Baron Briefs

Earlier this morning, I approved a ListingHedge™ for 3605 HAMMERKOP DRIVE in NORTH LAS VEGAS, NV making it the world’s first risk-free listing ever. OK, not entirely true since a ListingHedge™ is purchased and settled with BaronBucks during the beta period, but still a monumental moment. Here’s the breakdown:

If home sells….

+ $5,423 Est. Commission Side
- $2,000 Expenses
- $458 Cost of Hedge
= $2,965 Net Earning

If listing expires…

+ $0 Est. Commission Side
- $2,000 Expenses
- $458 Cost of Hedge
+ $5,500 Hedge Payout
= $3,042 Net Earnings

Today is the public beta launch of RealtyBaron.com’s latest and greatest, a risk management product for real estate agents called ListingHedge™. As the name implies, a ListingHedge™ allows an agent to hedge a listing. Put simply, a ListingHedge™ is used to reduce the financial risk agents accept when spending time and money upfront in exchange for a commission after a home sells. Traditionally, agents do not recover expenditures from an unsold listing. With a ListingHedge™ in place, however, an agent is still paid for work that does not result in a sales commission. The illustration below compares the traditional risk model to this new hedged risk model:

During the beta period, a ListingHedge™ is purchased and settled with BaronBucks™. Any broker or agent with a RealtyBaron.com account is automatically credited with $5,000 BaronBucks™ that can be used to purchase a ListingHedge™ for each listing the broker or agent is marketing.

After the beta period ends and the service officially launches, a ListingHedge™ will be purchased and settled with real money. BaronBucks™ accumulated by agents during the beta period will be converted to equity shares in (pre-IPO?) RealtyBaron, Inc.

To get started, follow these steps:

1. Log in or sign up at http://www.realtybaron.com/agent
2. Complete your AgentRank™
3. Upload your current listings
4. Hedge your current listings

Question, comments, or concerns? Add a reply below and I’ll respond.