An online "homework" referral site, Improvenet.com, is beginning to make its presence known in the real estate industry, attempting to become a bridge for consumers between their real estate agents and builders, contractors and repair companies.

ImproveNet already has gained the attention of Coldwell Banker and HomeGain.com. This week it announced a new agreement with Owners.com, the nation's largest For Sale By Owner Web site.

The theory behind ImproveNet is that homeowners who are getting ready to move out (and homebuyers who have only recently moved in), often have things they want changed in their homes but don't know who to call to get the work done.

Often they end up contacting their real estate agents for referrals.

Those licensees, however, historically have been reluctant to make specific referrals, fearing liability problems. Passing customers on to ImproveNet, however, takes away that liability while still sending consumers in the right direction.

ImproveNet helps homeowners find reliable contractors, designers and architects who are licensed or bonded. The company keep records to make sure vendor documents are up to date.

ImproveNet says it has processed more than $2 billion in remodeling projects during the last 18 months and anticipates doing far more volume as more real estate companies begin referring their clients and customers to it to help them with improve projects.

"New homeowners spend an average of nearly $5,000 shortly after the purchase, and trade-up buyers spend the most on remodeling within the fist 24 months after purchasing a home," the company said.

A company spokesman said ImproveNet already was working with Coldwell Banker's new Concierge service that assists home buyers with a variety of services -- including referrals to contractors, landscapers and others. "Our role is to lead the homeowner to a company that is certified and licensed."

With Owners.com, a FSBO site with some 25,000 listings, the agreement calls on ImproveNet to offer a broad selection of services and information inside the site's "Home Improvement" channel.

The co-branded content will help Owners.com visitors find reliable remodeling contractors, view home design ideas, and visit product showcases.

Owners.com will launch its Home Improvement channel in early August. The new channel also will feature a range of household products and services, such as hardware supplies, home equity lines of credit, and house and garden furnishings, with ImproveNet being an anchor sponsor of the content area.

Consumers are not charged for access to the referral network. Eligible contractors, however, do pay a subscription type charge to belong to the network.

ImproveNet is based in Redwood City, Calif.

Published: July 16, 1999

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