Galleon Bypasses MLS to Bring Buyers to Sellers, But Will That Render Realtors Irrelevant?
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In the last decade, we’ve seen an unprecedented influx of consumer technology. These tools have not only allowed us to become more efficient in everyday tasks, but they’ve also made certain aspects of life much more accessible. Whether purchasing airline tickets or buying stocks, we now have so much power in the palm of our hands. In fact, in many industries, from ticketing to travel, even insurance and investing, the agent is on its way out.
So, why is the agent still so essential to the real estate marketplace? Even in today’s DIY-driven society, it seems unheard of to buy or sell without brokerage assistance. Here, we’re going to go ahead and ask the inevitable. We’ll get some professional perspective and look at one company that’s doing for real estate what Robinhood did for the stock market. All of this is to answer the question, what is the Realtor’s role in our ever-evolving world?
The Role of Real Estate Agents
Before we look at radically changing one of the most important components of our economic health, it’s important to understand why it works the way it does.
“The for sale by owner model accounts for about 9 percent of transactions annually,” said Mohammed Jaber with Compass Real Estate. “However, the majority of these transactions are done between family. The danger of this model is underrepresentation and not understanding market comparables or true value.”
The real estate transaction differs from buying airline tickets or booking a hotel because it is so substantial. For most homeowners, it’s the single biggest investment in their lifetimes. This is why the real estate market hasn’t gone the way of Robinhood — yet.
“Most real estate agents understand each area of the transaction,” said Jaber. “We can pinpoint the right advice, hire the right people, and give buyers a well-rounded picture of what they’re getting into. Anyone can buy a house, but understanding all the due diligence that goes into it is crucial for understanding what you’re purchasing.”
Galleon Brings New Take on Transactions
On the flipside, Galleon is a listing platform that empowers buyers and sellers to transact independently through its Marketplace and Navigator tools. Having recently launched in Texas, this startup has already acquired 500 listings. Efficiently bridging the gap between buyers and sellers, Galleon allows owners to list properties in as little as two minutes.
“We noticed that there has been very little change in the way real estate transactions are handled, even since our great grandparents were buying homes,” said Galleon co-founder and CEO Amanda Orson. “The process is opaque, expensive, and very manual. So, we thought, how do we streamline it and make it more accessible for both the buyer and seller.”
Thus, Galleon was born — an off-market property marketplace that connects buyers directly with homes for sale by owner.
“We wanted to think about what the points of friction are in a real estate transaction,” said Orson. “Also, how could we reimagine them to pull them into the 21st Century.”
By drastically simplifying the listing process, Galleon was designed to bring more inventory into the market. Bringing more homes and more options also brings a win-win for both buyers and sellers, Galleon claims.
“There’s still a lot more that I think we can do to make this process so much simpler,” said Orson. “We’re trying to think about what would the universe look like if the consumer was really at the center of their own transaction.”
But does that mean an end to the role of the real estate agent? Jaber disagrees.
“You certainly wouldn’t go into the stock market and purchase an asset without understanding risk, longevity, or market history, so why would you buy a house without knowing as much as you could?” he asked. “This is where the agent is so essential.”
