There’s a new startup on the real estate scene. And its most distinguishing feature, so far, is its cofounder, Josh Sitzer—the same Sitzer in the Sitzer/Burnett lawsuit—the big one that ended with a jaw-dropping verdict for the plaintiffs last Halloween. TechCrunch was the first to break the news.
Sitzer’s new startup has a name: Landian—a combination of “Land” and “Guardian.”
According to Sitzer, the purpose of Landian is to give consumers the option of paying flat fees for the services of a licensed real estate agent.
As Sitzer told TechCrunch,
“Due to the anti-competitive structure of the industry before the lawsuit, I, as the seller, was effectively coerced into paying 3% of my home’s selling price to a buyer’s agent in order to achieve a successful sale. While hiring agents is a choice for many, I don’t believe anyone should be bullied into paying for undesired services due to unfair industry practices.”
Following his victory in the courtroom, Sitzer has teamed up with Bryce Galen and Neal Batra to co-found Landian and offer à la carte real estate services.
Flat-fee agent services
Buyers who decide to give Landian a try have the option of paying a flat fee for each service, including:
- $49 for each home tour
- $199 for an offer prep session
If they want more comprehensive assistance with the homebuying process, they can opt for a $1,799 for a service package that includes up to five home tours and up to two offer prep sessions (which add up to $643 based on the à la carte menu, leaving $1,156 for the other services included).
Additional services not included in the $1,799 package are available on an à la carte basis.
Part of Landian’s guarantee is that buyers only have to pay for these services upon closing. So, if they don’t actually buy a home through Landian and commit to their agreement, they owe nothing.
As Bryce Galen, Landian co-founder, puts it,
“With Landian, homebuyers are protected from the new reality of paying exorbitant commissions out of pocket that eat into their closing costs.”
Galen expects a new wave of startups like Landian will lead the change in the real estate industry. And he doesn’t expect “old guard” companies like Zillow and Redfin to join the effort.
“Because the Zillows and Redfins and this sort of old guard real estate tech companies have thrived and grown in a world where a buyer agent gets 3%, they’re not leading the change here.”
The third co-founder, Neal Batra agrees:
“My bet is that, following the NAR settlement, most agents will convert from relying solely on the traditional model based on speculation and higher fees to incorporating the Landian flat-fee model.”
Early reactions
Ricky Carruth posted a green screen video on his Instagram talking about Sitzer’s new startup and what it aims to do.
Carruth states,
“Little do they know that this has been tried over and over and over again—and failed over and over and over again—and those companies were charging a lot more than what they’re charging. This just goes to show you how far out in left field the plaintiffs were in terms of what consumers actually need.”
Landian, a New York-based startup, has yet to raise external capital and is currently operating solely on funds from friends and family. Sitzer, et al, are in the process of raising a seed round.
Stay tuned for more.
