Saturday, October 23, 1999
Houses for sale on 'Net
New Web site has local listings
BY JEFF McKINNEY
The Cincinnati Enquirer
When Vincent Broerman wanted to buy stock three years ago, he would manually search for data about a company, then choose from the hundreds of stockbrokers to do the transaction.
But today, Mr. Broerman simplifies that process by researching and buying his shares on the Internet, saving him as much as $190 a trade.
Mr. Broerman and nine other investors decided to do the same for house buying.
They launched HomesThatClick.com, an interactive online real estate service that allows people to buy and sell homes on the Web without the aid of a traditional agent.
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FEATURES
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• A way of finding houses for sale from your home at any time.
• Searchable database of all listings on HomeThatClick.com.
• Personal Agents That Click profiles to search for newly listed homes meeting your requirements.
• Online mortgage calculators.
• Information for school districts; neighborhood maps.
Planned services:
• Online mortgage applications.
• Home appraisals and competitive market analysis.
• Environmental inspections.
• Home inspections.
• Insect inspections.
• Title insurance.
• Title research.
• Survey work.
• Closing representation.
• Property insurance after closing.
• Mortgage life insurance.
• Moving services.
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More important, the owners of HomesThatClick say their service charges 2 percent of a home's sale price as commission, vs. the 5 percent to 7 percent that a Realtor charges.
The Internet service that opened Monday already is taking a bite out of the $2.85 billion residential real estate market in Greater Cincinnati, with $22 million in listings today.
Eventually, the owners hope to expand nationally.
The new service likely will not get any endorsements from the Cincinnati Area Board of Realtors, which dominates the local housing market and consists of real estate companies that sell and buy houses the conventional way.
But Mr. Broerman is confident that HomesThatClick can serve a niche. Its customers would prefer to buy or sell houses themselves, want to pay less in commissions and don't mind using the Internet to market or find houses for sale.
HomesThatClick works as a seller's agent on the Internet instead of a person handling that process. Its services include an online list of available houses, including access to the Multiple Listing Service and scheduling appointments.
It also features Agents That Click, which includes licensed real estate agents to answer questions during the selling, contract negotiations and marketing process.
Mr. Broerman said 20 percent of the U.S. population tries to sell houses themselves. And he said 15 percent to 20 percent of those are successful. Homes
ThatClick wants to serve sellers who need help selling their houses, as well people who want an alternative for buying or selling.
“Consumers now have a choice for what services they want in the home-selling process, how much they want to pay and what additional services they may or may not want,” Mr. Broerman said.
Mr. Broerman, an information technology consulting whiz, also recruited some respected real estate types as investors. They include Will Schwartz, former senior vice president of Prudential Capital Corp. and chief executive of Prudential Real Estate Affiliates. Another partner: Norm Miller, a director of the University of Cincinnati's real estate program and national expert on such issues.
The new service is not without critics.
Mike West, president of Mike West Realtors in Forest Park, called HomesThatClick a “flawed process,” saying it uses technology to replace a live agent or broker.
He said Realtors are often needed to explain to clients key things such as how they should apply for mortgages, how contracts should be written, what home inspections should include, and what inventory or other sources to check before making a decision.
“When you have a buyer trying to buy that first home or a seller trying to sell their first or second home, the process is not as easy as it sounds,” Mr. West said.
He said another potential flaw is that HomesThat
Click's main source of marketing houses will be on the Web, potentially eliminating a large segment of buyers who also search for houses through another medium.
Mr. West also said most real estate agents who command commissions of 5 percent to 7 percent likely won't be as aggressive listing homes through a service that pays 2 percent.
“You cannot charge a little, offer a few services and expect to get the return (best price) you're paying for,” Mr. West said.
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