Thoughts on the residential real estate business getting uberized?

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  • Pipecrew
    Master of Gfy.com
    • Feb 2002
    • 14888
    #1

    Thoughts on the residential real estate business getting uberized?

    We've all seen the success of uber and airbnb, essentially disrupting middlemen style businesses.

    What is stopping one of these companies from coming in and disrupting the whole homebuying process with an App or concept that saves time and money?

    Searching for houses is essentially all done online now, you really only need a real estate agent to get you access to the house, negotiate poorly on your behalf while really negotiating for their best interest and do some paperwork (which should be automated)

    The breakdown of fees is 6% in most cases (3% to each sides realtor) and that really adds up. The MLS system is literally 1999 style dated which is showing a refusal to adapt.

    I feel like it's an easy sell, because we live in a time where people do not want to interact anymore. If they can do everything from a computer, they will.

    The advantages to the buyer and seller are also there via saving a lot of money and time.

    I am visualizing it just like buying a domain online.

    Thoughts?
    Tags: None
    • Jel
      Confirmed User
      • Feb 2007
      • 6904
      #2
      off topic: can you check your emails please mate, thanks

      /off topic

        Comment

        • Bladewire
          StraightBro
          • Aug 2003
          • 56220
          #3
          Real estate contract law, and execution of contracts, is what's stopping the real estate sector from being uberized. Great idea though keep up the brainstorming man!


          Skype: CallTomNow

            Comment

            • WiredGuy
              Pounding Googlebot
              • Aug 2002
              • 34514
              #4
              Who would be showing the homes? The owner or a third party?

              I agree that realtors are overpaid (4% on my home was a huge commission), but its also the biggest purchase of your life so you probably wouldn't want to cheap out on it.

              WG
              I play with Google.

                Comment

                • Pipecrew
                  Master of Gfy.com
                  • Feb 2002
                  • 14888
                  #5
                  Originally posted by Bladewire
                  Real estate contract law, and execution of contracts, is what's stopping the real estate sector from being uberized. Great idea though keep up the brainstorming man!
                  Elaborate?

                    Comment

                    • Pipecrew
                      Master of Gfy.com
                      • Feb 2002
                      • 14888
                      #6
                      Originally posted by WiredGuy
                      Who would be showing the homes? The owner or a third party?

                      I agree that realtors are overpaid (4% on my home was a huge commission), but its also the biggest purchase of your life so you probably wouldn't want to cheap out on it.

                      WG
                      That seems to be the easiest part to figure out, how much education does someone require to show a home? This is the kitchen, this is the bedroom.... could probably have Uber drivers do it, they have criminal background checks heh.

                      Someone sent me this link, it looks like it's already beginning. Redfin seems to be dabbling with the beginnings of the concept by cutting out brokers.


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                        Comment

                        • Brian mike
                          #Alberta51
                          • Oct 2014
                          • 8735
                          #7
                          Originally posted by WiredGuy
                          Who would be showing the homes? The owner or a third party?
                          3D VR style video visit of the property ?


                          To OP , I agree it would be a great idea.
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                            Comment

                            • Bladewire
                              StraightBro
                              • Aug 2003
                              • 56220
                              #8
                              Originally posted by Pipecrew
                              Elaborate?
                              Its complicated. Here's a small taste, and these rules & regulations can be different from county to county state to state:

                              12 Ways to Foul Up a Real Estate Transaction

                              You have a great idea and so many things have come together to make it happen. I just read what is stopping it from happening, and I'm just giving my thought that real estate contract law & regulation is a bitch for most laymen buyers/sellers.


                              Skype: CallTomNow

                                Comment

                                • Pipecrew
                                  Master of Gfy.com
                                  • Feb 2002
                                  • 14888
                                  #9
                                  Originally posted by Bladewire
                                  Its complicated. Here's a small taste, and these rules & regulations can be different from county to county state to state:

                                  12 Ways to Foul Up a Real Estate Transaction

                                  You have a great idea and so many things have come together to make it happen. I just read what is stopping it from happening, and I'm just giving my thought that real estate contract law & regulation is a bitch for most laymen buyers/sellers.
                                  Redfin.com seems to be starting to pull it off, gutting the commissions. They most likely pay some part time jr agent to show you the house and they handle all the paperwork and both the buyer and seller win.

