Anyone who’s been through the homebuying process knows just how difficult it can be. Home search apps like Trulia, Realtor and Zillow have helped make finding a new house somewhat simpler. However, in some ways these apps have done more to complicate the process for realtors in their effort to make house-hunting easier for buyers.
One tech startup is helping address the pain points associated with buying a new home for both realtors and buyers to create a truly simplified and transparent process. Charlotte startup LemonBrew, which recently relocated its headquarters from Hoboken, NJ, matches homebuyers to the right realtor, helping them find their dream homes quicker while providing realtors access to more qualified leads.
The Homebuying Process’ Historical Shortcomings
Reno Heine, LemonBrew’s CEO, has been in the realty industry for 22 years. In that time, he’s had plenty of first-hand experience that points to the homebuying process’ historical shortcomings.
“When people are thinking about buying a house, they just get realtors they know or that someone else knows within their circle of friends and family,” Heine said. “But they’re not finding the ones that truly specialize in their needs.”
This remains true even when homebuyers find realtors through home search apps and websites. While these apps can connect homebuyers to realtors, they don’t ask searchers important questions that determine whether or not they’re a qualified lead for an agent. But because the current realty landscape is so reliant on these apps, realtors are forced to pay thousands in monthly subscription fees to get connected to leads that no longer come to them directly.
“Realtors get put on monthly subscriptions paying sometimes $10,000 to get 35 leads, but only two of those leads might end up being real clients they can transact with,” said Heine. “When clients aren’t properly vetted or qualified, it becomes a real problem for realtors from an efficiency standpoint.”
LemonBrew is addressing this problem by asking homebuyers important questions upfront so they can then connect with the realtors that are best suited to their specific needs. Not only does this provide realtors with more qualified clients, but homebuyers reap the benefits of establishing a relationship with someone who specializes in selling homes that meet their qualifications.
More Than Match-making
Solving pain points for realtors’ access to qualified leads is just one aspect of LemonBrew’s capabilities: Because the platform simplifies the process so much for realtors, homebuyers reap the benefit of gaining a rebate to cover their closing costs.
“When a seller lists a property with an agent, they pay between 5% and 6% to the seller agent,” Heine explains. “But when a buyer agent brings in a client to purchase the home, that commission is split between the buyer and the seller agent. Because we’re a more efficient process for realtors and make their jobs easier, we have contracts established that any realtor you get matched with will give you a rebate to cover closing costs.”
That means the day you close on your new house, you could receive between $1,500 and $2,000 that realtors are taking from their commission and paying it forward to you.
“We got pushback from others saying that realtors would never do that, but realtors believe in efficiency and are tired of leads that are unqualified,” Heine said. “In the last 90 days, we’ve signed up 3,000 agents, showing us they don’t have a problem with it at all.”
LemonBrew also provides mortgage and titling services to homebuyers, enabling a one-stop shop experience for all the steps in the homebuying process.
“In the past, you had one realtor, a different person to handle the mortgage, then that mortgage company might have picked the title company involved,” Heine said. “We have all three so it makes it easy and simple for the client.”
While LemonBrew doesn’t currently offer home search capabilities, the company plans to integrate these tools by this summer. In addition, the company plans to develop even more partnerships with realtors throughout the nation, with the goal of becoming licensed in 38 states by the end of 2020.
