OT: Business idea, Your thoughts please Options

[Qarl]

I've got a business idea. Your thoughts might sway me if I want to spend more time on it.

Disclaimer: I realize this is not a novel idea. There are many like it, variations of it, etc. I am just thinking that the timing is right to offer something different and cheaper.

The Florida real estate market is booming... bonkers is more like it.

You have several choices...

1. Realtor - safe but expensive
2. Assist to sell or BuyOwner services - cheaper and relatively safe
3. For Sale by owner - riskier - but lest cheaper for the seller and buyer.

Using a realtor is always a safe bet, because they do most of the critical and legal work for you, and bring clients to you.

However, I sold my last two houses by myself.

For the most recent one, I put a sign up, created a website with some domains I own, created some flyers and got about 3-4 inquiries per day... up to 20 on weekends. Sold the house (pre-boom) in less than a month and saved thousands.

I am thinking of a very simple business where you offer people that want to sell their own homes the following...

1. Custom For Sale sign (standardized design)
2. Customized website with description and photos
3. Online printable flyers that they can put in an info tube in front of their house
4. Online (secure) e-mail inquiry form from potential buyers
5. Lists of vendors in the area to assist with the rest of the process (i.e., home inspectors, title agents, repair people).
6. All of the forms they need online to help with the deal (sales contracts, inspection lists, etc.)

How it works:

Make it simple: The seller could go online and fill out a questionnaire about their home (used to generate the website content), upload up to 10 digital photos, pay with a credit card securely, and have their custom home website up in less than 24 hours.

Make it reasonable: $100 for first month which inlcudes the setup fee and 2 yard signs... each additional month is $35 or they could buy a 3-month package for $150.00

Easy for the buyers: The buyer would drive by the home, see the For Sale By Owner sign, with the web address and property ID # on it. For example:


FOR SALE
BY OWNER

View online at:
buymyhome4sale.com

Property ID# 1234


The interested buyer goes home, goes to the website, enters the property ID# and can find out all about the house, see photos of it, ask questions, make an offer, etc.


Pitfalls

1. The most difficult part would be the web interface to collect and generate the websites. Once it was developed it would be almost automatic.

2. The next most difficult part is the signs. They could be made in bulk (sans the property ID #). Once it's generated, all you do is add the ID #.The sellers could pick up from the main office or have delivered to their home for... say $20.00

3. Could be difficult to actually convince people to do it. (i.e., may take a lot of effort at the beginning).

4. Obvious legalities (you have to have a pretty good disclaimer obsolving you of all of the potential legalities for deals gone bad, contract issues, etc.)

5. Pissed off realtors


Additional revenue generating ideas:

You could generate revenue by having advertisers of services available to buyers and sellers (title agents, home inspectors, lenders, etc.) Heck if you had 25 advertisers paying $50 to $100 per month, that's pretty decent

I could offer additional revenue-generating services - such as whole home photography for $100, and IPIX 3D walk-through for $X



Finally... how to get customers...

Well, driving around beighborhoods to start. The newspaper is another idea.

Heck, I even envision Realtors using it as a cheap way to list their own homes!



Okay... so you get the idea... Give me some more ideas, some pitfalls, etc.

[Mueller]

we've been having tons of homes go up for sale in our area, most are being sold by a realtor in just a few days to a few weeks.....the few homes being sold by "help-you-sale" or "by owner" are on the market for much longer time periods....some of it is due to the seller only wanting to give X-amount to the the buyers realtor which slows things down somewhat....

our last home sale generated about $50K for the realtors to split..damn, that money would have done wonders to my savings account (IMG:http://www.914world.com/bbs2/html/emoticons/smile.gif)

but, even after "giving" that money away, I was better off having a licecsend realtor due to some complications with the house and how the city labled it (2 unit rental, city had it listed as single family, our realtor went thru the leg work to prove to them otherwise, made it worth more as an investment property)

[GWN7]

Same idea was started up here by a guy I used to work with (he's retired now) had a lot of legal hassels from the realtor boards when he first started (unlicenced realtor, ect) their web site is http://www.comfree.ca/

[Qarl]

That's one of the issues I see... all of the crap that can happen. Again, though... this isn't a Seller's assist service... merely a sign and web marketing service.

