REX Real Estate was a discount real estate brokerage that operated from 2015 to May 2022 in 19 states across the U.S. The company offered sellers and buyers a low-commission model that promised to save clients thousands in realtor fees.
Even though REX Real Estate shut its doors more than two years ago, it still remains involved in a lawsuit against Zillow, suing the platform for “restraint of trade.”[1]
Key takeaways | What is it? | How it worked | Fees and costs | Alternatives | Summary
Key takeaways
- REX Real Estate is no longer active on the market, ceasing operations in 2022.
- The company offered homeowners a low commission (2.5%) approach to selling their property.
- REX avoided the MLS to attract and market to unrepresented buyers, offering potential savings on buyer’s agent's commissions.
- The company is involved in an ongoing legal battle against Zillow, accusing the platform of violating antitrust laws and regulations.
Will REX make a comeback in 2025?
Despite shutting down its operations in 2022, REX Real Estate is still on industry experts’ radar. Following the loss of a trial in 2023, REX is appealing its antitrust case against Zillow in the Ninth Circuit Court of Appeals. The company argues that recent legal shifts, including the $418 million NAR settlement, bolster its claims of anti-competitiveness in real estate.
In an interview with Real Estate News, co-founder Lynley Sides said she believes growing awareness of agent commissions could pave the way for REX’s low-commission model to return. However, she says more industry changes are needed to curb steering and substantially lower brokerage fees.
What was REX Real Estate?
Founded in 2015, REX aimed to bypass traditional real estate practices of using brokers to sell houses. Instead, the company marketed properties directly to buyers outside the MLS, using digital channels such as Zillow and Facebook.
The sellers' primary source of savings was the potential elimination of the buyer’s agent commission because REX Real Estate targeted unrepresented buyers. However, as some reviews of the service indicate, this did not always prove to be the case.
For example, in 2021 (the last full year REX was operating), only 6% of buyers purchased a home directly from the previous owner.[2] REX clients reported situations where a broker would still represent an interested buyer. This could lead to the seller covering the buyer’s agent’s commission, even though avoiding this cost was the reason they used REX in the first place.
REX Real Estate's downfall
REX Real Estate seemingly had financial challenges since 2021, when it had two rounds of layoffs and shut down its New York and Chicago offices.
In early 2022, the company joined a few local MLSs, a major shift from its original MLS-free model. Many real estate professionals recognized this as a sign that the MLS remains vital to home-selling success and that REX’s efforts were not enough to disrupt the industry.
Shortly after this switch in its overall business model, REX Real Estate ceased operations and has been dormant since 2022.
How REX worked
Here’s a short overview of what a homeowner could have usually expected when working with REX Real Estate:
- A dedicated real estate agent who would assist them with organizing a photo shoot for a property, managing open houses and showings, and negotiating with interested buyers. REX emphasized that its agents didn’t work on commission, which supposedly increased the level of service.
- Digital marketing of a property through channels such as Facebook, Instagram, Google, Zillow, etc.
- No exposure on the MLS (until 2022).
The company promoted its tactics as disruptive and heavily reliant on tech and AI. However, this approach also came with risks for home sellers — properties that were not listed on the MLS and that targeted buyers without real estate agents could sit on the market for far longer than homes sold through the traditional process. The lack of MLS exposure could have deprived REX sellers of multiple offers and an overall better deal.
REX fees and costs
REX Real Estate charged a 2.5% commission, with a $9,000 minimum. This listing fee was supposedly the only cost for a seller, as the service claimed sellers would not have to pay the buyer’s part of the broker’s fee.
In reality, many sellers could have faced hidden costs. Most buyers were represented by a realtor, even if they came across the property for the first time outside of the MLS. If one of those buyers reached out to buy a house, a seller would either cover the buyer’s realtor commission or reject the offer.
Comparing REX to alternatives
REX Real Estate included some services comparable to listing through a more traditional real estate agent. For example, REX real estate agents would assist home sellers with pricing strategies, marketing and property staging, and negotiating with interested parties.
However, there are some significant differences between using REX’s services and working with realtors.
REX Real Estate vs. traditional realtors
REX may have offered sellers potential savings on a realtor’s commissions by targeting unrepresented (or underrepresented) buyers. This could amount to 3% of the sales price — an average commission for a traditional realtor representing one party. But in practice, almost nine out of ten buyers use brokers, which makes it challenging for sellers to avoid paying buyer’s agent fees, even if they market their home off the MLS.[3]
One of the biggest drawbacks of choosing REX vs. having a realtor’s representation was the limited visibility and its reliance on risky marketing strategies when listing a property for sale. These aspects could result in a lengthier sale process and a reduced number of offers, which, in turn, could impact the final sale price.
REX vs. discount brokers
| Name | Listing fee | Availability | Customer reviews |
|---|---|---|---|
| REX Real Estate | 2.5% (min. $9,000) | Unavailable (ceased operations) | — |
| Clever | 1.5% (min. $3,000) | Nationwide | 5/5 (3,000+ reviews) |
| Redfin | 1.5% (min. fee varies by market) | 100+ major US markets | 4.8/5 (156,000+ reviews) |
| Ideal Agent | 2% (min. $3,000) | Nationwide | 4.9/5 (7,000+ reviews) |
Low-commission brokers offer the full support and experience you can expect from a traditional broker but for a significantly lower fees. Typically, their services include assistance with showings, open houses, and negotiations.
A discount realtor can also help you develop a comprehensive marketing strategy, price your home to receive its maximum value, and guide you through the process. For example, using Clever, you can get matched with top local realtors who provide full service for 1.5% commission. (Get started today!)!
Final thoughts
REX Real Estate promised significant savings for sellers with its innovative approach to avoiding the MLS as a sales channel and focusing on unrepresented buyers. However, its business model proved to be unsustainable, and the company had to shut its doors in the first half of 2022.
REX is fighting for a potential comeback in 2025, buoyed by ongoing antitrust litigation and increased awareness around agent commissions, but its path forward remains uncertain.
In 2025, the best approach to selling a home is still a combination of working with a professional real estate agent using a variety of marketing tactics, and preparing your property well (and well in advance) to maximize your home’s value and appeal.For those seeking cost-effective solutions without sacrificing market access, established discount brokers like Clever Real Estate may offer a more balanced approach, combining lower fees with full MLS exposure and proven results. Simply take this short quiz, and get matched with top-rated agents offering a 1.5% listing fee.