August 17, 2024 | By Ankit Dhawan
RealStar AI is building the world’s first AI Real Estate Agent, to help people buy and sell homes without paying commissions.
Every year, home buyers and sellers collectively spend $100 billion on real estate commissions. RealStar AI is here to change that. By harnessing the power of AI, we’re enabling anyone to confidently buy or sell their home without relying on a traditional agent and without paying exorbitant commissions.
The current real estate commission structure is outdated and broken. Despite the significant advancements in technology that have reduced the workload for real estate agents, commission fees have remained stagnant at 5-6% per transaction—the third highest in the world—since the 1940s. This structure does not account for the growing disparity between the value agents provide and the commissions they charge, especially in an era where home prices are soaring, with starter homes in 200 cities costing upwards of $1 million. The high fees, lack of transparency, and overall complexity of the process have left many consumers frustrated and financially strained.
In a recent landmark decision, the Department of Justice (DOJ) ruled that sellers are no longer required to set and publish the buyer agent’s commission, giving buyers the power to negotiate directly with their agents. While this ruling introduces more flexibility, it also places a new financial burden on buyers, who may now have to pay agent fees out-of-pocket—a cost that cannot be financed through a mortgage. For example, a buyer could face an additional $30,000 expense on a $1 million home to pay a 3% buyer agent commission.
RealStar AI is developing tools designed to guide users through every step of the home buying and selling process—offering the expertise of a top local agent without the hefty commission fees. Launching with a transparent flat fee model, they plan to offer flexible service options, from self-service to full concierge support, catering to every budget. At the core of our technology is a state-of-the-art, domain-specific real estate multimodal and large language model, paired with agentic workflows to automate back-office processes and streamline transactions.
With RealStar AI, buyers and sellers can:
1. Ask Questions 24x7: Get answers to any process, real estate-related, or local area/property-specific questions.
2. Gain Advanced Insights: Access the most detailed property and neighborhood insights, including comprehensive comparative market analysis on any home.
3. Virtual Staging and Image Editing: Edit images, perform virtual staging, and prepare your home to be showroom-ready.
4. Search and Schedule: Search for homes, schedule showings, or arrange open houses in your local area.
5. List Homes with Ease: List your home with just a few clicks.
6. Manage Offers: Create, review, and understand offers quickly and easily.
7. Document Analysis: Analyze documents, inspection reports, disclosures, and more with AI assistance.
Founded by Ankit, Rob and Omar, the RealStar AI team combines deep expertise in AI, real estate, and startups. Ankit, a Cornell alum, and a former AWS Gen AI product lead, recently sold his last startup. Omar, also a Cornell alum (classmates with Ankit), was previously an SVP at a leading marketing agency, helping launch consumer brands for Amazon, Starbucks, Mazda, etc. Rob is a serial entrepreneur with one exit, has also built and leads a thriving brokerage with over $3.5 billion in transaction volume, helping more than 3,500 clients achieve their real estate goals. Together, they bring a powerful blend of experience to RealStar AI.
RealStar AI is not just about saving money—it’s about revolutionizing the real estate experience. By leveraging advanced AI technology, we are making it easier, more transparent, and more affordable for people to buy and sell homes. Whether you’re looking to save on commissions, gain deeper insights into the market, or simply streamline the entire process, RealStar AI is here to help.
As we continue to innovate and expand, our vision is clear: to make commission-free real estate transactions the new standard. We invite you to join us on this journey and experience the future of real estate, where technology and human expertise come together to create a smarter, more efficient way to buy and sell homes.
For more information or to get started with RealStar AI, visit our website, chat with our AI Real Estate Agent, or book a call today. We’re excited to help you make your next real estate transaction a success.
RealStar AI is on a mission to transform the real estate industry by eliminating real estate commissions. We’re building the world’s first AI real estate agent and committed to empowering consumers with the tools and support they need to confidently navigate the home buying and selling process without paying excessive fees. By combining cutting-edge AI technology with the expertise of licensed real estate agents, we offer a superior, seamless, transparent, and cost-effective alternative to traditional real estate services.