The extra stuff - like recommended vendors, real estate forms, is just for their benefit, etc. We can tell them what they need to do, and who can help them, but they are on their own.

The local Assist-to-Sell places still end up charging $2K to $4K for their stuff and really don't do much more than I would be offering.

And I have a friend who is interested in this too... and he is a licensed realtor. (IMG:http://www.914world.com/bbs2/html/emoticons/smile.gif)

Dunno... (IMG:http://www.914world.com/bbs2/html/emoticons/confused24.gif)

Keep throwing ideas out.

[Qarl]

Change of Subject: I saw a store today where you drop off your junk and they sell it on e-bay. (and take a cut of course).

They photograph it, value it, list it, collect money for you and ship it!

Cool idea!

[Allan]

QUOTE (Mueller @ Jun 13 2005, 06:59 PM)

we've been having tons of homes go up for sale in our area, most are being sold by a realtor in just a few days to a few weeks.....the few homes being sold by "help-you-sale" or "by owner" are on the market for much longer time periods....some of it is due to the seller only wanting to give X-amount to the the buyers realtor which slows things down somewhat....

But a 12% savings is still worth the extra weeks, I would think.

[Mueller]

QUOTE (Headrage @ Jun 13 2005, 07:11 PM)

QUOTE (Mueller @ Jun 13 2005, 06:59 PM) we've been having tons of homes go up for sale in our area, most are being sold by a realtor in just a few days to a few weeks.....the few homes being sold by "help-you-sale" or "by owner" are on the market for much longer time periods....some of it is due to the seller only wanting to give X-amount to the the buyers realtor which slows things down somewhat.... But a 12% savings is still worth the extra weeks, I would think.

most seem to be "months".......

I guess for the experianced buyer and seller it would work, as a newbie, some people will be hesitant....

I don;t think it's a bad idea.........

[MoveQik]

I have a few thoughts on this. I am a Realtor here in Phoenix. Our market(Maricopa County) is the fastest growing and appreciating market in the country right now. That being said, it has created a market that is ripe for "For Sale by Owners"(FSBO's) I think if you are going to try to be a FSBO, now is the time to do it. Your idea is a good one in my opinion. The people that would be potential FSBO's would love your idea.

As far as your pitfalls, here are my thoughts:

1 - I have no idea about internet/interface junk, so you are on your own.

2 - Signs are dirt cheap. They even make plastic ones now that look the same as the metal. I say go that route. There should be several places in your area that all the agents buy from. Just go there. There will be a one time set up fee and then so much per sign after that. I think my metal ones are only $12-15 each.

3 - Might be difficult to convince people. Keep in mind, you are marketing to a group of do-it-yourselfer's. Maybe take the "lets work together to screw the Realtors" approach.

4 - Get a copy of the contract that Realtors use in your state. It is chock full of "We aren't responsible for anything!" jargon. Just clarify that you are NOT representing sellers and/or buyers. You just create an forum for them to advertise. Buyers and sellers should verify all information.

5 - Who cares if you piss off Realtors(keep in mind, I am one) There is plenty of business to go around. If your little venture cuts into their business, they aren't worth a shit any how.

There will always be a market for do-it-yourself and more recently, discount broker services. It is no different than any other industry. There is do-it-yourself all they way up to full-service.

Some other thoughts, you can get training on doing the virtual walk-thru's yourself. I think they even provide the equipment in some cases. Last I heard, the photographers made about $60 a shoot. No use throwing away $60 if you can keep in in-house.

As far as Realtors using your service, not sure how that would fly. You might be able to take the angle that they could use it as a way to get clients(buyers) as opposed to a way to sell the house. The chances of your system selling the house before the MLS(Multiple Listing Service) is slim to none. However, if a Realtor advertises their listings there, they might get buyers calling them that don't already have an agent. That is really what Realtors want. They want clients. Selling homes is much easier than actually getting clients(Don't tell other Realtors I said that. They might kick me out of their club!) (IMG:http://www.914world.com/bbs2/html/emoticons/biggrin.gif)

Finally, you could even add a 1-800 option to your service. They could pay extra to have a 1-800 number assigned to their house. There is a huge advantage to that. That way they will know who call on their house versus wondering if the kids down the street took all the fliers. I can explain that more if you are interested.

