Investor Relations

It Is Time To Rethink How Real Estate Is Sold

The recent Settlement by the National Association of Realtors and the large Class Action Commission Lawsuit franchise corporations has not only reshaped our core belief but also significantly altered Real Estate Space. This landmark decision, in favor of the Defendants (Consumers) 1.8 billion and counting, has brought about a profound shift in consumer perception of realtors and high commissions. This change, which we believe our investors and stakeholders should be fully aware of, has directly influenced our business model and expansion plans, prompting us to focus on marketing homes and offering transparent commission structures. 

Unlike many in the industry, our primary focus is marketing homes, not promoting individual agents. We operate in Greater Philadelphia, Leigh Valley Regions, and New Jersey, with plans to expand to New York, Connecticut, Florida, and Maryland in 2025. We are active members of Bright MLS, Greater Lehigh Valley MLS, the National Association of Realtors, and the Pennsylvania Association of Realtors. 

Our business is firmly founded on Commission Transparency. We offer home sellers a range of practical options, including the ability to list for 2%, a significantly lower rate than the industry standard. This unwavering commitment to transparency and consumer empowerment allows the Seller and buyer to connect directly before making an offer, promoting a more open and efficient transaction process. This should reassure our investors and stakeholders of our dedication to fair and transparent practices.

Our transparent commission structure, which includes the option to buy and sell directly at a 2% rate, a flat fee MLS service, and the opportunity to participate in online bidding and receive instant multiple cash offers, is designed to reassure our clients and instill confidence in our business practices. As the market shifts, consumers are becoming accustomed to taking more control of the sale and buying process with simplicity and clarity. Sellers no longer must wonder if we received all the offers, while buyers question whether there were really that many multiple offers.

 Rock Smart Realty is excited to introduce Moversnshakers.ai, a cutting-edge platform that combines traditional MLS marketing with advanced auction technology. This platform is designed to revolutionize the home-buying and selling experience, offering a transparent commission and an efficient and cost-effective real estate experience. Moversnshakers.ai brings the luxury home auction model to Main Street America, offering a 100% transparent online bidding platform. This innovation aligns with our commitment to transparency and consumer empowerment, and we are thrilled about the possibilities it opens up for the future.

 Following the Commission Class Action Lawsuit, which freed sellers from paying the buyer's agent commission and placed the buyer's agent role under scrutiny, we have responded with Moversnshakers.ai. This cutting-edge platform provides a direct communication line between buyers and sellers, eliminating intermediaries and ensuring fair transactions with a total commission of 2%. Moversnshakers.ai is our direct response to the changes brought about by the lawsuit, offering a solution that aligns with our commitment to transparency and consumer empowerment. 

Launching in Fall 2024 and available nationwide in 2025, moversnshakers.ai will be accessible to brokers and agents and for sale by owners on a subscription basis. The platform includes direct connections, inspection coordination, and electronic document review and signing, ensuring informed decision-making and transaction control. This nationwide expansion is a testament to our commitment to revolutionizing the real estate industry.

 The future of Residential Real Estate will be a transactional business like the UK, Australia, and other international markets, where commissions range from 2% to 3% split between Sellers and buyers. Traditional Brokerages and gurus fill the Internet with courses and webinars to soothe agents' fairs by convincing them to show clients their value and keep charging high commissions.  The Department of Justice has let the industry know they are watching and prepared to act. 

We stay true to our core beliefs with 100% commission transparency—our Commission Rebate on the Buy Side of the Purchase Price for our Buyer Clients. Many national and regional discounters decry high listing commissions but are not bashful about taking a full commission on the buyer's side from the Seller's commission. It is no wonder many are named in copycat commission lawsuits. 

Rock Smart Realty is committed to embracing and pursuing next-level technology through licensing, subscriptions, and third-party agreements. We have carefully chosen companies whose sole focus is to develop custom-tailored brokerage services, including Lead Generation, Predictive Consumer Analytics, Retargeting Artificial Intelligence, Optimized Social Media, Strong Internet Streaming, and Transaction Management. This commitment ensures we are always at the forefront of the industry, ready to adapt to the changing market, and provides our investors and stakeholders with a sense of security and confidence in our future. 

We provide our agents with 90% of their leads through sophisticated internet advertising, perfected social media, Amazon-like retargeting, proven upscale direct mail, and creative landing pages (What's Your Home Worth). All leads are distributed based on the agents' performance. We also have a stable of premier agents to whom we refer clients for a 35% referral fee. Rock Smart Realty promotes our brand. Our agents need to save money on self-promotion, relying on family & friends for business, or spending substantial amounts on prospecting in the clouded field of lead generation. Consumers are no longer fooled. 

There is one real estate agent for every 250 Residences in America. You can get a real estate license in most states with a cookie-cutter 75-hour course –then take your test. The old saying is that if that is easy, everybody will do it. To make matters worse, 84% have no sales or marketing experience, and 85% of consumers use different agents in their next real estate transaction. The industry is ripe for professional solutions like those in the travel, legal, and financial professions. Forty-nine percent of realtors sold one home or less in 2023, and 87% do not last over five years. 

During the epidemic years, buyer behavior changed, convincing consumers that Real Estate Transactions are not complicated and decrying paying high commissions. The buyers' revolt is in full gear, anticipating the new Buyer Agency Agreements. Many states now question whether it's even legal to tie up a potential buyer to view a property with an agreement that does favor their interests. 

We acknowledge it is one of life's most time-consuming financial events. 

We prepare each Seller and buyer with a road map outlining the steps needed to simplify the purchase promptly. To minimize the risks involved sight unseen, we offer a wide range of local services, including necessary home inspections and related ancillary services. 

We have become a One-Stop Brokerage where our Agents are Licensed Real Estate and Licensed Mortgage Loan Officers offering credit, lending, real estate, and title services. This strategy delivers high-value outcomes for Rock Smart Agents and our clients. Expansion by Franchising We operate in Pennsylvania and New Jersey and plan to expand to Delaware, Maryland, and New York in 2024 and 2025. 

Expansion by Franchising

Our Franchise Model, depending on sales revenue and market conditions, is scheduled to go on the market for the Mid-Atlantic Region in 2025. The Franchise Disclosure Document will be available in March 2025. All inquiries will be held in strict confidence. 

Franchising is a proven and well-accepted model for expansion in the Real Estate Industry. Most of the large, successful Real Estate Brokerages are Franchises. 

Our model uses a One-Stop Brokerage, Virtual Office. Franchises will be offered Low Overhead Office Space with full amenities via our Regus National Account. The Introductory Franchise Fee will be $9,995 and 5% of Gross Sales.

In Greater Philadelphia and Lehigh Valley, Our Exclusive Brokers for Hire Program, Using Licensed Master Brokers in Pennsylvania, is up and running for select offices. Real estate agents must be licensed as mortgage loan officers. We have partnered with a national credit union, where our agents can be licensed in 30 days or less. 

Our One-Stop Shop investment increases franchises' revenue stream via a centralized portal serving Sellers and buyers. This portal combines brokerage services, mortgage products/services, title, and ancillary services in an end-to-end platform.

moversnshakers.ai will be available nationwide to select brokers and agents on a subscription basis, with a 4% commission cap.

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