Selling a home represents a significant financial event for most individuals, yet the process is often fraught with complexity and potential pitfalls. Traditional real estate transactions can leave sellers feeling at a disadvantage, navigating opaque pricing and pressure tactics. However, a growing movement towards transparency is challenging the established norms of the industry, offering homeowners greater control and visibility throughout the sales process.
One such disruptor is Lystr, a platform founded by Chris Scullin that aims to empower sellers with complete transparency while still providing agent support. Scullin argues that while not all real estate agents operate unethically, the commission-based structure incentivizes certain behaviors that may not always align with the seller’s best interests. “There are some tactics employed by less scrupulous sales agents,” he says. “Whether you have a good agent or bad, Lystr exists to make it a moot point. These tactics can’t thrive in transparency.”
The core issue, according to Scullin, lies in the inherent asymmetry of information. Agents, working on commission, have a vested interest in maximizing the sale price, but that incentive doesn’t always translate into the optimal outcome for the seller. One common tactic involves inflating initial appraisals to win the listing, only to later pressure sellers to lower their expectations. Scullin advises potential sellers to scrutinize comparative market analyses (CMAs) provided by agents, demanding concrete evidence to support the appraised value before committing to a 90-day contract. “Once you’re there, unlike with Lystr, you’re a captive customer,” he explains.
Beyond inflated appraisals, agents may also employ tactics designed to create a false sense of urgency. Fabricating interest from other potential buyers is a common strategy, designed to push sellers into accepting offers quickly. As real estate coach Tom Panos notes, “If they are prepared to lie for you, they are prepared to lie to you.” This highlights the importance of verifying claims and maintaining a critical perspective throughout the negotiation process.
Another area of concern is the prevalence of auctions. While often presented as a fast-track to a competitive sale, Scullin questions whether auctions truly benefit sellers. Recent data from Cotality shows Canberra’s auction clearance rates are just below 70 percent as of . However, the reported clearance rates may be artificially inflated due to underreporting of “passed in” or “withdrawn” auctions – properties sold below reserve. Properties listed without a price, a common practice in auction campaigns, receive significantly lower engagement according to research from Elite Agent.
Scullin argues that the traditional four-week auction timeline may not be sufficient to allow the market to accurately assess a property’s value. “If market time is 60 days, does four weeks really give the property enough coverage and the market enough time to identify the property’s true value?” he asks. He suggests that auctions primarily benefit agents, allowing them to quickly close a deal and collect a commission for a relatively short period of work.
The financial incentives for agents can further exacerbate this misalignment of interests. Scullin points out that a commission of 2.2 percent on a $10,000 increase in the sale price yields only $220 for the agent. “$10,000 might be a big win for the seller, but $220 hardly motivates an agent — they’re better off selling quickly and moving on.”
Lystr offers an alternative approach, providing sellers with transparent, fixed-price packages and allowing them to customize the level of support they receive. Early results indicate that sellers using the platform have achieved prices at or above appraisal, while paying significantly lower commissions than traditional agents. This challenges the assumption that professional agents consistently negotiate higher sale prices.
“The jury is out on whether that’s true and accounting for fees, the net outcomes of professional versus private sales are even less certain,” Scullin states. “The truth is nobody can tell your property’s story better than you, given the chance to do it with the right guidance.”
The emergence of platforms like Lystr signals a broader shift towards greater transparency and seller empowerment in the real estate market. While the traditional agent model is unlikely to disappear entirely, the demand for greater control and clarity is growing, forcing the industry to adapt and prioritize the needs of the homeowner.
