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By M. Marin
NASDAQ:AIRE
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Positioning commission free real estate technology platform to benefit from expected dramatic shift within real estate sector
reAlpha Tech Corp. (NASDAQ:AIRE) is a real estate technology company that is developing an end-to-end commission-free homebuying platform. The reAlpha platform leverages artificial intelligence (AI) technologies in the property technology, or proptech, space and is designed to provide next-generation digital tools to people who seek to engage in real estate transactions. The company is optimistic that its platform can make it easier for prospective homebuyers, sellers and realtors to find or sell properties at appropriate prices and minimize the challenges of navigating through the process by using the homebuying guidance tools the reAlpha platform offers.
Moreover, a paradigm shift within real estate sector is expected following an industry lawsuit that resulted in a $418 million settlement (see below) and reAlpha believes it is positioned to benefit. Importantly, the reAlpha real estate technology platform is commission free. The company expects to generate revenue from services related to real estate transactions and sees AI as a potentially disruptive technology that can enable it to can gain market share by lowering the all-in cost to users while offering a growing portfolio of AI-enabled applications that make it easier, more convenient and more cost effective for users to make informed decisions regarding what will probably be their largest asset purchase.
Company expects to be a disruptor in the real estate space as commissions and data-sharing change following NAR settlement
The company therefore expects to be a disruptor in the residential real estate space as commissions and data-sharing change following NAR settlement. Specifically, a landmark lawsuit against the NAR (National Association of Realtors) contended that NAR and real estate brokerages that required agents to take NAR memberships had violated antitrust laws. In March 2024, the National Association of Realtors settled the class-action lawsuit, paying damages and agreeing to rule changes that went into effect on August 17, 2024. The lawsuit and settlement are expected to lead to dramatic changes in the residential real estate market (see illustrative example below).
reAlpha is optimistic that it can gain market share as it develops its platform and thereby improves market efficiencies and concurrently offers greater convenience to homebuyers and sellers, particularly in the aftermath of the NAR’s settlement.