Live data from Hacker News

Launch HN: Modern Realty (YC S24) – AI Real Estate Agent for Home Buyers

news.ycombinator.com

241–250 of 310 posts

Re: Launch HN: Modern Realty (YC S24) – AI Real Estate Agent for Home Buyers

#241
post #239

Earlier quoted context omitted.

Tesla does all of this and they do it without dealerships. The problem with dealerships is they’re independent franchised businesses that extract but do not create value, not that they are buildings full of cars.

I think you missed the part about "towns across the country". For almost 20k towns and cities in the US there are 245 Tesla storefronts.

The idea that you have to go to a dealership is what’s being challenged.

If you have faith in the brand, is it that much more absurd to buy via transfer?

Re: Launch HN: Modern Realty (YC S24) – AI Real Estate Agent for Home Buyers

#242

Earlier quoted context omitted.

If there was a serious opportunity to arbitrage under the 6% fee, you bet that someone would have done it already — and well before the AI era.

To be fair, NAR goes to great lengths to maintain their monopoly and lock out anyone who tries to buy or sell a house without using them....specifically because they know they're priced insanely high for the services they provide and are in real danger of being undercut.

> NAR goes to great lengths to maintain their monopoly

Went to great lengths, considering they've lost a few major court cases and are now prohibited from their prior shenanigans.

https://en.m.wikipedia.org/wiki/National_Association_of_Real...

Re: Launch HN: Modern Realty (YC S24) – AI Real Estate Agent for Home Buyers

#243

Best of luck. I’m a commercial real estate professional who has spent time as a broker, lender, and private equity investor. Residential definitely is a lot More of a ridiculous market. But ultimately as an agent, you get hired to work with mostly irrational actors (sellers and buyers). As someone who is very interested in AI and taught myself how to code (I don’t know any other real estate people who know anything a…

The ludicrous 6% fee is whats going to drive adoption by end users and in turn by brokers. Move that fee to 1% for buyer agent and you have a massive market.

The fee is already 1% in a lot of places after the NAR ruling earlier this year so that arbitrage is mostly gone.

Re: Launch HN: Modern Realty (YC S24) – AI Real Estate Agent for Home Buyers

#244

Earlier quoted context omitted.

If there was a serious opportunity to arbitrage under the 6% fee, you bet that someone would have done it already — and well before the AI era.

To be fair, NAR goes to great lengths to maintain their monopoly and lock out anyone who tries to buy or sell a house without using them....specifically because they know they're priced insanely high for the services they provide and are in real danger of being undercut.

Ever since Zillow/Redfin came out, there hasn’t been a need to use a real estate agent. All buyers are getting push notifications 24/7.

If you want to save on commission, then get the pics taken yourself, and pay a listing service a few hundred dollars for your property to show up on Zillow/Redfin.

Re: Launch HN: Modern Realty (YC S24) – AI Real Estate Agent for Home Buyers

#245
post #20

There are good realtors and bad realtors. I could imagine an AI chat bot that was better than some of the mouth breathers out there. But I wouldn't use those people anyway. But there are good people in the real estate business . if you want someone that can negotiate a good deal, and answer complex questions specific to the local laws, who knows the local neighborhood, and the local realtors, who can handle last minu…

Yeah it’s pretty hard to imagine an AI negotiating important stuff.

I bought my first house last year and the amount of back-and-forth was insane. So many different ways to move money around, so many different conflicting and seemingly-but-not-actually-conflicting interests.

My agent recommended we get a sewer scope, even though the inspector didn’t think we needed one. Well guess what? The sewer line was fucked, and could back up at any moment and destroy the finished basement.

Thus ensued many many more emails and small changes to contracts that many people needed to sign. It seemed like such a random thing, but all of a sudden $10,000 was on the line that nobody knew existed. All because my agent had worked in that neighborhood before, and knew that those sewer lines were all old!!