                                    Comment

                                    • Goethe
                                      So Fuckin' Bored
                                      • Nov 2014
                                      • 1101
                                      #10
                                      It's already being done to an extent. Online realtors are offering flat fees based on service offered. Just want a simple listing and you handle the visitors, very low charge. Once you've negotiated a sale price, just give each other your conveyancer/lawyers details and they'll draw up contracts and exchange. Traditional estate agents just market, negotiate and pass on each partner's details. If you can open your door and talk, you can cut out the estate agent. These guys have just arrived here https://www.purplebricks.com.au/
                                      yes

                                        Comment

                                        • AmeliaG
                                          Too lazy to set a custom title
                                          • Jan 2003
                                          • 10667
                                          #11
                                          Originally posted by WiredGuy
                                          Who would be showing the homes? The owner or a third party?

                                          I agree that realtors are overpaid (4% on my home was a huge commission), but its also the biggest purchase of your life so you probably wouldn't want to cheap out on it.

                                          WG

                                          Shark Tank just had a self-showing lockbox run from an app. Wow would I like to view houses without making small talk with a realtor.
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                                            Comment

                                            • Rochard
                                              Jägermeister Test Pilot
                                              • Dec 2001
                                              • 75748
                                              #12
                                              It's only a matter of time before this happens. Car buying too. These things are too freaking complicated. Download an app, enter in your social security number, apply for a loan, instantly get a response, walk into a dealership, click on buy, the screen shows you how much the car costs, how much interest you will pay, how long your loan is, how much the payments are, walk out with car keys in moments.
                                              Herschel Savage
                                              Brooklyn, NY

                                                Comment

                                                • Barry-xlovecam
                                                  It's 42
                                                  • Jun 2010
                                                  • 18083
                                                  #13
                                                  State licensing and regulation.

                                                  Uberizing would apply to FSBO (for sale by owner) transactions possibly.

                                                  Most (all?) sates have a law that regulates the sales of properties by owners or principals to 4 or less properties per year -- so you need a broker's license to sell multiple properties per year. There are complex ownership schemes one can use. A corporation counts as a legal person, etc.

                                                  There could be a Uber Broker (state licensed) selling as an agent over an Internet platform for a flat fee or something of that nature ... National sales would have to be using state government licensed brokers. You cannot escrow money then record property titles and loans without a state license either.

                                                    Comment

                                                    • RTP
                                                      aka Jimmy James
                                                      • Nov 2006
                                                      • 1335
                                                      #14
                                                      Redfin, Compass, Estately... the list goes on

                                                      In RE the only real reason you need a Realtor as a buyer is no longer to help you tap into off market properties or to find homes, but most of that can be found anywhere as data is aggregated directly from the MLS.

                                                      For a buyer it's more so for protection and navigating the process dealing with termite, inspections and to negotiate..if all that is done via a buying from a site, really no need for them. As a seller, it saves so much more money eg. Redfin 1.5% versus 6%, here with our avg home price at 900k-1M, and a mad buyers market (30 day listing) it's logical to ditch the old RE model which is, for the most part dead and more transactional just like mortgages and everything else.

                                                      Just like TrueCar for cars, no need to step on the lot and deal with commissions sales people...pre-priced, go on lot, test drive - like - buy

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                                                        • mineistaken
                                                          See signature :)
                                                          • Apr 2007
                                                          • 29656
                                                          #15
                                                          Besides easier to find listings (internet) - nothing much changed in terms of your need for broker.
                                                          You could have sold your house without them before, same now.