Thats my .02 for now.

[Lou W]

Carl,

My concerns looking at it from the Mortgage side is who would determine the asking price/true market value? most people that want to sell their homes may not have a true sense of values out there. That is the responsiblity of the Real Estate Agent to educate the sellers of reasonable selling prices. When its time to order the appraisal, there are times when we rely on the listing agents to supply "comparable" sales to the Appraisors. If sellers are not getting "good" information regarding pricing, the deal could go sour very quick. Hopefully the Listing Agents have done their homework when it come to market value.

[MoveQik]

(IMG:http://www.914world.com/bbs2/html/emoticons/agree.gif)

However, that is the risk you run when you don't want to use those lying, cheating Realtors. (IMG:http://www.914world.com/bbs2/html/emoticons/biggrin.gif)

Sincerely,

Michael Wills
Realtor Associate
HomeSmart Real Estate

[Qarl]

I was able to determine the sales price of my home in minutes. I walked down the street and picked up the flyer and info sheets on the six homes for sale in my neighborhood.

You can also look up the tax records online here and find your own home. They offer a button for "Find Similar Sales in Subdivision" and it will pull up all the homes that have sold in the past 2 years, including square footage, year built, bedrooms, baths, square footage, etc. Everything you need for a somewhat accuracte comparison..

We had 2 Realtors approach me last year and did complimentary "comp evaluations" for me. Both of them were different and both were under what I sold my house for. Not saying that realtors and appraisers are incompetant, but that homes often sell for what a buyer is willing to spend.

Good ideas, guys... keep the good and bad flowing.

I'm not saying I am going to do this... I jst wanna see if there is enough potential to pursue it.

[drew365]

It always amazes me how one person can make a fortune in a business where others just squeeze out a living. It all comes down to a motivated, creative person that can push it to success. I think your realty idea could be a good one but $150 is way too cheap for a product that will help the owners save tens of thousands.
My customers only started realizing the quality I was giving them after I raised my prices and refused to work cheap.

[MoveQik]

QUOTE (drew365 @ Jun 13 2005, 07:22 PM)

It always amazes me how one person can make a fortune in a business where others just squeeze out a living. It all comes down to a motivated, creative person that can push it to success.

That says it all. I see Realtors in the Phoenix area that are just dying on the vine. They are barley getting by in the hottest market inthe country??? WTF?

[Lou W]

In a quickly changing market similar to what we are seeing here, averaging 30% increase in values in one year, sometimes the tax rolls are not current, some counties are very slow in updating information, In addition, the "house down the street that sold for $?" probably won't reflect any consessions that the seller may have given, such as seller paid closing costs, a flooring allowance, etc. It still goes back to someone advising the seller, the seller can ask anything for a house, the buyer can pay anything for a home, but the lender will require a certified appraisal with supported comps. I think that is an important role for Real Estate Agents. Would you be willing to put up a non-refundable $350.00 plus check for an appraisal on a property that was a FSBO without a Real Estate Agents advice or true value?
Please don't take this as poo pooing an idea, just looking at all the angles. (IMG:http://www.914world.com/bbs2/html/emoticons/smile.gif)

[Lou W]

QUOTE

drew365   Posted on Jun 13 2005, 08:22 PM It always amazes me how one person can make a fortune in a business where others just squeeze out a living. It all comes down to a motivated, creative person that can push it to success. I think your realty idea could be a good one but $150 is way too cheap for a product that will help the owners save tens of thousands. My customers only started realizing the quality I was giving them after I raised my prices and refused to work cheap

Very Good Point (IMG:http://www.914world.com/bbs2/html/emoticons/beerchug.gif)

[MoveQik]

QUOTE (Qarl @ Jun 13 2005, 07:13 PM)

We had 2 Realtors approach me last year and did complimentary "comp evaluations" for me. Both of them were different and both were under what I sold my house for. Not saying that realtors and appraisers are incompetant, but that homes often sell for what a buyer is willing to spend.

