Looking to sell your home without incurring a substantial commission to a real estate agent? Engaging in a “for sale by owner” (FSBO) transaction can be intricate and time-intensive, prompting the emergence of various companies aiming to streamline the process. Among these is Houzeo, an online platform designed to list your property on your local Multiple Listing Service (MLS) – a database utilized by real estate agents to showcase properties – for a fixed fee, all without the involvement of an agent. Here’s a comprehensive review of Houzeo and its operational dynamics.
What is Houzeo?
Based in New York City and serving customers across the nation, Houzeo stands as a prominent platform for selling homes, offering homeowners the opportunity to list their properties for sale independently, without the involvement of a listing agent.
Similar to other for-sale-by-owner websites, Houzeo provides various pricing plans tailored to different service levels. Its highest-tier plan, priced at $449, presents a cost-effective alternative to the typical 2.5 to 3 percent commission charged by listing agents, although additional fees may apply.
In addition to facilitating MLS listing for a flat fee, Houzeo equips sellers with access to its exclusive suite of online tools, including:
- IntelliList Listing Management System: This tool aids in listing creation and enables sellers to make adjustments to their listings as needed.
- Houzeo Offers: Designed to evaluate buyer offers, this feature allows sellers to issue counter-offers or request “highest and best” offers.
- Houzeo Showings: This tool streamlines the management of showing requests from prospective buyers and their agents.
How does Houzeo work?
Houzeo presents four pricing tiers for its services:
- Bronze: Starting at $399, this basic package offers a six-month MLS listing with 24 listing images. Your listing appears on Houzeo’s website and various syndicated platforms like Zillow and Realtor.com. Unlimited listing changes are allowed.
- Silver: Priced from $399, this package builds on the Bronze offering, including unspecified “maximum” photos, access to the Houzeo mobile app, and seller disclosures.
- Gold: Beginning at $429, this tier encompasses all features of the Silver plan along with additional benefits such as access to Houzeo Offers, a personal concierge, and support from a licensed broker for contract review and pricing guidance.
- Platinum: At $449 and above, this premium package extends Gold services with virtual support from a licensed broker. The MLS listing duration increases to 12 months, and additional services are available upon request.
Important considerations regarding Houzeo’s pricing:
- While a free listing option is available on Houzeo’s website, it only grants visibility on Houzeo.com. To access the MLS and its syndicated platforms, you must purchase a listing package.
- Package prices can vary by state, requiring you to check the pricing specific to your location, which may differ from the initial site display.
- You remain responsible for covering all closing costs and your buyer’s agent’s commission.
- Pay close attention to the fine print as additional fees beyond the package prices apply. For instance, Silver and Gold plans entail a 0.5 percent charge at closing, potentially increasing costs significantly. The Platinum plan incurs a 1 percent fee at closing. A $49 charge for a yard sign is also applicable, with reimbursement possible upon providing a specified selfie.
- The statement “On Silver, Gold and Platinum plans, a minimum commission of $999 is applicable” lacks clarity regarding whether it is in addition to the percentage due at closing.
It’s crucial to thoroughly review all terms and conditions before proceeding with Houzeo’s services.
Where does Houzeo operate?
Houzeo operates across all 50 states and Washington, D.C. According to its website, coverage automation is robust in 45 states, while it is more restricted in Iowa, North Dakota, South Dakota, Wyoming, and West Virginia.
Is Houzeo worth it?
The idea of bypassing real estate agents and saving on commission fees can be appealing for many home sellers. Houzeo claims potential savings ranging from $6,125 to $14,700, although it’s unclear how these figures were calculated, given the variability of traditional commission structures based on sale prices. The website also states an average savings of $15,000.
However, while Houzeo’s pricing structure offers potential savings, it’s essential to note that there are still fees involved. For sellers aiming to maximize their earnings from the sale, especially if they prefer not to pay a percentage to others, the higher-tier service plans may not be the most cost-effective option. The Bronze plan, which solely charges a flat fee without a percentage at closing, might be more suitable for those seeking a basic MLS listing without additional costs.
Houzeo alternatives
Houzeo isn’t your only option for selling your home. Consider these alternatives:
- Explore other online flat-fee MLS platforms like Homecoin, ISoldMyHouse.com, ListWithFreedom.com, or ForSaleByOwner.com (owned by Rocket).
- Look into platforms that connect you with real estate agents, such as Clever, UpNest, or Redfin.
- Explore the option of selling directly to an iBuyer or cash-homebuying company operating in your area.
In Conclusion
To begin working with Houzeo, simply input your address online or arrange a consultation call with a representative through the website. Before proceeding, ensure you fully comprehend all the particulars and carefully review all terms, conditions, and contracts.
If you determine that Houzeo isn’t suitable for your needs, consider reaching out to another online service or a local real estate agent. Many agents are open to negotiating their commission rates, so don’t hesitate to inquire.