Thoughts on the residential real estate business getting uberized? - GoFuckYourself.com

Pipecrew · 12-12-2016, 05:11 PM

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?

Jel · 12-12-2016, 05:17 PM

off topic: can you check your emails please mate, thanks

/off topic

Bladewire · 12-12-2016, 05:17 PM

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!

WiredGuy · 12-12-2016, 05:23 PM

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

Pipecrew · 12-12-2016, 05:24 PM

Quote:

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?

Pipecrew · 12-12-2016, 05:27 PM

Quote:

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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Brian mike · 12-12-2016, 05:27 PM

Quote:

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.

Bladewire · 12-12-2016, 05:30 PM

Quote:

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.

Pipecrew · 12-12-2016, 05:44 PM

Quote:

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.

Goethe · 12-12-2016, 06:05 PM

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/

AmeliaG · 12-12-2016, 06:22 PM

Quote:

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.

Rochard · 12-12-2016, 06:39 PM

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.

Barry-xlovecam · 12-12-2016, 06:44 PM

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.

RTP · 12-12-2016, 07:23 PM

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

mineistaken · 12-12-2016, 07:31 PM

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.

slapass · 12-12-2016, 08:19 PM

For a flat fee I can listed in the MLS. Then I just handle it from there. I save the 3% on my side.

TCLGirls · 12-12-2016, 11:47 PM

Quote:

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.

TCLGirls · 12-12-2016, 11:56 PM

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.

altmman · 12-12-2016, 11:59 PM

Quote:

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.

Google Expert · 12-13-2016, 12:10 AM

Agents also do all the paperwork, no?

Paul Markham · 12-13-2016, 01:00 AM

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.

12-12-2016, 05:11 PM	#1
Pipecrew Master of Gfy.com Industry Role: Join Date: Feb 2002 Posts: 14,885	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?

12-12-2016, 05:23 PM	#4
WiredGuy Pounding Googlebot Industry Role: Join Date: Aug 2002 Location: Canada Posts: 34,461	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.

12-12-2016, 06:39 PM	#12
Rochard Jägermeister Test Pilot Industry Role: Join Date: Dec 2001 Location: NORCAL Posts: 73,426	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. __________________ “The choice is no longer between right or left. The choice is between normal and crazy.” - Sarah Huckabee Sanders YNOT MAIL \| THE BEST ADULT MAILING SOLUTION

12-12-2016, 07:23 PM	#14
RTP aka Jimmy James Industry Role: Join Date: Nov 2006 Location: Newport Posts: 1,335	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 __________________ Jimmy James ATKingdom/AMK Empire Since 1996 - My Movies Home of ATKGirlfriends - Where we take pornstars on trips...and fuck them. Connect with me on LinkedIn

12-13-2016, 01:00 AM	#21
Paul Markham Too old to care Industry Role: Join Date: Jun 2001 Location: On the sofa, watching TV or doing my jigsaws. Posts: 52,943	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. __________________ Blowout deal. 880 videos, 2,400 image sets, plus many RAW videos. $500. PM me for a deal. Skype Paulmarkham70

12-12-2016, 05:17 PM	#2
Jel Confirmed User Industry Role: Join Date: Feb 2007 Posts: 6,904	off topic: can you check your emails please mate, thanks /off topic

12-12-2016, 05:17 PM	#3
Bladewire StraightBro Industry Role: Join Date: Aug 2003 Location: Monarch Beach, CA USA Posts: 56,229	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!

12-12-2016, 06:05 PM	#10
Goethe So Fuckin' Bored Industry Role: Join Date: Nov 2014 Location: Across the Universe Posts: 1,085	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/

12-12-2016, 06:44 PM	#13
Barry-xlovecam It's 42 Industry Role: Join Date: Jun 2010 Location: Global Posts: 18,083	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.

12-12-2016, 07:31 PM	#15
mineistaken See signature :) Industry Role: Join Date: Apr 2007 Location: ICQ 363 097 773 Posts: 29,656	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.

12-12-2016, 08:19 PM	#16
slapass Too lazy to set a custom title Join Date: Nov 2002 Location: Earth Posts: 14,622	For a flat fee I can listed in the MLS. Then I just handle it from there. I save the 3% on my side.

12-12-2016, 11:56 PM	#18
TCLGirls Confirmed User Industry Role: Join Date: Feb 2010 Location: California Posts: 3,068	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.

12-13-2016, 12:10 AM	#20
Google Expert Webmaster Industry Role: Join Date: Jun 2004 Posts: 14,294	Agents also do all the paperwork, no?