Other agents and buyers experiencing these problems?

Question

Hi all! I’m looking for some insight from home buyers and real estate agents on a problem space I’m exploring related to the real estate buying process.

CONTEXT -- It’s predicated on the following hypotheses:

#1: Real estate agents spend a significant amount of time on client interactions with buyers - particularly answering their questions and improving their understanding with regards to contracts/documents on purchases, timelines of transactions, and how real estate processes work overall.

#2: Jargon, bloat, and esoteric concepts in the documents/contracts make it intimidating and daunting for the home buyer to successfully parse them without the time, effort and most importantly trust of their agent. The information asymmetry between the buyer and their agent renders the buyer in position to be easily taken advantage of - as they so often do - which exasperates a lack of assurance and an overall negative experience for the buyer.

#3: Many (moral) real estate agents understand that hypothesis #2 is a real problem and - if given the chance - would want to be able to demonstrate to their clients that they are trustworthy and reliable.

QUESTIONS FOR YOU:

A: Is hypothesis #1 a problem for you? How large is this paint point? If there were a solution that could address this issues, would you pay for it? Do you see a potential business opportunity?

B: Is hypothesis #2 a problem for you? How large is this paint point? If there were a solution that could address this issues, would you pay for it? Do you see a potential business opportunity?

C: Is hypothesis #3 a problem for you? How large is this paint point? If there were a solution that could address this issues, would you pay for it? Do you see a potential business opportunity?

Looking specifically to hear from folks with said experiences in the U.S or Canadian markets, but of course input from anyone is welcomed and appreciated! Thanks :)

Anthony Therrien-Bernard · Answer

This is something you could bring to your local real estate council, in Alberta it would be RECA. I personally feel that our contracts in Alberta are fairly simple as far as contracts go but that's my personal opinion. Legal contracts definitely need a good balance of legal strength and ease of understanding for the average person, it definitely shouldn't be only a licensed Realtor that can understand the purchase contract, most buyers/sellers should be able to understand it as well.

Stevo Sun · Answer

Some companies are trying to tackle the challenges you mentioned. I would look at things like Bode, HonestDoor, etc for Canada. I know both exist in the Calgary market. Also, a realtor is generally licensed in Canada. You can complain to the organization (usually a local real estate association) if you feel the realtor has done something unethical or illegal. This is usually the recourse for any wrongdoing. I have bought a couple of properties with my realtor and done a private deal. I would say the realtor does resolve a lot of hassles for you, but the price is also significant.

Not sure what you had in mind, but happy to chat more! Good luck!

Mohammed Rahman · Answer

Hey @Filip Susic - great questions, it seems as if you're doing some research for a particular business idea you might have. Best of luck. I'm an investor and realtor, here are my thoughts below:

None of these hypothesis are a problem for me because I'm trained in the jargon enough to break it down to my buyers. Although yes, there are still times when my buyers will have questions that *they* think are silly to ask, usually most agents I work with anticipate these questions and have gotten really good at explaining them.

In terms of any jargon in contract documentation... that's something that buyers will rely on their attorneys on most of the time. Sure, if the attorney & the agent are horrible at their jobs, then the buyer will leave with more questions than they started.

However, there's a lot of content out there already explaining any unknown terms to buyers/sellers that are a quick Google search away. I don't really see any real business opportunity here, unless you're thinking of a different way of how you're delivering the information.

Other agents and buyers experiencing these problems?

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