Homie, a real estate technology company that has been changing the way homes are bought and sold since 2015, released an academic study conducted by Todd Mitton, PhD, and Barrett Slade, PhD, professors of finance at Brigham Young University in Provo, Utah. The study compares days on market and sales prices of homes listed with Homie versus traditional real estate brokers. The findings reveal a significant advantage for Homie, with lower days on market and higher sales prices for similar homes.
The professors analyzed more than 100,000 real estate transactions across 206 Utah cities from January 2017 – September 2019. Specific findings and conclusions included:
- Homes listed with Homie sold for 1.2% higher prices than comparable homes listed with traditional brokers.
- Homes listed with Homie sold an estimated 8 days faster than comparable homes listed with traditional brokers.
- Other discount brokers also sell homes for higher prices than traditional brokers but do not sell homes as quickly as Homie.
Professor Mitton said, “With all the capital being invested in real estate technology across the U.S., this study provides some empirical evidence that, in Utah at least, a technology-focused broker has, on average, provided measurable benefits for home sellers.”
“Typically when you choose a lower-cost product you sacrifice performance or service. That’s simply not the case here,” said Johnny Hanna, CEO of Homie. “Based on this third-party research, not only are Homie agents selling homes faster and for more money, but we are also saving sellers tens of millions of dollars in commissions annually. Savings is the mission and technology is the way.”
The Homie app and website equip first-time home buyers and sellers with detailed education, videos and a dedicated real estate agent to make the process simple and transparent. The use of technology dramatically reduces the cost, with average savings for home sellers of $10,000. It’s full-service real estate at a fraction of the cost.
For more detail or to download the full study visit homie.com/proof.
We study the pricing and liquidity of residential real estate transactions following the introduction of a technology-focused discount broker into a large U.S. real estate market. Controlling for observable property and transaction characteristics, we find that properties listed with the technology-focused discount broker sold for a statistically significant premium of 1% relative to traditional brokers, but that this premium was roughly the same for other discount brokers in the market. Concerning liquidity, we find that properties listed with the tech-focused broker sold a statistically significant eight days faster relative to traditional brokers, but we do not find the same reduction in time on market for other discount brokers. We discuss potential explanations for and limitations of our findings.
Homie is a tech-first real estate company that has been changing the way homes are bought and sold since 2015. We are the #1 listing broker in the state of Utah and launched in Arizona in 2018, with future plans to expand nationwide. Our full-stack software platform streamlines the process from contract to close, eliminating high fees and commissions along the way. With real estate, home loans, title, and insurance services, Homie has disrupted an outdated industry and made buying and selling simple, enjoyable, and affordable. Finally, the way real estate should be.