Iggys House Prescribes Reinvention for the Broken Real Estate and Mortgage Industries
Florida Becomes Next State in Expansion of BuySide Mortgage Corp.
CHICAGO, Sept. 24 /PRNewswire/ — Online real estate pioneer Iggys House continues to build momentum in its efforts to change the real estate and mortgage industries for the better, today announcing the expansion of its BuySide Mortgage business into the state of Florida.
The BuySide Mortgage strategy is not only to provide some of the lowest rates in the industry, but also to provide an unparalleled level of unbiased service. BuySide's loan officers are salaried and do not receive commissions. In contrast, they have the opportunity to receive a substantial bonus determined solely by customer satisfaction. The industry norm is for loan officers to work for commissions.
BuySide Mortgage launched its services throughout California earlier this year.
“Our goal is to question every assumption that's ever been made about the real estate or mortgage industries and see if there's a better way,” said Joseph J. Fox, CEO of Iggys House, Inc. “This is an industry that desperately needs to be transformed. Fixing the broken real estate and mortgage industries requires revolution, not evolution.”
The growth of IggysHouse.com, the company's real estate portal site, demonstrates the strong market demand for industry changes. Since the company launched its free listing service in March 2007, sellers have published properties on the site with a total list price of nearly $3.0 billion, and used the company's free MLS listing service for properties with a total list price of over $1.25 billion.
Since the Company launched its industry leading 75% home buyers rebate program in April 2006, homebuyers have received millions of dollars that would have otherwise gone to the traditional agent. On average buyers have received over $11,000 each.
“Word is spreading rapidly that people can use Iggys House for comprehensive industry changing services when selling, buying or financing a home,” concluded Fox.
Real Estate & Mortgage Industry Deficiencies Addressed By Iggys House
Iggys House has targeted four key problems in the real estate industry.
Onerous Real Estate Commissions
Traditional real estate agents are overcompensated, often charging a total commission of about 6% of the home sale price. As home prices have soared in recent years, the commissions have soared with them, creating a windfall for traditional agents.
Iggys House is lowering commission fees in two ways. First, its buy-side service shares with the buyer 75% of the buyer broker commission received from the seller. On average, this service pays buyers more than $11,000 per transaction. Second, its sell-side service enables sellers to list their home on the MLS for free.
Control of MLS Listings that Impedes FSBO Sales
Multiple listing services around the country are an important channel for marketing a home. Only real estate brokers can list a home on an MLS, making them gate-keepers. Brokers use this as leverage to impose their high fees.
Iggys House is addressing the MLS access problem by giving free MLS listings to sellers.
Conflicts of Interest in the Mortgage Industry
Mortgage industry loan officers are typically paid on commission. So they have a financial incentive to originate as many loans as possible, regardless of whether they are appropriate for the borrower's finances.
Iggys House is addressing conflict-of-interest problems in the mortgage industry by eliminating the industry practice of giving loan officers higher commissions for more expensive loans. BuySide Mortgage loan officers are salaried and paid a substantial bonus tied solely to customer satisfaction. So they have no incentive to issue inappropriate loans.
Overpriced Home Mortgages
The current crisis in the mortgage industry has been exacerbated by the issuance of unnecessarily expensive loans to homebuyers.
BuySide Mortgage is addressing this problem by offering extremely competitive rates on a variety of loan programs. The company believes it can offer more competitive loans due to the efficiency of its Internet based model and the fact that it does not pay commissions to its loan officers.
About Iggys House, Inc.
Iggys House, Inc. is the parent company of BuySide Realty, Inc., BuySide Mortgage Corp., IggysHouse.com, Inc. and Iggys House Realty, Inc.
IggysHouse.com is the leading online destination for self-directed home sellers and agents across the country. It offers a rich, dynamic marketing platform for home sellers, enabling them to post unlimited content, photos and videos about their homes.
Iggys House Realty, Inc. provides sellers with free MLS listings and free placement on Realtor.com, the top two channels buyers and buyers' agents use to find homes. It provides this service in 20 states representing 64% of the U.S. home market. For additional information, visit http://www.IggysHouse.com.
BuySide Realty is the country's largest Online Buyer's Agent, a licensed real estate brokerage that represents home buyers. Customers who purchase a home through BuySide Realty receive 75 percent of BuySide's commission. Buyers have received an average rebate of over $11,000. In addition, BuySide's licensed, non-commissioned agents assist customers from offer to closing.
BuySide Realty is currently available to home buyers throughout all of California, Florida, Illinois, Georgia, Virginia and Washington. For more information, visit http://www.BuySideRealty.com, http://www.BuySideMortgage.com or http://www.IggysHouse.com or call 1-877-4-BUYSIDE.
BuySide Mortgage is currently available in all of California and Florida.
Not affiliated with Realtor.com(R). Not a multiple listing service.
SOURCE Iggys House Realty, Inc.
© 2007 PR Newswire. All Rights Reserved.
