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![Large Opportunity
• 2013 US Real Estate Advertising Spending : $27.3B
(+9.7% from 2012) [2013 Real Estate Advertising Outlook from Borrell Associates, Inc.]
– $9.1B spent on Residential Advertisement (Zillow Est)
– Technology penetration is still early and low
• Zillow + Trulia annual revenue < $500M
• Large Adjacent Markets
– Annual Marketing spend for Mortgage & Home
Improvement is more than $20billion (source Zillow)
• Technologies and customer expectation are ripe to
force disruption
– Real estate consumers expect to be connected in real
time for all aspects of real estate activities
– 90%* of real estate search starts on the internet
7/30/2016 OfferBinder - Confidential 2014
* Source: http://www.realtor.org/reports/highlights-from-the-2013-profile-of-home-buyers-and-sellers](https://image.slidesharecdn.com/offerbinderpitch-160730232408/85/Offerbinder-pitch-6-320.jpg)
Uploaded byConrad Kong
Offerbinder pitch
This document provides an overview of OfferBinder, a platform that aims to organize the real estate offer negotiation process in the cloud. It discusses the fragmented nature of the current real estate process, lack of transparency, and ineffective marketing solutions. OfferBinder's solution brings transparency to negotiations through a customizable cloud-based platform. It also collects and analyzes offer data to provide targeted leads and marketing through an industry-first analytics engine. The target customers are real estate agents, brokers, home buyers and sellers. The document outlines the go-to-market strategy and competitive advantages, including being the only source of offer data and enabling agents to differentiate through real-time offer insights.
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Offerbinder pitch
- 1. OfferBinder Make Better RealEstate Decisions 7/30/2016 OfferBinder - Confidential 2014
- 2. Overview • About us •Market Opportunity • Challenge • Solution • Target customers • Go-to-Market • Business • Current Status & Roadmap • Summary 7/30/2016 OfferBinder - Confidential 2014
- 3. OfferBinder – Aboutus: • Ben Yip: Co-Founder – Senior Director and Architect at SuccessFactors, an SAP company • Founding engineer at SuccessFactors, acquired by SAP in 2012 • Conrad Kong: Co-Founder – Senior engineering and management roles at Xilinx, Synopsys • Seasoned software professional with multiple successful startups • Karl Lee: Advisor – Broker/Owner, Realty World Results Pros – MLS Listings, Inc/Director – Treasurer 7/30/2016 OfferBinder - Confidential 2014
- 4. OfferBinder – OurMission • Enable free flowing of information in real estate transaction; helping everyone make better decisions 7/30/2016 OfferBinder - Confidential 2014
- 5. Why Real Estate? 7/30/2016OfferBinder - Confidential 2014 0 0.5 1 1.5 2 Purchase & Sale Home Financing Home Maintenance & Improvement Total Revenue ($ Trillions) Total Revenue ($T) Source: Zillow Annual Report, 2013 Large Opportunity in an underserved market still primed for online disruption 0 2 4 6 8 10 12 Purchase & Sale Home Financing Home Maintenance & Improvement Advertising Revenue ($ Billions) Advertising Spend ($B)
- 6. Large Opportunity • 2013US Real Estate Advertising Spending : $27.3B (+9.7% from 2012) [2013 Real Estate Advertising Outlook from Borrell Associates, Inc.] – $9.1B spent on Residential Advertisement (Zillow Est) – Technology penetration is still early and low • Zillow + Trulia annual revenue < $500M • Large Adjacent Markets – Annual Marketing spend for Mortgage & Home Improvement is more than $20billion (source Zillow) • Technologies and customer expectation are ripe to force disruption – Real estate consumers expect to be connected in real time for all aspects of real estate activities – 90%* of real estate search starts on the internet 7/30/2016 OfferBinder - Confidential 2014 * Source: http://www.realtor.org/reports/highlights-from-the-2013-profile-of-home-buyers-and-sellers
- 7. Current Industry Challenges •Real Estate End-to-End Process is fragmented – Lack of organization and transparency to consumers – Loss of valuable offer negotiation data means lost business opportunity to agents • Existing Marketing Solutions are Expensive and Ineffective – 15-20% of active agent’s income spent on marketing – Leads from print flyer’s and internet account for less than 7*% of total sales • Agents have every few tools to differentiate – Agents websites and listing data no longer compelling – MLS provides 400 characters to describe a property 7/30/2016 OfferBinder - Confidential 2014 * Source: http://www.realtor.org/reports/highlights-from-the-2013-profile-of-home-buyers-and-sellers
- 8. Current Real Estate“Cloud” Fragmented and distributed 7/30/2016 OfferBinder - Confidential 2014 Buyer Agent Buyer Buyer Buyer agent Buyer Agent Buyer Listing Agent Seller During Offer Negotiation
- 9. Current Real Estate“Cloud” Fragmented and distributed 7/30/2016 OfferBinder - Confidential 2014 Buyer Agent Buyer Buyer Buyer agent Buyer Agent Buyer Listing Agent Seller Winner After Offer Negotiation: Cloud gets Cold!
