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ListedBy auction tool focuses on transparency, disruption

The real estate auction space has some hiccups that ListedBy is seeking to iron out with their offering, focusing on transparency, which ultimately has disrupted the sector.

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ListedBy on a mission to shake things up

ListedBy is known in the real estate industry for their role as a free online marketplace and social network with live bidding auction functionality targeted towards real estate assets and real estate related professionals. But what some people don’t know is that while their business model is one focused on transparency and disruption, their auction tool is most poised to shake up the sector.

The real estate auction space is quite traditional, and dare we assert, it is mildly behind the times. ListedBy is doing their part, going head to head with hudhomestore, auction.com, bid4assets, realtybid, and others.

The company tells us they disrupt the real estate auction space in three key ways – cost, transparency, and 100% online.

ListedBy has a different pricing model

Because the site is free for buyers and sellers, rather relies on advertising, the company says it leads to more participation by Realtors and consumers, and more money in buyer pockets, as compared to 2-10 percent buyer premiums competitors require. Traditional auction sites charge anything from registration fees, listing fees, bidding fees, to the most common – a fee the buyer pays when they’ve won an auction.

Buyer’s penalty or buyer’s premium is what a buyer typically pays when they’ve won an auction, costing 2-10 percent, so a $200,000 property costs the buyer an additional $4,000 to $40,000. The company tells us they circumvent that, as these fees tend to hold buyers back, compromises the seller, and “Holds dollars away from being used to move the inventory. If the buyer knew they had that extra 4-40K to put towards the property, the chances of the asset getting sold increase significantly.”

Adding transparency to a legacy industry

In a statement to AGBeat, ListedBy said, “In an environment where a bidder does not know who is bidding, does not have visibility to all those bidding, where the bids are at or who won, there is virtually no way to know that the process is trustworthy and fair. Lack of visibility may also compromise the ultimate value of the property.”

They allow everyone to see who is bidding and how much, giving everyone an equal chance and optimizing the property market value.

Taking the process completely online

ListedBy takes the auction process completely online which they say is faster, less expensive, and more efficient. “An online avenue does away with the added effort, inconvenience, resources and expenses needed to organize and run a physical, on-location auction on site at the subject property.”

The company points out that in some cases, auctioneers hold online and offline auctions simultaneously on a property, which can lead to a disconnect and certainly falls short on transparency.

The takeway

The company is growing their offering, but the auction space is in dire need of innovation, so shifting the cost model, transparency, and putting it all online could put a dent in how the auction space operates.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you’d like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

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Austin

Austin tops the list of best places to buy a home

When looking to buy a home, taking the long view is important before making such a huge investment – where are the best places to make that commitment?

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Looking at the bigger picture

(REALUOSO.COM) – Let us first express that although we are completely biased about Texas (we’re headquartered here, I personally grew up here), the data is not – Texas is the best. That’s a scientific fact. There’s a running joke in Austin that if there is a list of “best places to [anything],” we’re on it, and the joke causes eye rolls instead of humility (we’re sore winners and sore losers in this town).

That said, SelfStorage.com dug into the data and determined that the top 12 places to buy a home are currently Texas and North Carolina (and Portland, I guess you’re okay too or whatever).

They examined the nerdiest of numbers from the compound annual growth rate in inflation-adjusted GDP to cost premium, affordability, taxes, job growth, and housing availability.

“Buying a house is a big decision and a big commitment,” the company notes. “Although U.S. home prices have risen in the long term, the last decade has shown that path is sometimes full of twists, turns, dizzying heights and steep, abrupt falls. Today, home prices are stabilizing and increasing in most areas of the U.S.”

Click here to continue reading the list of the 12 best places to buy a home…

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Housing News

Average age of houses on the rise, so is it now better or worse to buy new?

With aging housing in America, are first-time buyers better off buying new or existing homes? The average age of a home is rising, as is the price of new housing, so a shift could be upon us.

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The average home age is higher than ever

(REALUOSO.COM) – In a survey from the Department of Housing and Urban Development American Housing Survey (AHS), the median age of homes in the United States was 35 years old. In Texas, homes are a bit younger with the median age between 19 – 29 years. The northeast has the oldest homes, with the median age between 50 – 61 years. In 1985, the median age of a home was only 23 years.

With more houses around 40 years old, the National Association of Realtors asserts that homeowners will have to undertake remodeling and renovation projects before selling unless the home is sold as-is, in which case the buyer will be responsible to update their new residence. Even homeowners who aren’t selling will need to consider remodeling for structural and aesthetic reasons.

Prices of new homes on the rise

Newer homes cost more than they used to. The price differential between new homes and older homes has increased from 10 percent traditionally to around 37 percent in 2014. This is due to rising construction costs, scarcity of lots, and a low inventory of new homes that doesn’t meet the demand.

Click here to continue reading this story…

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Housing News

Are Realtors the real loser in the fight between Zillow Group and Move, Inc.?

The last year has been one of dramatic and rapid change in the real estate tech sector, but Realtors are vulnerable, and we’re worried.

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Why Realtors are vulnerable to these rapid changes

(REALUOSO.COM) – Corporate warfare demands headlines in every industry, but in the real estate tech sector, a storm has been brewing for years, which in the last year has come to a head. Zillow Group and Move, Inc. (which is owned by News Corp. and operates ListHub, Realtor.com, TopProducer, and other brands) have been competing for a decade now, and the race has appeared to be an aggressive yet polite boxing match. Last year, the gloves came off, and now, they’ve drawn swords and appear to want blood.

Note: We’ll let you decide which company plays which role in the image above.

So how then, does any of this make Realtors the victims of this sword fight? Let’s get everyone up to speed, and then we’ll discuss.

1. Zillow poaches top talent, Move/NAR sues

It all started last year when the gloves came off – Move’s Chief Strategy Officer (who was also Realtor.com’s President), Errol Samuelson jumped ship and joined Zillow on the same day he phoned in his resignation without notice. He left under questionable circumstances, which has led to a lengthy legal battle (wherein Move and NAR have sued Zillow and Samuelson over allegations of breach of contract, breach of fiduciary duty, and misappropriation of trade secrets), with the most recent motion being for contempt, which a judge granted to Move/NAR after the mysterious “Samuelson Memo” surfaced.

Salt was added to the wound when Move awarded Samuelson’s job to Move veteran, Curt Beardsley, who days after Samuelson left, also defected to Zillow. This too led to a lawsuit, with allegations including breach of contract, violation of corporations code, illegal dumping of stocks, and Move has sought restitution. These charges are extremely serious, but demanded slightly less attention than the ongoing lawsuit against Samuelson.

2. Two major media brands emerge

Last fall, the News Corp. acquisition of Move, Inc. was given the green light by the feds, and this month, Zillow finalized their acquisition of Trulia.

…Click here to continue reading this story…

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