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Show HN: My Passion

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Re: Show HN: My Passion

#11
post #10

> and is hardly ever attacked my entrepreneurs > but literally you never hear about a real estate start up I don't think you're looking hard enough: Zillow, Trulia, 42Floors, Yahoo Real Estate, Redfin, Movoto I'm sure there are many more. Realty has poor technology because realtors generally don't utilize technology well. The MLS is a festering mess of non-normalized data, and no one cares because real estate is stil…

I am aware of all of them and do agree that real estate is still very much people-driven, and in my opinion always will be. That being said, the way Realtors market themselves these days is not effective enough, that coupled with just the sheer number of Realtors, (Over 1 Million), makes for a bunch of marketing noise.

Re: Show HN: My Passion

#13

Not to criticize, but what is the value from this particular service to someone who is buying or selling a home ? Are you making the process easier or just giving rewards like a credit card cashback etc ? I am asking since I would love to work with something that makes my buying or selling part easier. I want to know good realtors in my area, recommendations for my housing preference (based on factors such as afforda…

Our service may not be for everyone. If you are not concerned about a reward program, than most likely you would not use it. However, we do our best to connect our members with excellent Realtors in their marketplace, who are extremely knowledgeable in regards to affordability, what's on the market, etc..

Re: Show HN: My Passion

#14
You illustrate how real estate is under-served by technology, but your startup doesn't solve an offline problem with technology. Where's the Salesforce for realtors or property managers? Where's the service that makes selling your home easier? There are huge problems to solve in Real Estate. Finding/getting in touch with a realtor isn't one of them IMHO.

Re: Show HN: My Passion

#15
One thing you're wrong about- RE brokerage is under heavy fire right now and is being attacked by many, many startups.

The strongest moat that’s defended residential RE brokerage from disruption is the interdependent nature of the business. Because both the buyer and seller are represented by agents in most transactions, brokers must collaborate to close deals at the same time as they compete for listings. Buyers’ agents have an incentive only to show their clients homes whose sellers offer them a standard 3% commission. To attract more listings and still retain interest, sometimes seller’s agents offer to cut their own fees while still offering the full price to the buying agent. The reason that this approach hasn’t become widespread and significantly whittled down commission standards is that the vast majority of sellers’ agents are also buyers’ agents, meaning that both parties have a vested interest in preserving the commissions on either side of the table.

Because of this solidarity among buyers’ and sellers’ agents, the only way for the brokerage business to be hacked and rendered truly competitive is for one half of the equation to vanish. Either FSBO listings will have to become so widespread that sellers’ agents largely disappear from the picture or property search, negotiations, and closings have to be made so simple that buyers’ agents fade to irrelevance. But when one side crumbles, both sides do.

IMO, it's far easier to hack the buying-side process than the selling process. RealDirect and DotLoop are interesting in that they try to essentially automate the process of selling a property yourself (RealDirect by providing appraisal services, submitting listings to MLSes, and curating marketing channels etc. and DotLoop by standardizing legal docs/paperwork), but these companies face an uphill battle in convincing sellers that they are every bit as talented at receiving top dollar for their home.

IMO, the best way to hack the industry is to streamline combine a Trulia/Zillow/StreetEasy proprietary MLS with DotLoop's standardized legal/paperwork management system. The one missing piece is data-driven appraisals accurate enough to convince buyers of their worthiness. Nobody's quite got this down yet, but Kwelia seems to be closest. The trouble is that not enough sales data is available to accurately correlate prices to location/amenities/property info. Although most US cities maintain public data mines that contain title documents, many buyers mask their purchase prices with evasive chicanery that reads along the lines of "sold for $10 and other goods of significant consideration".

All that being said, your model of offering perks is an interesting way of convincing attracting clients to an existing brokerage. Partner with some furniture suppliers/local businesses to offer some exclusive discounts and I think you're onto something.

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