                                                            Comment

                                                            • slapass
                                                              Too lazy to set a custom title
                                                              • Nov 2002
                                                              • 14625
                                                              #16
                                                              For a flat fee I can listed in the MLS. Then I just handle it from there. I save the 3% on my side.

                                                                Comment

                                                                • TCLGirls
                                                                  Confirmed User
                                                                  • Feb 2010
                                                                  • 3068
                                                                  #17
                                                                  Originally posted by Pipecrew
                                                                  We've all seen the success of uber and airbnb, essentially disrupting middlemen style businesses.

                                                                  What is stopping one of these companies from coming in and disrupting the whole homebuying process with an App or concept that saves time and money?

                                                                  Searching for houses is essentially all done online now, you really only need a real estate agent to get you access to the house, negotiate poorly on your behalf while really negotiating for their best interest and do some paperwork (which should be automated)

                                                                  The breakdown of fees is 6% in most cases (3% to each sides realtor) and that really adds up. The MLS system is literally 1999 style dated which is showing a refusal to adapt.

                                                                  I feel like it's an easy sell, because we live in a time where people do not want to interact anymore. If they can do everything from a computer, they will.

                                                                  The advantages to the buyer and seller are also there via saving a lot of money and time.

                                                                  I am visualizing it just like buying a domain online.

                                                                  Thoughts?

                                                                  Three words: MULTIPLE LISTING SERVICE.

                                                                  As a seller, you want your home listed on the MLS to attract the largest pool of potential buyers.

                                                                  And guess who controls the MLS...yep realtors. They are not about to open up th MLS for free to any uber type movement.

                                                                  Additionally, as a seller, you will also want to be offering the buyer's agent at least 2.5%. Why? Because if you don;t then no buyer agents will even show your house to their prospective buyers.

                                                                  Realtors have the game covered.

                                                                    Comment

                                                                    • TCLGirls
                                                                      Confirmed User
                                                                      • Feb 2010
                                                                      • 3068
                                                                      #18
                                                                      A few years ago I sold my house FSBO (For Sale By Owner) up in Portland Oregon. You wouldn't believe the number of "window shoppers" and flim flam that came through. Hardly any of them came pre-approved for a home loan. And many of them wanted some sort of "creative financing".

                                                                      So if there was an uberization of the residential real estate market, it would be good to put in a filter against those types of "buyers". They are a big waste of time.

                                                                        Comment

                                                                        • altmman
                                                                          Confirmed User
                                                                          • Jan 2015
                                                                          • 468
                                                                          #19
                                                                          Originally posted by TCLGirls

                                                                          As a seller, you want your home listed on the MLS to attract the largest pool of potential buyers.

                                                                          Additionally, as a seller, you will also want to be offering the buyer's agent at least 2.5%. Why? Because if you don;t then no buyer agents will even show your house to their prospective buyers.


                                                                          Yup. If Im an agent and I see House A is offering me 2% to sell his house and House B is offering me 3%, I'm going to show House B first. I might never show the buyer House A.

                                                                          Buyers go with agents because they get free representation. You're buying a house and you're scared to death of making the wrong move, of course you'll want representation.
                                                                          If you use shit real estate services you'll get more shit buyers who aren't qualified wasting your time, and probably some criminals in there who want to scope out houses to rob.

                                                                          No one is going to want unqualified, unrepresented, unvetted, and unknown strangers coming into their house looking around.

                                                                            Comment

                                                                            • Google Expert
                                                                              Webmaster
                                                                              • Jun 2004
                                                                              • 14294
                                                                              #20
                                                                              Agents also do all the paperwork, no?

                                                                                Comment

                                                                                • Paul Markham
                                                                                  Too old to care
                                                                                  • Jun 2001
                                                                                  • 52942
                                                                                  #21
                                                                                  A house or property is the biggest purchase or sale of one's life. Getting a good lawyer and surveyor is essential.

                                                                                  What does a Realtor do that's so vital? Even sorting out those who have the money ready is something they're not great at. Which is why chains develope and collapse.



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