A co-founder of a new real estate startup successfully sued the National Association of Realtors (NAR) over real estate commissions in the past.
The journey began in 2017 when Josh Sitzer and his wife faced frustration paying a 3% commission to a buyer’s agent when selling their home in Kansas City.
Sitzer expressed his discontent with the industry’s anti-competitive practices before the lawsuit, feeling coerced to pay for undesired services. This led to a class-action lawsuit against the NAR, resulting in a $418 million settlement and significant changes in how real estate is sold.
Taking advantage of the new landscape, Sitzer, along with Bryce Galen and Neal Batra, founded Landian, a startup offering flat-fee real estate agents on demand. Landian aims to help homebuyers navigate the rule changes brought about by the lawsuit.
The startup has now emerged from stealth mode, offering a beta version where users can book a home tour or prepare an offer with a licensed local agent without paying a commission.
Homebuyers can opt to pay à la carte for Landian’s services, with options ranging from $49 for a home tour to $1,799 for a comprehensive package that includes multiple tours and offer prep sessions. The payment is only due upon closing, providing protection from high upfront costs.
Galen believes that industry incumbents like Redfin and Zillow are not inclined to shift pricing models, making startups like Landian the leaders of change in the real estate market.
Batra shares this sentiment, predicting that most agents will transition towards the Landian flat-fee model following the NAR settlement.
Despite being based in New York and not having external capital raised yet, Landian is gaining traction with its unique approach to real estate transactions.
