With one of the most enviable domain names in the real estate industry, RealEstate.com recently launched its consumer site specializing in such features as property analysis, appraisal, transaction management services, and mortgage auctions. Those in the know are waiting for the other shoe to drop - and it will. By integrating decision-making features with transaction management the site will effectively become a one-stop shop for consumers.

RealEstate.com is already working on adding home listings to its formidable list of offerings which includes the first mortgage auction on the Internet.

Kathy Nunnally, president and vice chairman of RealEstate.com, was mum about who will be providing home searches for the new site. She says, "We're working on relationships and will be making an announcement soon."

RealEstate.com's big win on the site is the Mortgage Auction feature which already boasts several hundred lenders. Consumers put in their criteria for a loan and lenders bid on the loan, with the lowest bidder "winning" the right to originate the loan. Lenders are anxious to participate because they don't pay anything until they are chosen as the "lowest" bidder.

"The interesting thing about our position is the fact that we don't represent a specific lender," explains Nunnally. "We are very independent and we have an objectivity that is making people very comfortable."

"I was intrigued with the business model of RealEstate.com. It's free to consumers and our revenues are driven on the business-to-business side. Services are either being sponsored or in the case of Mortgage Auction, the lender is paying for those benefits," she says.

People used to having property analysis done by Resicom will quickly learn that Resicom has morphed into the Property Analysis feature on RealEstate.com. Consumers find a number of reports that can be used in the decision-making process. The reports include such qualifiers as equity analysis, neighborhood analysis, economic trends, and these are all free to consumer.

"There is a higher degree of sophistication and data analysis on the commercial side of real estate. We tried to bring that sophistication to the residential arena. Buying might be highly emotional for a consumer, but with Property Analysis, they can step away from the emotion and take a hard look at the investment potential."

Where do real estate agents fit in? Real estate agents are embracing the reports as they seek to add content for their Web pages, explains Nunnally. "We placed the Property Analysis banner on the agent's pages, so when the leads come to us, it becomes a referral for the agent."

"In six months, one agent generated 31 leads that resulting in closings," says Nunnally.

Does RealEstate.com have comparables? "We have comparable data that feeds into the appraisal model and some desktop appraisal for Freddie Mac. There are a number of valuation products," replies Nunnally.

Currently, RealEstate.com does not have a consumer interface for appraisal and closing services, (formally Equitran,) but the site is working toward that as a goal. Lenders in the client base can submit orders for what they need - appraisals, inspections, titles, flood insurance, or other services. A document review feature allows lenders to look a the appraisal on-line through a secured entryway.

Next is on-line transaction management, with service providers signing up through a vendor portal which operates much like an Intranet. "It's as close to a paperless office as you can get," explains Nunnally.

Although RealEstate.com manages the appraisal and closing services, there is still plenty of room for the agent to pick and choose the services they want to manage their transactions. "People can jump in and out and use the full suite of products or they can come in selectively and use specific products."

"Ultimately what we hope to see is that the tools well be able to shorten the cycle on a real estate transaction," says Nunnally.

RealEstate.com is working on the consumer interface, and anticipates that the consumer will soon be able to review loan documents and other service providers' documents on line.

Published: April 27, 1999

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