What Is REX Real Estate? | How It Works | REX Fees | Locations | REX vs. Traditional Realtors | Selling | Buying | Find REX Reviews | Top REX Alternatives
REX Real Estate is a discount real estate brokerage that claims it can save home sellers up to 50% on realtor commission. However, REX’s assurance of savings is misleading — and its approach is EXTREMELY risky. As the REX Real Estate reviews we’ll cover illustrate, most sellers will find better value with other discount services.
For example, our friends at Clever Real Estate offer a 1% listing fee (or a flat $3,000 fee for homes under $350,000), nationwide service, and an agent-matching process that connects you with the top realtors in your area. Learn more now.
Key Takeaways
- REX aims to bypass the MLS and connect home sellers with buyers who haven’t hired a realtor
- This is a risky approach: 89% of buyers work with an agent, so listing with REX shrinks your pool of potential buyers dramatically
- If it does work, you won’t have to cover buyer’s agent commission, which typically costs 2.5-3% of the sale price
- REX operates in a handful of states across the U.S.
P.S. Just looking for Rex Real Estate reviews? Find them here!
What Is REX Real Estate?
REX Real Estate’s business model attempts to help home sellers save on realtor commission by cutting the buyer’s agent out of the equation.
In a typical home sale, the seller offers 5-6% of the home’s sale price in total commission fees. The seller’s agent and buyer’s agent split these fees, each earning 2.5-3%.
If you sell with REX, you’ll still pay a 2.5% listing fee. But REX claims you WON’T have to pay buyer’s agent commission. Instead, it advertises your home directly to potential buyers on websites like Zillow, Facebook, and Instagram.
REX’s goal is to find buyers who aren’t using an agent, so it does NOT list homes on the multiple listing service (MLS). The MLS is a database where local brokerages advertise the properties they’re selling — and it’s the most common tool realtors use to find homes for their clients. Learn more about listing on the MLS.
The problem with REX’s approach is that eliminating buyer’s agent commission also eliminates most of your potential buyers. Nine out of ten buyers work with an agent. And the bottom line is that agents aren’t going to show your home to buyers if they won’t earn any commission on the purchase.
How Does REX Work?
Most discount real estate brokerages create savings by lowering their listing fees and offsetting those discounts with various cost-cutting measures.
REX’s strategy is different — and in our opinion, FAR riskier.
REX doesn’t charge “less” than the other guys. Its 2.5% listing fee is roughly what you’d expect to pay a traditional listing agent.
When you sell with REX, all of your potential savings rest on the gamble that REX can find one of rare buyers who’s either:
- Serious about buying a home — but hasn’t hired an agent
- Willing to pay their agent’s commission out of pocket
If that strategy fails, REX will likely recommend that you then offer a buyer’s agent commission. This will bring your total realtor fees to 5-5.5%, meaning you won’t save much — if anything — compared to a conventional home sale after all!
Looking for a less risky way to save on real estate commission? Our partners at Clever Real Estate can connect you with top-rated realtors in your area who offer a full-service experience — all for just $3,000 or 1%. Contact Clever today to learn more!
How much does REX cost?
REX advertises a flat 2.5% listing fee that “covers both sides of the transaction.” This implies that this is the ONLY fee sellers will pay. However, that’s only true if REX manages to find an unrepresented buyer. As many of REX’s customer reviews indicate, that’s not always the case.
| Service | Fee |
|---|---|
| Listing Fee | 2.5% (min. $9,000) |
| Buyer's Agent Commission* | 2.5-3% |
| Total | 5-5.5% |
Note that although REX charges a percentage-based commission, it also has a $9,000 minimum fee. This means that you’ll pay an effective listing fee of more than 2.5% if your home sells for less than around $360,000.
| Price Point | Listing Fee | Effective Rate | Savings* |
|---|---|---|---|
| $100,000 | $9,000 | 9% | -$6,000 |
| $250,000 | $9,000 | 3.6% | -$1,500 |
| $500,000 | $12,500 | 2.5% | $2,500 |
| $750,000 | $18,750 | 2.5% | $3,750 |
REX locations
Not all home buyers and sellers will benefit from REX’s model. REX Real Estate is currently only available in select states across the U.S.
