By: Colin Robertson
In a groundbreaking move that’s shaking up the real estate industry, startup Landian has emerged from stealth mode with a bold mission: to revolutionize how people buy homes. Founded by Josh Sitzer, Bryce Galen, and Neal Batra, Landian is the direct result of a landmark legal battle against the National Association of Realtors (NAR) that aims to transform the way real estate commissions work.
The story begins in 2017 when Sitzer and his wife were selling their home in Kansas City. Like many sellers, they found themselves frustrated by the standard 3% commission they were expected to pay to the buyer’s agent. This frustration led Sitzer to take action, and by 2019, he and other homeowners had filed a class-action lawsuit against the NAR.
The lawsuit, known as Moehrl et al. v. National Association of Realtors, et al., challenged the long-standing practices of the real estate industry. After years of legal battles, the case resulted in a significant victory for the plaintiffs. The NAR agreed to pay $418 million in damages and, more importantly, agreed to abolish the “Participation Rule” that required sellers to offer compensation to buyer’s agents.
This legal victory opened the door for new approaches to real estate transactions, and Landian is at the forefront of this change. The startup’s innovative model offers flat-fee real estate agents on demand, allowing homebuyers to benefit directly from the new rules resulting from the lawsuit.
Landian’s Disruptive Approach
Landian’s platform is designed to give power back to homebuyers. Users can import listings from any real estate site and then book home tours or prepare offers with licensed local agents without owing a traditional commission. This à la carte approach allows buyers to pay only for the services they need: $49 for each home tour and $199 for an offer prep session.
For those who want more comprehensive support, Landian offers a flat fee of $1,799, which includes up to five home tours and two offer prep sessions. Crucially, this fee is only due upon closing, ensuring that buyers don’t pay unless they successfully purchase a home through Landian.
This model represents a significant departure from the traditional real estate commission structure, where buyer’s agents typically receive up to 3% of the home’s sale price. As Bryce Galen, co-founder of Landian, points out, “With Landian, homebuyers are protected from the new reality of paying exorbitant commissions out of pocket that eat into their closing costs.”
The timing of Landian’s launch is no coincidence. With the NAR settlement changing the rules of the game, there’s a growing need for new models that can navigate this shifting landscape. While established players like Redfin and Zillow may be slow to adapt, startups like Landian are poised to lead the charge in reshaping the industry.
Jeremy Resmer, Founder of Value Land Buyers, shares his perspective on Landian’s approach:
“I’ve been in the real estate industry for over a decade, and I can tell you that Landian’s model is a game-changer. In my experience, buyers have been yearning for more flexibility and transparency in the home-buying process. Landian’s à la carte services and flat-fee structure address this need head-on. I recently worked with a client who saved thousands using their platform. It’s not just about cost savings though – it’s about giving buyers control over their journey. I believe we’re witnessing the future of real estate transactions unfold before our eyes.”
The potential impact of Landian’s model extends beyond just cost savings for buyers. By unbundling real estate services, the startup is forcing the industry to reconsider the value proposition of traditional buyer’s agents. This could lead to increased competition and innovation across the sector, ultimately benefiting consumers.
Ryan Whitcher, CEO of Harmony Home Buyers, offers his thoughts on the wider implications of Landian’s approach:
“As someone who’s been in the home buying business for years, I can see how Landian is shaking things up. Their model isn’t just about cutting costs – it’s about reimagining the entire home buying process. I recently spoke with a first-time homebuyer who used Landian. She told me she felt empowered to make decisions on her own terms. This shift towards consumer empowerment is long overdue in our industry. I believe Landian’s success will push other companies to innovate, leading to better services and more options for buyers across the board.”
The Future of Real Estate Transactions
As Landian continues to gain traction, industry experts are watching closely to see how traditional real estate companies will respond. The startup’s success could signal a broader shift in how homes are bought and sold, with technology playing an increasingly central role in connecting buyers with the specific services they need.
Mary Sullivan, Founder of A Company That Buys Houses, shares her insights on the potential long-term impact:
“In my years of buying houses, I’ve seen many attempts to disrupt the real estate market. But Landian’s approach feels different. It’s not just about technology – it’s about fundamentally changing the relationship between buyers, agents, and sellers. Last month, I worked with a seller who was thrilled to keep more of their equity thanks to Landian’s model. This isn’t just a win for buyers; it’s reshaping the entire ecosystem. I predict we’ll see a wave of innovation in response to Landian’s success, ultimately creating a more efficient and fair market for everyone involved.”
As the real estate industry continues to evolve in the wake of the NAR settlement, startups like Landian are well-positioned to capitalize on the changing landscape. By offering a more flexible, transparent, and cost-effective approach to home buying, they’re not just disrupting the market – they’re potentially reshaping it for generations to come.
James Heartquist, Founder of Modern Property Solutions, concludes with his thoughts on the future:
“I’ve been closely following Landian’s progress since their launch, and I’m genuinely impressed by their vision. In my work with property solutions, I’ve seen firsthand how outdated many real estate practices are. Landian is bringing much-needed innovation to the table. Just last week, I advised a client who used their platform and was amazed by the simplicity and cost savings. This isn’t just a fleeting trend – it’s the beginning of a major shift in how we approach real estate transactions. I’m excited to see how Landian and similar innovators will continue to push our industry forward.”
Published by: Holy Minoza