A Note From Our Co-Founder: Our Mission Includes Homebuyers and Agents

In the real estate world, traditional ways are being questioned, and change is on the horizon, especially in the wake of the National Association of Realtors (NAR) legal challenges. These changes have opened a dialogue about the need for more transparent and consumer-friendly options in the home buying process. At the forefront of this movement is Charles Denson, our Co-Founder, who is a proven entrepreneur and also a licensed Texas real estate broker who has been involved in thousands of Texas transactions. Recognizing inefficiencies and pain points, Charles developed Mako Contracts—an AI-driven platform aiming to revolutionize how homebuyers engage with real estate contracts. During this engineering process, Mako was vetted and approved to become a Texas Association of Realtors official contract form vendor.

A New Era of Homebuying

The current state of the real estate industry often leaves homebuyers feeling constrained by outdated practices. Before the NAR legal challenges, Buyer Agents managed transactions for a commission shared from the Listing Agent (i.e. 3% of the sales price), paid by the Listing Agent as a portion of their 6% commission (paid by the seller). Fast forward to mid 2024, and buyers are oftentimes on the hook for this 3% fee to their agent, which can significantly impact a buyer’s budget. Yes, there are some sellers still paying Buyer agents directly, but it is mixing up the traditional flow of doing business. While roughly 80% of buyers still rely an agent’s expertise, the figure has dropped from 90% in 2022, thanks to a rise in technology that empowers Buyers to take more control. This shift signals a demand for alternatives in the marketplace.

Mako Contracts offers an innovative solution that complements, rather than replaces, real estate agents. It provides an opportunity for homebuyers to represent themselves, saving significantly on commissions while still accessing professional-grade tools to craft and manage their offers. This appeals to Listing Agents to plug into an important segment of buyers.

The Value Proposition of Choices

Listing Agents

Listing agents continue to play a critical role in marketing properties. They offer invaluable support by creating effective marketing strategies that attract buyers, leveraging their networks and expertise to ensure sellers receive the best possible offers.

Buyer Agents

For many, the comfort of having a seasoned negotiator is worth the commission fee. Buyer agents provide insights into local markets, assist with negotiations, and often manage the complex paperwork associated with real estate transactions. This service remains valuable, especially in luxury markets where transactions require more nuanced understanding and care.

Self-Representation

Enter Mako Contracts—the tool that empowers buyers to handle their own transactions confidently. With our automated platform, buyers can draft, review, and submit contracts with ease, all guided by AI built specifically for Texas real estate. This option is particularly appealing to price-sensitive buyers seeking to preserve their funds for down payments or future expenses.

Addressing the Critics

Critics may argue that the majority preference for Buyer Agents highlights their continued relevance. However, the steady decline in reliance suggests a growing openness to alternatives. Technology provides tools like Mako Contracts that make self-representation feasible, offering buyers new ways to engage with the market on their terms.

The recent NAR settlement highlights a shift towards transparency and efficiency in real estate practices. Consumers benefit when they can choose how to engage with the market, whether through traditional routes or innovative technologies.

Our goal is to complement Agents rather than replace them. The comparison of Priceline with Travel Agents is not particularly appropriate, since a home purchase is much more sophisticated than buying airplane tickets. We are more similar to TurboTax; built for homebuyers looking for a DIY tool and Realtors to upgrade their tech stack. We recognize an Agent is vital to many parts of the listing process and some buyers will always prefer an agent to represent them. We proudly serve all the primary stakeholders: Buyers and Agents (including their seller clients) every day with a passion to bring the industry forward.

Embrace Innovation for Transparency

If you’re ready to explore a new way of making offers on your next home, consider trying Mako Contracts for free before hiring a Buyer’s Agent. And if you’re a Listing Agent, you can incorporate Mako into your toolkit to enhance your market reach and save your seller commission payments beyond your listing fee. Sign up today and experience first-hand how Mako Contracts can transform your home buying and listing experience.

Together, let’s pave the way for a more transparent, consumer-friendly real estate industry where everyone has the tools to succeed.