Not in REX’s service area, or just want to compare your options? Check out our rankings of the best low commission real estate companies — and find a low cost realtor near you!
REX vs. Traditional Realtors
REX’s website claims its agents offer the “greatest service” at the “lowest cost.” But the truth is that listing with REX comes with HUGE disadvantages compared to listing with a traditional realtor.
REX’s approach may turn away up to 90% of buyers
The biggest tradeoff to listing with REX is that it reduces your supply of potential buyers by as much as 90%.
Remember: REX’s savings come from eliminating buyer’s agent commission. Since realtors aren’t going to work for free, that means either:
- Selling to one of the 10% of buyers who don’t use an agent
- Convincing a buyer to pay an extra 2.5-3% to cover their agent’s fee
Neither of those scenarios is likely. Serious buyers hire an agent to protect their interests. Besides, sellers typically cover buyer’s agent commission, so buyers don’t really have any incentive NOT to work with a realtor.
Additionally, buyers have LOTS of out-of-pocket closing and move-in costs. Most don’t have the cash to pay their agent too. And even if they do, they’ll likely expect you to accept a lower sale price since they’re footing the bill for their agent.
REX’s customer service model is risky
With REX, you’ll also work with a team of REX employees rather than a single dedicated agent.
While this team-based approach arguably increases efficiency, it also increases the risk of problems. The more people involved in your transaction, the greater the likelihood that you’ll encounter miscommunications and mistakes.
In a highly-regulated real estate transaction, even something as simple as missing a deadline to complete paperwork or submit a counteroffer could be enough to derail a potential sale.
Discount brokers like REX typically don’t provide as much hands-on service as traditional realtors. But REX isn’t your only option! Our friends at Clever negotiate with top-performing agents to deliver you five-star service at a discount price.
Selling With REX
In some respects, listing with REX should be a comparable experience to selling with a traditional brokerage. Your agent — or another REX team member — will assist you during each stage of the process.
This includes support for things like:
- Pricing
- Professional photography
- Open houses
- Reviewing offers
- Negotiating with buyers
- Closing coordination and other logistics
The biggest difference between selling with REX and a traditional realtor is that REX doesn’t list your home on the MLS. Instead, it uses targeted digital advertising to market your home to potential unagented buyers.
But, as REX’s customer reviews indicate, this approach has mixed results. This increases the risk that your home will struggle to attract buyers, so it could take a lot longer to sell than if it was listed on the MLS. And the longer your house sits on the market, the less likely you’ll be to find a buyer willing to pay the full asking price.
Buying With REX
REX also offers savings for home buyers — but only if you’re buying a home that’s NOT listed by REX. If your purchase qualifies, you could earn a commission rebate worth up to 1.5% of the sale price.
Lots of discount services offer home buyer rebates. These refunds always come with many terms and restrictions, so read the fine print to verify that you’ll qualify. And remember that REX’s eligibility restrictions aren’t the only factor. State regulations and even your mortgage lender’s policies could limit your ability to earn a commission refund. Learn more about home buyer rebates.
What if you want to purchase a home from a REX seller? First, you should be aware that you won’t be eligible for REX’s rebate. Second, with REX’s approach, the seller will expect you to either buy the house without an agent or pay your agent’s commission out of pocket.
In other words, buying directly from REX offers no built-in benefits — and a LOT of built-in risk.
REX Real Estate Reviews: Pros, Cons, and Areas of Concern
A REX Homes reviews show, this company offers some advantages compared to traditional real estate brokerages. But it’s important to weigh those benefits against the risks. Only then can you decide if REX is your best option, or if another discount service provides superior value.
