Federated Realty streamlining sales with flat-rate commission

Redfin might have disrupted the real estate space by offering lower commissions for sellers, but Federated Realty of Washington D.C. wants to take that number even lower. Rather than applying a standard 3 percent selling commission, or even Redfin’s 1.5 percent, the lean brokerage operates on a $1,000 flat fee structure -- no matter the price of the home. Federated collects the fee when the home is sold. The firm guarantees listing placement on over 200 websites, all while offering an in-office agent dedicated to the sale. Homeowners who aren’t completely satisfied can cancel at any time via the opt out clause. Prior to introduction, Federated Realty sold on behalf of developers in the D.C. metro, helping inspire this new model for homeowners. In order to gain more insight on this unique model and its tech-based benefits, Inman spoke with Artin Afsharjavan, CEO of Afshar Javan Capital Management, the principal investor of Federated Realty. Afsharjav...