This blog is for those startups who want to embark on developing real estate apps. Let’s check out the top lessons from Door, Inc. (Dallas-based real estate brokerage startup firm).
The real-estate industry has already occupied a prominent place on the mobile applications and websites. However, there are a lot of opinions that real estate apps and their tools may replace the agents and brokers completely.
Being a real-estate agent, it may sound quite disturbing, but who have already gone digital, there is an abundance of opportunities in the niche of real estate. On the other hand, real estate app development is something, which realtors can invest in to keep pace with the time.
The Traditional Process of Real Estate Industry
For the majority of people, finding the house is one of the major challenges and biggest purchases in their lives. However, it is an expensive affair and complicated process too.
Here is the traditional way how real estate brokers are getting paid:
- The broker on each side of the deal takes, on average, 3% of the selling price of the home. For instance, if the house sells for $500,000, the broker collectively takes $30,000 from both buyers and sellers off the table for themselves.
- There is no wonder that the craze of real estate app development is already high. So, this post will shed some light on the latest trends in the mobile US real estate marketplace.
Insights: The Key Statistics on U.S. Real Estate Market
The United States has made a drastic change and the statistics of the U.S market are quite fascinating. Let’s check out the growth of the real estate market in U.S.
- The U.S housing market has regained its momentum: As per the same report, “Mobile apps are used by 68% of new home shoppers throughout research of homes”.
- San Jose is the nation’s hottest housing market in 2018: As per the report from Zillow, “San Jose’s median home value of $1.13 million is expected to grow by 8.9% in 2018”. On the other hand, Dallas is among the top 10 cities in the U.S, and the real estate market growth will be 4.7% in Dallas.
- Forecast: Talking about the revenue of real estate property management in the United States from 2009 to 2020. By 2020, the revenues of real estate property management in the U.S are projected to reach approximately 70.028 billion U.S dollars.
- According to NAR (National Association of Realtors) that has long been a gatekeeper of housing information is seeing a real challenge from mobile and web real estate search tools.
- As per the report from NAR, “90% of homebuyers did an online search when looking for real estate”. Simultaneously, mobile is complementing this broad shift in the balance of power among sellers, home seekers, and their intermediaries.
Before jumping to lessons for startups, let’s know more about the real estate brokerage startup firm, Door.
Door, Inc. – The Real Estate Brokerage Startup Firm
There is no shortage of competition in the housing space, but Door, Inc. is making a dent in real estate. Door, Inc. is a Texas-based residential real estate brokerage, allowing users to buy and sell a home by saving huge brokerage fees.
Moreover, the company builds a tech-enabled real estate brokerage firm, which aims to change the traditional way of buying and selling process of homes by charging a flat $5,000 fee to either the buyer or seller for the transaction.
According to the report, “Dallas-based company, Door, Inc. closed the final chunk of an approximately $12 million Series A round that was raised in multiple tranches”. Even more, the company has only raised a small chunk of its capital from traditional VCs, including a $500,000 Series A check from Picus Capital, a German Venture fund started by Rocket Internet co-founder Alexander Samwer.
The lead investor in Door’s round, Court Westcott is a Dallas-based investor and the son of Carl Westcott, a prominent entrepreneur in the area who founded 1-800-FLOWERS, among other ventures.
Image Source: Door Inc.
Important Lessons That Startups Can Learn From Door, Inc.
1. Leverages Technology to Sell or Buy Homes
The tech-enabled real estate brokerage firm, Door, Inc. has taken the real-estate market to the next level. The company aimed to change the world of real-estate brokerage by charging a flat $5,000 fee to either the buyer or seller for the transaction.
The real-estate company, Door has believed that 6% (3% on the buy side, 3% on the sell side) was the traditional commission structure for selling and buying from the days before the internet and the company has completely changed from today’s reality.
However, Door, Inc. is categorized as the next-generation real estate transaction platform that leverages technology to provide services to home buyers and sellers. Also, the startup company has provided solutions for both sellers and buyers.
So, being a real estate startup, if you want to provide a solution in terms of a mobile app to your users, then you need to start to leverage technology solutions, helping people in selling or buying homes as what Door is doing.
2. Broken Up The Traditional & Excessively High Commission Structure
Buying a home can be complicated. Throughout the process of home buying, there are many eventualities, which can have a negative impact on home buying experience. However, Door has simplified it as much as possible in the favor of home seekers. The next important lesson, which startups can take from Door is the company has completely transformed the way people were finding and buying a home earlier.
Real estate agents are no longer the gatekeepers between sellers and buyers, and there is no need to pay extremely high commissions to sell or buy a home. However, the real-estate startup company, Door has brought a wind of change in the niche of real-estate. Moreover, the solution is based on resolving the real-life problems of home seekers. Thus, an ideal real estate mobile app must provide aforesaid solutions to home seekers, by reducing the amount of commission.
Buyer’s Side: Talking about the buyer’s side, then you can consider following attributes for creating apps like Zillow (leading real estate marketplace) or Door such as find a home, schedule to see selected homes, no commissions, and cash back.
Seller’s Side: It includes the features like market analysis, home valuation at free of cost, and full-fledged service listings like capture photographs, craft a 3D model, and install a yard sign and lockbox.
However, all these attributes can be considered when it comes to real estate mobile app development.
Do You Have a Real Estate App Idea that Could Take the Industry by Storm?
With emerging tech platforms in the real-estate industry, the traditional process of buying and selling homes has been transformed, making it spontaneous. The real estate startup company, Door hit the marketplace with advanced solutions.
Well, the aforesaid lessons are those on which startups need to pay attention while building their own real estate mobile app. If you have an idea of real estate app like opendoor, which you think can change the process of buying and selling homes, you can get in touch with us through the below-given form as we are a leading mobile app development company and have an experience of developing over 40 real estate mobile apps.
This page was last edited on April 24th, 2020, at 10:04.