Pro: Big savings…if REX’s strategy works
REX’s model is risky, but if it works, you’ll save big on realtor fees by avoiding the buyer’s agent commission altogether. On a $1 million home sale, you’d pay up to $30,000 less than if you’d offered a 3% commission to the buyer’s agent.
Mixed REX Real Estate reviews indicate that the company’s approach doesn’t always work. But savings are a consistent theme among sellers who have left positive feedback.
For example, this Facebook reviewer was initially skeptical about using REX to sell a house in Houston. His gamble ultimately paid off, saving him a “bundle on commissions.”
Pro: Solid commission rebate for buyers who qualify
If you buy a non-REX home with a REX agent, you may earn a commission rebate worth up to 1.5% of the purchase price. Those savings can help offset closing costs and other upfront expenses you’ll encounter when buying a home.
The buyer on Zillow saved $8,250 with REX, which they said made an otherwise “very good experience” even better.
Pro: REX agents provide in-person support
Unlike some of its competitors, REX offers in-person support throughout the home-selling process.
While technology allows realtors to handle many aspects of a real estate transaction remotely, there’s no substitute for having an agent physically present for crucial activities like:
- Visiting your home to help you decide on an appropriate list price
- Recommending how to stage your home to increase its marketability
- Hosting open houses for prospective buyers
The Google user who wrote this REX review received multiple offers on their home after an agent hosted an open house. They enjoyed the quick and easy sale.
Con: REX’s approach has a high failure rate
We can’t say it enough: The biggest disadvantage to selling with REX is that its primary strategy — finding buyers who aren’t using an agent — has a high failure rate.
A consistent theme among negative REX reviews is that sellers believed they’d save big on realtor fees — but REX failed to produce an unrepresented buyer.
Despite REX’s marketing, many sellers DO end up paying buyer’s agent commission in the long run. And since they’re paying REX a 2.5% listing fee, they don’t actually save much compared to selling with a conventional realtor.
Con: No MLS listing reduces your home’s visibility
Because REX is trying to find unrepresented buyers, it markets your home directly to potential house-hunters. Instead of listing your home on the MLS, REX places digital ads on social media and other websites.
However, most serious buyers are working with agents, and the MLS is the top tool buyer’s agents use to help their clients find homes!
As the Google REX review below illustrates, there’s a substantial risk that prospective buyers won’t even know your home is for sale.
Con: REX has a reputation problem
REX’s misleading marketing tactics and combative attitude toward old-school real estate brokerages have given it a poor reputation among traditional realtors, at least in some parts of the U.S.
Unsurprisingly, many agents refuse to show buyers REX listings that offer no buyer’s agent commission. However, REX’s poor reputation could negatively impact sellers even when they do offer to pay the buyer’s agent’s fee.
Here’s a review from a realtor whose client bought a REX home from a seller who ultimately paid buyer’s agent commission. The reviewer claimed they had a horrible time working with REX and said they would actively attempt to dissuade future buyers from looking at REX properties.
REX Alternatives to Consider
Although it claims to offer the “lowest fees” in the real estate industry, many REX Real Estate competitors offer much better value with a LOT less risk.
| Company | Average Rating | Locations | Listing Fee | Average Savings* |
|---|---|---|---|---|
| REX | 4.7 (765 reviews) | Select states | 2.5% (min. $9,000) | -$325 |
| Clever | 4.9 (974 reviews) | Nationwide | $3,000 or 1% | $7,375 |
| Redfin | 3.2 (287 reviews) | Nationwide (select markets)
| 1.5% (min. fees vary) | $5,550 |
| Trelora | 4.7 (943 reviews) | AZ, CO, GA, MO, NC, SC, WA
| $3,000-4,000 | $8,500 |
1. Redfin
With nationwide brand recognition and a proven savings model, Redfin is a solid option for most home sellers. Its 1.5% listing fee isn’t the best rate available, but it’s a lot cheaper than what REX charges. Sellers may be eligible for additional discounts if they buy a house with Redfin too.
