A new proptech startup seeks to save homebuyers thousands of dollars in agent fees by providing a platform that lets them bypass the 3% commission typically charged by real estate agents.
Landian, founded by Josh Sitzer, Bryce Galen and Neal Batra, enables prospective homebuyers to get a push-button home tour or purchase offer from a local agent for a flat fee of $49 per tour and $199 per offer. “On average, our customers can save about $15k, equivalent to a year of mortgage payments, compared to the traditional 3% buyer agent commission,” the company’s website states.
Sitzer is one of the homeowners who in 2019 filed a class-action lawsuit against the National Association of Realtors (NAR) and several large real estate brokerage firms alleging anticompetitive practices that resulted in home sellers coughing up inflated commissions to brokers and agents throughout the U.S. The NAR agreed to pay $418 million to resolve the litigation.
In an interview with TechCrunch, which broke the story about Landian’s unveiling, Sitzer indicated that he launched the new platform to help homebuyers take advantage of the rule change stemming from the lawsuit. Under the settlement, the NAR agreed to scrap the “Participation Rule” that required listing agents to offer compensation to buyers’ realtors.
In addition to home tours and agent-written offers, Landian sells AI-powered offers for $99, as well as exclusive agent packages, which include up to five tours and two offers, for a $1,799 flat-fee commission. The company does not include attorney fees in its services. Landian says its services are economical because of its pay-as-you go model. The company’s agents earn money for every service they provide – as opposed to traditional agents, who earn income only when they close (10% of the time). Landian also uses AI-powered tools to streamline tasks like tour scheduling.
Headquartered in Wyoming, Landian works with properties that can be found on major listing sites, allowing users to paste a link into the platform to import the listing and begin a tour request or offer. “Landian’s intuitive interface is great for first-time buyers,” the company claims.
“The platform demystifies the offer process, offering clear instructions and the option for customized help from the support team, making it accessible and user-friendly for a broad range of buyers.”