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Real estate marketplace expanding into Phoenix

Posted: 4:30 AM, Feb 22, 2018
Updated: 2018-02-28 13:16:47Z

Technology is opening up a whole new world of real estate.  

Buying and selling homes online is becoming more and more prevalent across the country and in the Valley.  

Along Interstate 10 in Phoenix, you may have noticed billboards advertising for a new business called "Homie." The company was previously operating in Utah and has now set their sights on the Arizona real estate market. 

"The internet has changed consumer behavior," said Homie CEO Johnny Hanna. "But, the role of a traditional agent just hasn't changed and that's where we're stepping in and realizing that this is...the next way to buy and sell a home."  

You may have already heard of sites like OfferPad or OpenDoor. Both of them work in a very similar way. 

If you are selling a home, you request an offer by filling out their online forms with information on your home. They use that information and market data to give you an offer. They take at least 6-percent of your home sale.

The difference with Homie is that they take less than 1 percent in fees. 

"Six-percent on a $300,000 home is $18,000," Hanna explained. "And in a market like Phoenix...you're paying somebody $18,000 to do a couple of weeks worth of work." 

ABC15 asked the Arizona Association of Realtors to check out these online options. 

President Lori Doerfler said that all of these websites are great because they are extra tools for consumers in a confusing market. However, she still suggests having someone with an education and background in real estate by your side. 

"Buying a home is probably the largest financial purchase that anyone will ever make," Doerfler said. "And it is something that you really want to make sure that you are going step-by-step and having somebody that can walk you through that process."

Hanna said that Homie does pair you up with a realtor to help answer your questions. 

Overall, Doerfler said that every path has pros and cons for buyers and sellers. So, it may take some research to figure out what option is best for you.