The Real Exchange Corporation is a reasonably priced, unique, proven and highly competitive proprietary-systems approach to residential real estate brokerage. It is a full-service, "supermarket" approach to real estate transactions, achieving significant nationwide market penetration for services, including the sale of all basic insurance (casualty, automobile, health, title, etc.) and mortgage products at a fraction of the usual acquisition cost.
The basic opportunity of The Real Exchange arises from the fact that residential real estate brokerage is a business of considerable size — about $45 billion derived in commissions annually from almost 5.5 million "resale" transactions nationwide — which is riddled with antiquated and inefficient practices. These inefficiencies translate into artificially high commission rates on home sales (6% to 7.5% of the selling price), which are necessary to support the labor-intensive efforts of the hundreds of thousands of conventional brokers and agents who ply this market. Numerous independent sources, including the Federal Trade Commission, strongly suggest that this industry is long overdue for meaningful innovation, efficiencies, competition and savings for the consumer.
The Real Exchange, in contrast, uses information-processing and marketing economies to deliver a full-service residential brokerage operation at a reduced commission rate (initially) of only 2.9% — a most attractive alternative to the current methods of buying or selling a home. The large-scale economies of this approach provide for maximum satisfaction of buyer and seller objectives on a faster and less costly basis than is currently available anywhere.
This dramatic combination of service and pricing improvements permits the Company to target significant market penetration and profitability. Building on experience gained in a previous, successful market test in San Diego, California, it applies advanced database technology to match buyers and sellers attracted through high-profile broadcast media advertising to complete and submit readily accessible buyer/seller information questionnaires (including via the Internet).
The Company's market-tested approach to the transactions of residential real estate, which will not only change the fundamental economics of this huge and inept industry, but in the process will potentially generate hundreds of thousands of leads for a variety of wholesale priced insurance, mortgage and financial services products. As in RemodelExpress.com, part or all of the required funding could come from a large mortgage lender or from revenues generated by RemodelExpress.com.
Additional capital requirements - $18,000,000.
Projected revenues - $530,000,000.
For additional information, Contact Leslie Militzer at lchm@cox.net
Read George Militzer's CV