I'm surprised that the Realtors were low. Usually they go the opposite direction. Usually they give you a really high price hoping to get your business. The ol' "I could sell this home for $20,000 more than your neighbors house just sold for! Now hire me!"

The shittiest part of being a Realtor is being associated with being a Realtor. We're not ALL bad...I promise. (IMG:http://www.914world.com/bbs2/html/emoticons/biggrin.gif)

The appraisers are always coming in low. They are basing their opinions on history in a market that is going up at historical rates. Sales from 2 months ago are obsolete in our market. I don't blame them. They are just covering themselves. In my last four transactions we have required the buyers to waive the clause that states the house must appraise at the sales price.

Back on topic....I still like your idea. There is a niche for it.

[MoveQik]

Please don't take any of my posts as bashing on Realtors in general. But I'm not an idiot and I know the stigma that is attached to us. I agree with everything that Lou is saying. I have had friends that have tried to be a FSBO. They called me every friggin day asking about what happens next. What if they do this or that? Can they ask for this? It never ended. In the end, they netted less than if they would have just hired me. In addition, it took them longer to sell and it was a major PIA for them. Many will disagree, but good agents are worth every penny. You'll pocket more money and sell it more quickly. Even if you make the same money, you sell it more quickly and you have to do a LOT less work. (IMG:http://www.914world.com/bbs2/html/emoticons/beerchug.gif)

[Lou W]

QUOTE

MW 914   Posted on Jun 13 2005, 08:35 PM QUOTE (Qarl @ Jun 13 2005, 07:13 PM) We had 2 Realtors approach me last year and did complimentary "comp evaluations" for me. Both of them were different and both were under what I sold my house for. Not saying that realtors and appraisers are incompetant, but that homes often sell for what a buyer is willing to spend. I'm surprised that the Realtors were low. Usually they go the opposite direction. Usually they give you a really high price hoping to get your business. The ol' "I could sell this home for $20,000 more than your neighbors house just sold for! Now hire me!" The shittiest part of being a Realtor is being associated with being a Realtor. We're not ALL bad...I promise. biggrin.gif The appraisers are always coming in low. They are basing their opinions on history in a market that is going up at historical rates. Sales from 2 months ago are obsolete in our market. I don't blame them. They are just covering themselves. In my last four transactions we have required the buyers to waive the clause that states the house must appraise at the sales price. Back on topic....I still like your idea. There is a niche for it.

The appraisers get caught in the middle, if they come up with a value that they really can't substaniate (sp)? they can get black listed by the investor. I don't know of any appraisors that won't use real comps supplied to them by the agents, etc. They want the business too. Waiving the value clauses are becoming pretty common now. (IMG:http://www.914world.com/bbs2/html/emoticons/biggrin.gif)

[Lou W]

QUOTE

MW 914   Posted on Jun 13 2005, 08:42 PM Please don't take any of my posts as bashing on Realtors in general. But I'm not an idiot and I know the stigma that is attached to us. I agree with everything that Lou is saying. I have had friends that have tried to be a FSBO. They called me every friggin day asking about what happens next. What if they do this or that? Can they ask for this? It never ended. In the end, they netted less than if they would have just hired me. In addition, it took them longer to sell and it was a major PIA for them. Many will disagree, but good agents are worth every penny. You'll pocket more money and sell it more quickly. Even if you make the same money, you sell it more quickly and you have to do a LOT less work. beerchug.gif

Yea, and don't forget the liabilty (IMG:http://www.914world.com/bbs2/html/emoticons/ohmy.gif)

[MoveQik]

QUOTE (Lou W @ Jun 13 2005, 07:42 PM)

The appraisers get caught in the middle, if they come up with a value that they really can't substaniate (sp)? they can get black listed by the investor. I don't know of any appraisors that won't use real comps supplied to them by the agents, etc. They want the business too. Waiving the value clauses are becoming pretty common now. (IMG:http://www.914world.com/bbs2/html/emoticons/biggrin.gif)

They are totally in the middle. Some seem to have a better grip on the environment that we in, however. (IMG:http://www.914world.com/bbs2/html/emoticons/wink.gif)