S8E79 Interview with Georges Benoliel, Founder of NestApple
The need for innovation from real estate brokerages is apparent. Consumer shopping behavior continues to evolve with technology and consumers expect all industries to keep up. With big changes in how a service is delivered, it's no wonder then why price and value are questioned. If one task used to take hours, but now only takes minutes, should it cost the same? This is something Georges and Nicole Fishman Benoliel question with regards to the cost of hiring a real estate agent. Their brokerage, Nest Apple, aims to disrupt the New York and Connecticut markets by redistributing commissions from agents to consumers in hopes to re-align the value to cost perception consumers have.
NestApple founders, Georges and Nicole Fishman Benoliel are long-time real estate investors in New York City. After going through the lengthy and costly process several times, they grew increasingly uneasy about the outdated system. While most segments of the economy have evolved due to innovation, real estate still operates in an antiquated manner which dates back from the 1980s. While websites like Streeteasy or Trulia make it easier than ever to search for homes and find comps, nothing has changed in the way people buy and sell real estate.
In an increasingly transparent market, there is less value in what traditional brokers offer. “The market has never been so transparent”, says Georges Benoliel, “all the information is available online, two clicks are all it takes to know what your neighbor paid for his apartment or whether he took a mortgage”. “The role of realtors needs to evolve and adapt” adds Nicole. While searching for ways to bypass the system, Georges and Nicole stumbled upon the concept of commission rebates which are legal in 40 States according to the Department of Justice and have in fact been publicly encouraged by New York’s Attorney General.
Real estate fees are too high
Real estate fees in the U.S. and New York especially are considerably higher than in Europe and represent 5 to 6% of the sale price. This percentage is then split evenly between the seller’s agent and the buyer’s agent (2.5% to 3% for each), if not, seller’s agent receives the entire commission. NestApple is listening to the market. While some brokers sometimes give small discounts, a vast majority of them will not decrease their commission structure. NestApple pays back 2% to the buyer at closing which averages $22,000.
Email Georges at: email@example.com
Connect with Georges on LinkedIn: https://www.linkedin.com/in/georges-benoliel-01b324/
Follow NestApple on Twitter: https://twitter.com/nestappleRE
Check out NestApple online: http://www.nestapple.com