Real Estate’s New Robin Hood

In an age of shameless greed it seems odd to come across anyone whose professional motivation is to lower the cost of anything. It’s perhaps even less likely to find someone actually willing to give money back to customers unaware of their own overpayment. But to Paul Yalnezian, president of Right Home®, chivalry still stands for something in the new millennium. He has single-handedly turned the residential real estate industry on its ear by developing a more convenient, more secure and much more affordable way to buy or sell property. Unfortunately, there’s a swarm of Southern California independent Realtors® who would just as soon see him dangle from his own loophole.

Although Yalnezian spent his formative years attending a boarding school in his native Beirut, then high school at Melkonian Institute in Cyprus, he has adapted to the American business culture remarkably well. His nine years as a successful mortgage broker in Southern California not only earned him a place among the nation’s top 50 brokers, it exposed him to severe shortcomings in the residential real estate industry as well. It wasn’t until he bought his own home however, that he realized the scope of opportunity for positive change. With up to 30 different people involved in a single transaction, commissions as high as 7% and inconveniences ranging from mild irritations to having to rent back your own home after it sells, the answer seemed genuinely obvious—Right Home.

Right Home, now a two-year-old Glendale, California company, has adopted a completely different approach to the age-old practice of representing homebuyers and sellers. It features a full-time, salaried agent staff that is both multi-lingual and multi-cultural, in-house mortgage brokerage and banking services as well as in-house closing services. While the support staff and technological capabilities of the firm are formidable, the real payoff to consumers is the savings—Sellers pay as little as 1.5% total commission (instead of the typical 6%) and buyers of non-Right Home listings receive as much as 1.5% of the selling price in cash. "One recent client (a newly divorced mother of two) sold her home, purchased a new one and saved nearly $30,000 in fees and commissions," commented Yalnezian. Many Realtors® are affiliated with franchises that simply don’t allow discounts anywhere near that level. With some local agents making as much as 6 figure incomes, one can easily see why Right Home spells trouble.

Aside from the significant cost differences that Right Home offers, it brings something even more important to the table— responsibility. To the traditional system that relies solely on independent commissioned agents, the concept of security seems a distant ideal. "Until Right Home, there was no real accountability to the client regarding the big picture," says Yalnezian. "Home sellers and buyers have had to contract with outside vendors. That means when something goes wrong there really isn’t anyone they can hold accountable. It’s no wonder psychologists have long regarded moving as the third most stressful experience a human will ever endure," he said.

As part of its marketing and public service, Yalnezian has even taken Right Home to the airwaves. In fact, he has become the real estate version of "Emeryl Lugassi—the star chef of cable television." He appears on several local cable channels three times a week, in both Armenian and English. From the intricacies of a negative amortizing mortgage to the marketing ramifications of pet odor, Yalnezian addresses it all with candor, humor and a genuine desire to help consumers understand the arcane workings of real estate. Given the large amount of positive feedback received by the cable stations, including requests for additional airings, his efforts seem to be well accepted by the community.

Yalnezian himself was without a family home for the better part of 20 years. During that time he yearned to experience the essence of a family unit and the stability home ownership can provide. "During my childhood I had to rely on the benevolence of my immediate family and relatives for my own housing, " says Yalnezian. It’s perhaps that memory that inspires the 45 year-old bachelor to devote more than 70 hours a week to the cause of helping others achieve their dream of home ownership. "Momentum is really starting to build and people are finally realizing that this is for real," remarks Yalnezian.

Whether a shrewd district attorney or a gregarious violinist in the LA Philharmonic, Right Home clients have been sharing their elation and gratitude by willingly giving video testimonials that are aired during the TV shows. One ex-MIT scientist was so impressed with the service that he actually gave a video testimonial even though he, as the seller, was represented by a traditional agent. "One of our clients actually cancelled her listing with a major franchise and incurred a large penalty just to switch," says Yalnezian. Her hunch paid off when Right Home sold her property in just one week and saved her over $10,000 in commissions.

Although the biggest objection raised by prospective clients is that it sounds "too good to be true," Yalnezian has found a niche that suits him well. In an industry known widely for big commissions, big cars and big hair, Right Home’s president has sworn to breathe new life into its integrity and value. "Like Home Depot or Southwest Airlines, we‘ve built a working business model with national potential and are committed to finding the right financial backing to help take it to the next level," he said.

While he doesn’t actually steal gold from traveling aristocrats, he has helped create a service that aids Middle America in gaining a foot-up in the quest for home ownership and for that, he seems proud. "I don’t mind being viewed as a Robin Hood," says Yalnezian. "However, all Right Home employees share my commitment to changing real estate for the better and even have a stake in our future via their stock options. We all believe that honesty is, and will continue to be, an extremely profitable business ethic in years to come," he said. Given the number of client testimonials that are aired during his live TV shows, the good people of "Sherwood" should fear not of their bright future.

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