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NAR Rule Changes - reAlpha’s Growth Opportunities
DUBLIN, Ohio, Aug. 19, 2024 (GLOBE NEWSWIRE) -- reAlpha Tech Corp. (Nasdaq: AIRE) (“reAlpha” or the “Company”), a real estate technology company developing
About this update from Realpha Tech Corp.
[{"type":"text","content":"DUBLIN, Ohio, Aug. 19, 2024 (GLOBE NEWSWIRE) -- reAlpha Tech Corp. (Nasdaq: AIRE) (“reAlpha” or the “Company”), a real estate technology company developing and commercializing artificial intelligence (“AI”) technologies, announces today that the changes to the National Association of Realtors’ (“NAR”) rules became effective on August 17, 2024, and reAlpha expects that this change will positively affect the business landscape for real estate technology companies that provide alternative home buying methods. These changes to the NAR rules were a result of a $418 million settlement announced in March 2024 by the NAR. Previously, home sellers were typically responsible for paying both the seller’s and buyer’s real estate agents’ commissions, which usually amounted to six percent of the home price. In 2023, this amounted to around $100 billion in the U.S. market. Further, buyers will now need to sign a separate agreement if they choose to use a buyer’s agent, which will result in overall higher home purchase costs for a buyer if a seller decides not to cover these costs. Considered a material change to the U.S. residential real estate industry, reAlpha anticipates that this change may open up opportunities for real estate technology companies that are able to offer commission-free home buying services, such as Claire, reAlpha’s generative AI-powered, commission-free homebuying platform. “reAlpha welcomes these game-changing industry changes,” stated Mike Logozzo, President and Chief Operating Officer of reAlpha. “We believe that the general perception is that buy-side commissions are free because previously they have been paid by the seller. Now that buy-side agents aren't actually ‘free,’ we expect that many home buyers will turn to alternative real estate platforms and solutions offering commission-free, yet full-service experiences, such as what we have to offer through Claire.” Claire is currently available to assist homebuyers in 20 counties in Florida. reAlpha is actively seeking expansion into new counties and states. Its capabilities are complemented and supported by a team of licensed agents all powered by reAlpha Realty, LLC (“reAlpha Realty”), reAlpha’s fully licensed and insured real estate brokerage based in Miramar, Florida. These agents are readily available, if needed, on a no-obligation and commission-free basis, to ...