We all know Alex Doubet, his flat-fee brokerage Door, which is home-grown, founded and it turns out funded right here in Dallas/Park Cities. We know the story of how he founded the company right out of Harvard, because he thought his mom had paid too much to the agent when she listed and sold her own Park Cities home.
(Real estate brokers get paid thusly: the broker on each side of the deal takes, on average, three percent of the selling price of the home, which is split 50/50 broker/agent. So, if a house sells for $500,000, the seller and buyer’s broker(s) collectively take $30,000 off the table for themselves. But the 3% commission rate is almost always negotiated, especially in higher priced properties, as is the agents’ split. The Door way would be a $10,000 commission on this deal.)
Alex, like many Millennials, likes to think of himself as a disruptor. And he has done a terrific job of promoting himself to date, with billboard ads, even appearing on stage at Inman Real Estate Connect in NYC, which is a pay-to-play gig but hey, you get what you pay for. He listed a challenging neighbor’s home that did not sell, but they were very pleased with the service.
There is nothing new to his flat-fee brokerage model, that has been tried and, in some cases, proven successful at certain price ranges. It may even be successful at “uncertain” price ranges, too, as home prices contract.
But what is watchable about DOOR is that he is getting people to write checks to expand the company.