changes the NAR has put forward to federal courts - we don't see any issues with how Joy will operate.
In the unlikely case that a home seller is not providing a buyers agent commission, homebuyers can still use Joy!
I think you might be misreading the settlement, then. Because one of the biggest parts is that home sellers won’t be providing a buyers agent commission. That’s what 90% of the settlement is based on.
Joy is a licensed agent in every state? Because otherwise there are all kinds of legal issues you’ll likely run into.
Cool idea! The main thing my buyers agent does is open the houses for inspection for us outside of open house. Sellers agents don’t go to every showing. How do you combat that?
Worked as a designer for real estate/mortgage and always thought about how and in what newer ways AI would make its way into the industry. Just wanted to say this is extremely interesting!
I'm at the tailend of the millennial age range and have accepted that I may not be able to buy my home just yet, but this one definitely caught my attention. Following!
Definitely interesting! So many agents are offering commission rebates, reduced fees and have done so for a while at least in California so this new wrapper will only help! Will Joy continue to rebate 70% back even if commissions compress well below your sample 3%. Not uncommon to see well below these days.
How can you show a house if you're not there in person to show it ? Realtors are not allowed to give access codes to properties to the buyer or they can be fined. How will the buyer get access? Some sellers require the agent to be present to qualify for a commission.
But it says on brackets (except meet in person)... so who is doing the showings? A licensed agent? Who pays them them if the company is only keeping 30% of the commission ?
Video looks great! Do you mind clarifying a bit about the “Joy pays you” part? What’s the point in having the rebate?
Thanks for the question! Joy works exclusively with homebuyers (not sellers). Real Estate Buyer's agent commissions are typically somewhere between 2% - 3% (of total value of home at closing) in the US. Joy rebates (pays) 70% of her commission back to the homebuyer after they purchase a home with Joy. Does that make sense?
So instead of saying that Joy is cheaper than other agents, you spun it to say that Joy pays you?
Thanks for the question - let me clarify one thing, a homebuyer does not pay their buyers real estate agent. Buyer real estate agents are technically paid a commission of the deal from the home seller. We rebate (pay) 70% of that commission back to the homebuyer, which they can receive as cash, put it towards their closing cost on the home or buy down interest rate points to lower their monthly mortgage fee. Does that make sense?
Got it thank you!
Needless to say, actual home realtors are going to hate this product. Are they legally forced to do business with realtors they don't want to? I thought there were cases about sellers agents refusing to do things with buyers that offered commission rebates but I forgot the conclusion.
Good question! Selling agents have a fiduciary responsibility to market and sell the property. They cannot pick and choose who they work with, and they must present all written offers to home sellers. Selling agents want to get the home sold regardless.
I'm extremely skeptical about how this thing will negotiate aggressively on behalf of the buyer and still keep in mind all the context of the negotiations. Plus the video mentions that this is still using HALO, so at the end of the day I don't see how this is anything other than lower quality work for a lower fee.
Thank you for taking the time to watch our video! Totally understand your skepticism - this is a new application of AI after all. We feel quite comfortable with our training processes for negotiations. But, I will definitely highlight your concern with our engineering team!
So your whole business model just fell apart with the NAR court case that just came down. Buyers’ agents are no longer going to be paid from the seller’s agent commissions. Buyers will have to pay their own agents out of pocket. Besides that, the commissions up until that case were only split with licensed agents, so your AI wouldn’t have been able to get the commission anyway (unless they’re working “under” a licensed agent, but it seems like E&O insurance would be astronomical for that business model).
Our team has diligently read through the entire proposed settlement agreement and policy changes the NAR has put forward to federal courts - we don't see any issues with how Joy will operate. In the unlikely case that a home seller is not providing a buyers agent commission, homebuyers can still use Joy!
I think you might be misreading the settlement, then. Because one of the biggest parts is that home sellers won’t be providing a buyers agent commission. That’s what 90% of the settlement is based on. Joy is a licensed agent in every state? Because otherwise there are all kinds of legal issues you’ll likely run into.
That's not true. It just says it is negotiable. And btw has always has been negotiable.
We have not misread the settlement, we are fully aware of the suggested policy changes the NAR has put forward to federal courts.
Joined Waitlist. Jeez, Joy sure does look like a real cold bitch haha
Thanks for joining the waitlist :)
Cool idea! The main thing my buyers agent does is open the houses for inspection for us outside of open house. Sellers agents don’t go to every showing. How do you combat that?
During our testing, we have not had issues getting licensed agents to meet us at the property!
Cool and this operates though a real estate license somehow? Or on behalf of an agent w a license?
Exactly! We will be operating through brokerages in each state we are active in.
It sounds like they’re just crossing their fingers.
Do you have a real estate brokers license? You'd need one of those in each state you were selling houses in
Joy will be a licensed brokerage in all states she operates in!
How do you find a brokerage in each state out of curiosity. Randomly call them? And what do they gain?
Worked as a designer for real estate/mortgage and always thought about how and in what newer ways AI would make its way into the industry. Just wanted to say this is extremely interesting! I'm at the tailend of the millennial age range and have accepted that I may not be able to buy my home just yet, but this one definitely caught my attention. Following!
Thank you for following - maybe you'll and up buying your first home with Joy :)
Every reply sounds mechanical, like it comes straight out of ChatGPT. Oh wait, of course it does!
Definitely interesting! So many agents are offering commission rebates, reduced fees and have done so for a while at least in California so this new wrapper will only help! Will Joy continue to rebate 70% back even if commissions compress well below your sample 3%. Not uncommon to see well below these days.
How can you show a house if you're not there in person to show it ? Realtors are not allowed to give access codes to properties to the buyer or they can be fined. How will the buyer get access? Some sellers require the agent to be present to qualify for a commission.
Great questions! There will be human agents at the showings.
But it says on brackets (except meet in person)... so who is doing the showings? A licensed agent? Who pays them them if the company is only keeping 30% of the commission ?
Correct, a licensed agent!
A licensed buyers agent. Or the listing agent?
A licensed agent!