After that experience, I’m convinced you cannot automate out the human element of real estate. There is so much nuance, and the stakes are so high.

But like you said, I think there’s room for a LOT of automation in tools that realtors use. And if you can make realtors more productive, maybe you can get fees down.

I think that’s compass’s main draw. They make a bunch of fancy internal tools for their realtors to use, so that they can do more business at a lower rate. At least I think I remember hearing that on a podcast once…?

Re: Launch HN: Modern Realty (YC S24) – AI Real Estate Agent for Home Buyers

#246

Earlier quoted context omitted.

I actually do believe that AI can make someone feel more comfortable with their purchase. Let's break down the communications that realtors currently do to comfort buyers (mostly over text, which is also how we communicate): Tell you comparably priced properties - we do this. Remind you the steps in the process - we do this. Tell you basic stats about local transactions (such as telling dejected buyers that only 1/6…

> we do this Everything you've described could be achieved with a basic web app. Not seeing what AI brings to the table here other than being a fake human that gives inaccurate advice ~5-10% of the time. Which seems risky when I am making the biggest financial decision of my life.

Shall I tell you about the qualified and professional human appraisers that I’ve hired in the past? I usually get results in the range of 0.5x-5.0x what is realistic market. I had a job that I would hire usually at least 3 appraisers for every transaction and could pick which appraisal to share with insurance, lenders, etc based on whether a high/low value would benefit me. Humans are flawed too.

Re: Launch HN: Modern Realty (YC S24) – AI Real Estate Agent for Home Buyers

#247

Earlier quoted context omitted.

> we do this Everything you've described could be achieved with a basic web app. Not seeing what AI brings to the table here other than being a fake human that gives inaccurate advice ~5-10% of the time. Which seems risky when I am making the biggest financial decision of my life.

Shall I tell you about the qualified and professional human appraisers that I’ve hired in the past? I usually get results in the range of 0.5x-5.0x what is realistic market. I had a job that I would hire usually at least 3 appraisers for every transaction and could pick which appraisal to share with insurance, lenders, etc based on whether a high/low value would benefit me. Humans are flawed too.

What you describe there has nothing to do with humans being flawed.

There simply isn't any "right answer" for how much a house is worth.

I've used countless web-based valuation services and they all had quite large price ranges as well.

Re: Launch HN: Modern Realty (YC S24) – AI Real Estate Agent for Home Buyers

#248
Oh that's adorable. Wake me when your agent has solid connections with skilled professionals in every construction trade known to man, a stable of home inspectors on speed dial, and can handle every aspect of scheduling involved in all of that.

Re: Launch HN: Modern Realty (YC S24) – AI Real Estate Agent for Home Buyers

#249

Earlier quoted context omitted.

FWIW services like Redfin list their fees right upfront.

Fwiw redfin is also tiny with 0.78% market share and slim or negative profits

How much market share do you have?

Re: Launch HN: Modern Realty (YC S24) – AI Real Estate Agent for Home Buyers

#250

Earlier quoted context omitted.

Prior to the changes which only went into place in August, agents were colluding to keep fees artificially high. Buyers' agents would actually hide listings that promised less than what they wanted and all of that information was hidden from buyers until the buy/sell agreement. It is way too early to say exactly what the impact will be, but as an anecdote my agent accepted 2% on the home I just closed on. My predicti…

>agents were colluding to keep fees artificially high Sitzer-Burnett involved a very narrow definition of collusion... essentially one Kansas City MLS had a mandatory input field for a seller-paid buyer commission. Realizing the risk of copycat lawsuits, the NAR got involved and decided to settle. Both Sitzer and Burnett should have gone after their own agents rather than turning this into a national issue. >My predi…

Not having an agent works great here in EU, you just hire an engineer to inspect the home to find any issues and then the bank reviews some of it as well (if you are getting a mortgage) and finally you get the sale contract notarized by the banks laziest employee and done. Not sure what an agent will help with these days where everything is online.
Post reply on HN