{"id":2427,"date":"2021-08-12T12:34:32","date_gmt":"2021-08-12T12:34:32","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2021\/08\/12\/rocket-announces-discount-real-estate-brokerage\/"},"modified":"2025-03-13T02:38:54","modified_gmt":"2025-03-13T02:38:54","slug":"rocket-announces-discount-real-estate-brokerage","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2021\/08\/12\/rocket-announces-discount-real-estate-brokerage\/","title":{"rendered":"Rocket announces discount real estate brokerage"},"content":{"rendered":"\n<p><strong>Rocket Homes<\/strong> has plans to start iBuying \u2013 and discount real estate.<\/p>\n\n\n\n<p>The Detroit-based company \u2013 and no. 1 mortgage lender in the U.S. by volume \u2013 <a href=\"https:\/\/www.prnewswire.com\/news-releases\/rocket-homes-combines-every-aspect-of-home-buying-and-selling-into-one-simple-customizable-platform-301352134.html\" target=\"_blank\" rel=\"noreferrer noopener\">fired off a 1,490-word press release Tuesday<\/a> declaring its intention to \u201ccombine every aspect of home selling and buying into one simple, customizable platform.\u201d<\/p>\n\n\n\n<p>Such are the ambitions of an array of companies today including <strong>Zillow<\/strong> and real estate brokerage <strong>Compass<\/strong>. But Rocket\u2019s announcement provides a couple of specific ways it wants to cut into the real estate market and challenge traditional agents.<\/p>\n\n\n\n<p>Foremost is the ability for a home seller to work with an in-house Rocket real estate agent who is in \u201cdowntown Detroit\u201d and will receive a commission of 1.5% of the sales price.<\/p>\n\n\n\n<p>This remote agent would do many functions of a physically present salesperson, including \u201cadvising clients on the best list price, facilitate professional photos, list the house on the multiple listings service, negotiate offers and handle all paperwork.\u201d<\/p>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-background has-vivid-red-background-color has-vivid-red-color\"\/>\n\n\n\n<p class=\"has-text-align-center\"><a href=\"https:\/\/preprod.housingwire.com\/articles\/how-rocket-pro-tpo-continues-to-give-its-broker-partners-the-upper-hand\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>How Rocket Pro TPO continues to give its broker partners the upper hand<\/strong><\/a><\/p>\n\n\n\n<p class=\"has-text-align-center\">To remain competitive and create a better experience in this purchase environment, brokers need one thing above all: Speed. And there\u2019s one lending partner that has the solutions and resources to give LOs just that.&nbsp;<\/p>\n\n\n\n<h6 class=\"has-text-align-center wp-block-heading\" id=\"h-presented-by-rocket-pro-tpo\"><strong>Presented by:<\/strong><strong> Rocket Pro TPO<\/strong><\/h6>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-background has-vivid-red-background-color has-vivid-red-color\"\/>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>The remote agent option \u201cwill be open to the public starting in the fourth quarter of 2021,\u201d according to the release, with homeowners \u201cpaying a significantly lower commission of only 1.5% for the selling agent, as opposed to the traditional fee of 3%, which represents a savings of $4,500 on a $300,000 home.\u201d<\/p>\n\n\n\n<p>The average U.S. listing agent fee is closer to 2.5%, according to a RealTrends study. Still, the discount puts Rocket <a href=\"https:\/\/preprod.housingwire.com\/articles\/the-future-of-the-u-s-real-estate-commissions\/\" target=\"_blank\" rel=\"noreferrer noopener\">in the company of<\/a> <strong>Redfin<\/strong> and smaller outfits such as <strong>Rex<\/strong> and <strong>Clever<\/strong>, who are trying to buck the traditional fee split collected by agents.<\/p>\n\n\n\n<p>Unlike those companies, Rocket is additionally offering a traditional agent service. The company plans to continue their program of recommending agents through the \u201cRocket Homes Verified Partner Agent Network\u201d program.<\/p>\n\n\n\n<p>Rocket also announced Wednesday a \u201csoon to-be-released iBuyer program, facilitated through third-party partner companies.\u201d<\/p>\n\n\n\n<p>Rocket envisions people selling homes through their iBuying platform and then using the company\u2019s website, app, and partner agents to facilitate the purchase of their next house.<\/p>\n\n\n\n<p>Rocket\u2019s <a href=\"https:\/\/preprod.housingwire.com\/articles\/rocket-homes-could-be-real-estates-sleeping-giant\/\">further leap<\/a> into real estate comes after the company <a href=\"https:\/\/preprod.housingwire.com\/podcast\/a-closer-look-at-rocket-mortgages-q1-results\/\">reported<\/a> $1.3 billion in first quarter net income. That compares favorably to other companies promising a one-stop shop platform, <a href=\"https:\/\/preprod.realtrends.com\/blog\/zillow-earns-profit-no-thanks-to-ibuying\/\">such as Zillow<\/a>, which reported $9 million in second quarter net income, and Redfin, which posted a $28 million loss last quarter.<\/p>\n\n\n\n<p>One challenge to Rocket\u2019s ambitions may come from the federal government. As <a href=\"https:\/\/www.inman.com\/2021\/08\/10\/rocket-homes-hiring-in-house-agents-launching-ibuyer-program\/\" target=\"_blank\" rel=\"noreferrer noopener\">Inman News flagged<\/a>, the company spends a couple of pages of its recent annual report noting that the <strong>Consumer Finance Protection Bureau <\/strong>may change enforcement of the Real Estate Settlement Procedures Act, or RESPA.<\/p>\n\n\n\n<p>That 48-year-old law, in part, bans kickbacks and referral fees between real estate agents and mortgage lenders.<\/p>\n\n\n\n<p>Rocket is presently defending itself in a federal complaint filed by Dmitry Shipkin of <strong>HomeOpenly.com<\/strong> <a href=\"https:\/\/preprod.housingwire.com\/articles\/cfpb-investigating-rocket-homes-for-illegal-kickbacks\/\" target=\"_blank\" rel=\"noreferrer noopener\">who claimed<\/a> the company partakes in illicit kickbacks.<\/p>\n\n\n\n<p>\u201cWe are cooperating fully with the CFPB in this investigation and are confident in the compliance processes that Rocket Homes has in place,\u201d Rocket\u2019s <a href=\"https:\/\/s25.q4cdn.com\/509921419\/files\/doc_financials\/2020\/q4\/RKT-12.31.2020-10K-with-Exhibits.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">annual report<\/a> reads.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rocket Companies this week declared its intention to \u201ccombine every aspect of home selling and buying into one simple, customizable platform.\u201d<\/p>\n","protected":false},"author":16592,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[736],"class_list":["post-2427","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.4 (Yoast SEO v26.8) - 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