ShowPal is a brand new technology that just launched in April and has ambitious plans to disrupt the home real estate industry and replace realtors entirely, making for sale by owner, easy. But just how do they replace what has traditionally been a very hands on experience? I asked the CEO, Chad Torstenson.
Torstenson explained the model started during his own home search process when he realized he wasn't getting what he wanted out of the professional home real estate process. He began researching a better solution.
He has fundamental belief homeowners can be just as successful in selling their home if they do it for sale by owner, with the additional benefit being they will walk away with more money in their pocket. According to Realtor.com, commissions for home sales are typically around 6%, which doesn't sound like much until you consider the figures.
On the sale of a $300k home for example, a 6% commission can cost an owner about $18,000. If a seller successfully uses ShowPal however, the total fee would be under $2000 the company claims. Torstenson says this additional cost typically requires 3 years of mortgage payments just to break even.
Torstenson says ShowPal is the AirBnB of home real estate. It connects home sellers and home buyers without the traditional expense of real estate brokerages or agents. ShowPal intends to disrupt the incumbent industry by connecting sellers and buyers not just through the internet but with a solution that goes beyond software. Obviously, home tours, real estate signs, and key boxes need to be considered and are typically a pain when a home is for sale by owner.
ShowPal's infrastructure includes strategic partners to deliver the required real estate disclosure documents, a home value report or appraisal, home real estate photography, and even a yard sign and door lock-box. An added security service gives buyers access to your home for showings.
If an offer does come in, it is submitted and negotiated online. This is handed off to a real estate attorney, which Torstenson says have far more experience and training to handle pitfalls of a real estate transaction. The company says a house for sale by owner should be more easy than a traditional realtor. At least, that's the goal.
Further iterations of their network include potential advertising opportunities to companies that want to reach their client base. To learn more about ShowPal visit their website.
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