Better Real Estate, the in-house brokerage of New York City-based Better, announced it is expanding to Michigan and Alabama. // Stock Photo
Better, a New York City based digital home ownership company, announced its real estate arm, Better Real Estate (BRE), is expanding to Michigan and Alabama, making the company’s in-house brokerage available to home buyers and sellers in 26 markets across 16 states, with plans to expand to 20 states by the end of 2021.
BRE licensed agents are salaried and incentivized to satisfy customers rather than to close transactions in the pursuit of a fast commission. Agent commissions usually total around five to six percent of a house’s sale price, allowing customers to save the traditional agent commission — approximately $21,798 on the current median home price of $363,300.
The agents have a strong base-salary coupled with client service quality-linked incentives that can lead to an annual income of more than $120,000, double the average agent salary.
“Removing friction and costs for consumers is a critical component for our customers in what is a complex, emotional, and expensive transaction, arguably the biggest financial transaction most of us will make in our lifetimes,” says Vishal Garg, CEO and founder of Better.
“Our goal is to democratize the American dream of homeownership by making the process faster, easier and cheaper for all, as the status quo is antiquated and in dire need of being replaced. That’s what we hope to accomplish as we continue our footprint across the United States.”
Along with the savings, Better offers its real estate customers mortgage and insurance services through Better Mortgage and Better Settlement Services. Customers that choose Better Mortgage will receive and additional $2,000 discount in lender credits.
The company also offers an appraisal guarantee that ensures mortgages through Better’s sister company are funded at the original terms — including down payment, APR, and monthly payment — regardless of the final appraised value.
“In today’s competitive housing market, every dollar saved counts, and we’re proud to bring our non-commission model to Alabamians and Michiganders in our quest to make homeownership simpler, faster, and cheaper for all Americans,” says Christian Wallace, head of real estate services at Better.
BRE has seen its customer headcount double over the last year, with more than $8 billion in real estate transactions across its in-house brokerage and partner network. Michigan and Alabama mark the 15th and 16th states in the company’s nationwide expansion. It is currently seeking agents in both states. It plans to hire 500 salaried agents in 25 states by November.
The company was founded in 2016 and has funded $30.9B in home loans and provided over $7B in cumulative coverage through Better Cover and Better Settlement Services, the insurance divisions of Better. Better has raised over $400M in equity capital since inception.