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INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip INVESTING Investing: Europe Annual Reports BW 50 S&P Picks & Pans Stock Screeners Free S&P Stock Report SCOREBOARDS Hot Growth 100 Mutual Funds Info Tech 100 S&P 500 B-SCHOOLS Undergrad Programs MBA Blogs MBA Profiles MBA Rankings Who's Hiring Grads | JANUARY 21, 2000 NET JOURNAL By Scott Kucirek Internet Commerce Is Easy Money and Other Fables Selling real estate can be a cinch in one city, full of hassles in another. Being online doesn't necessarily change that
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. | |