One potential drawback is that Redfin Agents handle 3x as many clients as traditional realtors. As a result, sellers may not get as much hands-on, personalized support as with a conventional brokerage.
Learn more about selling with Redfin.
2. Trelora
Trelora is a discount brokerage with locations in five states: AZ, CO, NC, SC, and WA. Instead of percentage-based commission, Trelora charges home sellers a flat listing fee that starts at $3,000. Since sellers pay the same fee regardless of what their home is worth, Trelora offers the most savings on high-end properties.
However, like REX, Trelora has a poor reputation among buyer’s agents. Its own CEO even admitted that as many as 40% of Denver-area realtors refuse to show Trelora homes.
Learn more about selling with Trelora.
3. Clever Real Estate
Finally, Clever Real Estate is one of the best alternatives to REX if you want to save, but don’t want to sacrifice service.
Clever pre-negotiates discounted commission rates with traditional realtors throughout the U.S. Unlike REX, Clever’s agent-matching service connects you with top-rated realtors in your area and they handle all selling responsibilities — including your MLS listing. With Clever, you can also interview as many agents as you like until you find the one that’s your best fit.
If you sell with one of Clever’s partner agents, you’ll pay a listing fee of just $3,000 for homes under $350,000 or 1%. Eligible buyers may also receive commission rebates.
When it comes to saving money on real estate fees, you have a lot of great options to choose from. If you’re still not sure where to start, we can’t recommend our friends at Clever enough. More savings than REX, less risk. Reach out today to meet top agents in your area.
Related Links
If you’re looking to save on realtor commission, REX may not be your best option. We recommend reading the following resources to learn more about alternatives that offer better savings with fewer risks.
What Companies Offer the Lowest Real Estate Commission Fees?: Which companies actually offer the lowest commission fees? And which ones are just blowing smoke? Learn more.
Clever Real Estate: Must-See Reviews: Clever connects home buyers and sellers to top-rated real estate agents in their area. Learn more about their agent-matching service now.
Redfin: Reviews, Pros, Cons, and Everything Else: Redfin is known for their low commission, high-tech website, and agent teams. How have other customers rated their service?
REX Real Estate FAQs
Is REX Real Estate legit?
Yes, REX Real Estate is a legitimate discount real estate brokerage with licensed agents throughout its service area. That said, the way REX creates savings is extremely risky — and could cost you money in the long run. Other low commission companies offer bigger discounts with fewer risks.
How does REX work?
REX attempts to save you money on commission by eliminating the buyer's agent fee. It markets your home directly to buyers using digital ads, instead of posting it on the multiple listing service (MLS). If REX finds you a buyer who isn't using a realtor, you won't be responsible for buyer's agent commission. But, since nearly 90% of buyers work with a realtor, this approach is a HUGE gamble. Find better ways to save on real estate commission.
How much does REX cost?
REX charges a 2.5% listing commission, which is subject to a $9,000 minimum fee. Considering that most traditional realtors charge 2.5-3%, REX's fee isn't much of a discount. Some of REX's top competitors offer listing fees as low as 1%. Find the best 1% commission realtors.
Is REX really 2.5%?
Yes and no — REX charges a 2.5% listing fee, but this doesn't include buyer's agent commission, which typically costs another 2.5-3% of the sale price. REX claims its approach will help you avoid covering the buyer's agent fee, but as we explain in our review, this is FAR from a guarantee. Additionally, REX charges a $9,000 minimum fee. If your house sells for around $350,000 or less, you'll pay more than 2.5%. See how REX compares to other top low-fee brokers.
Who are REX's top competitors?
REX's top competitors include discount real estate services like Clever, Redfin, and Houwzer. Want to compare your options? See our complete rankings of the 10 best low commission companies.
Leave a Reply