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The online real estate brokerage my partner, Juan Mini, and I launched less than a year ago is growing up. We
recently expanded out of the San Francisco Bay area, where we're headquartered, and now clients can buy and sell houses through us in
Los Angeles, Seattle, and San Diego, Calif., as well. Watching how the process works outside the manic Bay Area environment makes me
realize that we've cut our teeth on one of the hardest markets in the country.
Listen to the experiences of two of our clients, and you'll see what I mean. When my friend Jennifer heard that we
had expanded to San Diego, she decided to buy a house for her parents down there through us. She knows San Diego well but lives in
San Francisco, so our service was the only practical way she could do this for them and keep the shuttling to a minimum. She didn't
mind the fact that we would save her several thousand dollars on fees, either.
Jennifer registered one night. The next day our San Diego agent, Marti, contacted her to discuss the process.
Jennifer's parents wanted a new house, so we pointed her to a few developments. Jennifer checked out their Web sites and headed down
the next Saturday to see them. Our San Diego field agent, Scott, took her around, and she liked one model. Scott registered her with
the builder, Jennifer left a deposit, and come March, her parents will have a new house. The process took a week.
UNORTHODOX MOVES. Compare that to an experience we had recently in the Bay Area. A couple wanted to buy in
San Francisco. After registering and sending in the paperwork, they scanned our direct feed of properties on the Multiple Listing
Service with the help of their online agent, Larry. Within a few weeks, they lined up a pre-approval letter for a mortgage (via the
site) and found a house they wanted. Unfortunately, 10 other buyers wanted it, too. Our clients bid 5% over the asking price but were
still $50,000 short of the winning bid.
Undaunted, they bid on another house. Same problem: too many buyers and not enough inventory here. Finally, they
found a fixer-upper that had been on the market for a while. That should have been a warning sign. With Larry coordinating the
effort, the couple put in the only offer the seller had received in two months. Did he accept? Not in this market. Instead, the
seller's agent and the seller spent a week haggling with us over picky details. We went through six counteroffers before we signed a
contract and put the deposit into escrow.
Meanwhile, the seller's agent started making some unorthodox moves — reducing our commissions for allegedly not
cooperating on inspections, for example. The agent also spent an inordinate amount of time disputing things that had to be done to
close the deal. Larry must have spent 10 hours phoning, faxing, and e-mailing this agent. Meanwhile, a new home came up that the
couple really liked. Larry cautioned them they were taking a big risk making an offer on a second property, but he supported their
decision. This time, the couple beat out five other bidders.
Great. Now, the couple had two homes. Luckily, Larry is an expert at contingency removal. He got the couple back
their entire deposit on the first house — more than $10,000. And our customers got the house they really wanted. People think online
is seamless. Easy money. Just ask Larry how easy it is. I can hardly wait to tackle the New York market. I hear it's a real breeze.
Scott Kucirek is president and co-founder of zipRealty.com, an online real estate brokerage. The
company's Internet site and
online real estate
agents let people complete the entire purchase or sale of a house via the Web. The company's Web site
is www.zipRealty.com, and you can E-mail Scott at Scott@zipRealty.com.
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