Meet Rex. He’s the robot that is slowly replacing human real estate agents in markets like California and New York.
“If you’re not a very good agent, you’re gonna have problems competing against the robot but if you’re good, you will still have a job,” Jack Ryan, CEO of Rex Real Estate Exchange tells FOX Business’ Maria Bartiromo.
The device, nicknamed Rex, was created in 2015 by a team of entrepreneurs in tech, finance, and real estate. The Woodland Hills based startup says the concept of using a machine instead of a person to find buyers is already paying off in big markets.
“So we’re listing and closing a home a day in California. And, we just launched in New York last week and we already have three homes listed in New York in a week. So, it’s going really well,” Ryan said.
One of the reasons Rex is thrilling says Ryan, is because the company is only charging a 2% fee while traditional agents charge 6%.
Additionally, Rex can answer any homeowner questions a potential buyer might have.
“Basically, there are 75 questions you have about a home, we found that out. And there is a hundred ways to ask those 75 questions and we have trained our robots to answer all those questions so no one has to follow you around and say this home is 2500 square feet,” Ryan added.
The robots are trained to use artificial intelligence to try to target potential buyers throughout social media using Facebook, Instagram, and Snapchat ads. The concept has even caught the eye of big investors like the founders of Best Buy (NYSE:BBY) and Crate & Barrel. Even some politicians, Ryan says. So far, the company has raised over $16 million to date.