Industry
Profile
 Real
estate is both one of the largest and one of the oldest
industries in the United States. Each year, over 5-7 million
homes are sold and that number continues to grow. In the
past 20 years, a new resource has emerged to assist owners
and real estate advertising companies in marketing and
selling real estate.
The internet.
Since
1995 the number of home shoppers looking online for real
estate has dramatically and continually increased. However,
the ability of the real estate advertising industry to
capitalize on this has been limited.
The
real estate industry in its current form has two main
problems:
-
It
is Fragmented (hard
to find buyers and sellers)
- and
thus Expensive (to
advertise and produce sufficient results for advertising
companies)
This
is not to say that you cannot find buyer or sellers or
that you cannot find them in large number. This is simply
to say that the market continually fails to reach a point
of equilibrium because of the lack of readily
available and easily accessible information in
regards to what is for sale in the real estate market.
The problem is that there are too many incomplete resources
for advertising what is for sale. To find a full list
is virtually impossible for a buyer. The Internet has
enabled other industries to solve similar problems but
has yet to help much in the real estate industry.
There
are 3 primary reasons the internet has not yet fixed this
problem:
1.
A partial solution already exists
As described
in the overview section (also see below),
the MLS partially solves the problem of a fragmented system.
Because of this, there is not as much motivation or need
for a better system to be created. The MLS has 3 main problems:
1) Each part of the MLS is operated seperately and there
is no way to get access to all of the homes in each MLS
easily. 2) It does not allow all homes for sale access (i.e.
FSBO's, forclosures, etc.) and 3) It is expensive to use.
But this still leaves the industry a fragmented market and
an expensive way to do business. An independent survey shows
that most buyers would like to see more real estate online,
and are unsatisfied with their ability to find it.
| 1.
With over 1000 real estate marketing sites online,
home buyers must first find, then visit, a large number
of sites to view all the real estate in their area |
|
2.
As a partial solution, agents have created a system
where a home buyer may visit one real estate agent
(any agent) and locate any piece of real estate by
any agent, through the massive MLS database |
|
3.
The HomeNet is a complete solution to the problem.
It provides a network that is open to all real estate
websites and an easy place for buyers to search ALL
the available real estate from the comfort of their
own home. |
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|
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|
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2.
High development cost
Even
with all the great advances of the internet, the cost to
develop a CENTRAL PORTAL is still costly. That is why the
HomeNet instead seeks to create THOUSANDS of mini portals
all acessing the same data. This allows all consumers to
find all homes regardless of how they search. This cuts
down on the cost, and has created a very viable option.
3.
No company has developed a sustainable model to
fix the problem (till now)
Although
the technolgy exists and the help of the internet is available,
no company has been able to develop and implement a model
that allows people to easily find all of the real estate
available online. At least until now. The HomeNet is a
proven model that once fully implemented will make the
real estate market efficient and unified.
The HomeNet™ is the only available
solution to the problem. To learn how, go to the "How
It Works" section.
*
all information and statistics on this page came from
the
National Association of Realtors, other organizations
and/or independent studies
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