- 10. OfferBinder – OurSolution • We organize offer negotiation process in the cloud: – Flexible and fully-customizable negotiation format • Conventional Sale, Open Bid and True Sealed Bid sale – Bring transparency and enable legal compliance – Everything still governed by conventional industry practices • First to collect, analyze and bring active & past Offer Negotiation Data to the PUBLIC • Enables agents to provide live updates and custom contents – Keep potential buyers interested before they submit offers – As marketing materials to generate new leads after the listing is sold • Making a leap with Effective & Targeted Marketing – Industry’s first analytic engine that combines offer negotiation data with listing data – Provide the MOST up-to-date heat map of the market – Clearly identify people who are ready to buy/sell; Better leads!!! 7/30/2016 OfferBinder - Confidential 2014
- 11. Listings Agent “Cloud”: emails,VMs, offers and listings documents in laptops, cloud storage and file cabinets OfferBinder Cloud 7/30/2016 OfferBinder - Confidential 2014 Seller OfferBinder Cloud Offer Negotiation During Offer Negotiation Buyer Agent Buyer Agent Buyer Agent Buyer Buyer Buyer Listing Agent Analytic s Analytic s
- 12. After Offer Negotiation:Cloud gets HOT! Listings Agent “Cloud”: emails, VMs, offers and listings documents in laptops, cloud storage and file cabinets OfferBinder Cloud Leverage Information for Better Decisions 7/30/2016 OfferBinder - Confidential 2014 Potential Buyers Potential Sellers OfferBinder Cloud Marketing & Lead Generation using Analytics Leads Leads Leads Leads Buyer Agent Buyer Agent Buyer Agent Listing Agent Buyer Buyer Buyer Seller Other Agents Other Agents MKT MKT MKT MKT
- 13. How do agentsuse OfferBinder? • Use OfferBinder to provide extra contents and live listing updates before offers come in – Provide exclusive contents and updates to increase buyer’s interests – Use it as marketing materials during open house to engage clients after they leave the property – Leads generated from this have much higher conversion rate • Use OfferBinder to negotiate and present offers to seller – Accept/Decline/Counter/Docs/Emails/Notifications • Use OfferBinder After the house is sold – Everyone wants to see offer data; that is what brings in new clients. Agents should use their sold listings to keep working for them!!! – More contents can be added after sale to keep clients coming back • OfferBinder also helps buyer’s agents – Our real time OfferStrength calculator helps buyer’s agents make better offers • OfferBinder helps everyone to make better decision – Industry’s first analytic engine that combines offer and listing data 7/30/2016 OfferBinder - Confidential 2014
- 14. 7/30/2016 OfferBinder -Confidential 2014 Target Customers Home Buyers & Sellers -Offer Information -Research for agents Agents & Brokers -Manage Offer and negotiate -Marketing and Lead Generation Mortgage & Financial Services -Leads Home Improvement -Leads
- 15. Available customers • ActiveAgents & marketing spending: – Est. 20% of realtors does 80% of the transactions (broker’s est) – Top producing agents spend $4-$5K per month on marketing – Zillow has 57K premier agents; spending ~$320/m (Q2/14)* – Trulia has 74K paying agents; spending ~$200/m (Q2/14)* • Active Agents Technology Spending (source Trulia) – $75 website, $75 CRM, $37 paperless transaction (per month) – $35 CMA, $53 Email & Print Marketing SW (per month) 7/30/2016 OfferBinder – Confidential 2014 0.17 0.4 1.1 2.1 0.00 2.00 NAR Membership (Realtors) # of agents and brokers Million (*source NAR) National CA 90 600 5000 K 2000 K 4000 K 6000 K # of transactions National CA Bayarea Thousand
- 16. Go-to-Market • Bottom-up: Built-inviral effect – One hot listing can generate 100 users and agents to sign up through listing documents alone – Every listing also attracts new buyer’s agents to use OfferBinder to manage their listings next time they list properties – As Open houses marketing tools: we can reach a lot of potential buyers/sellers for free – Encourage listing agents to promote (other channels) • Top-down approach: MLS/NAR/Large broker – MLS and NAR to sell to large brokers 7/30/2016 OfferBinder - Confidential 2014
- 17. Growing our customersbase • Offer Data is compelling, everyone wants to see it • Every open house is a marketing opportunity for us • Our own Analytics engine can identify our potential customers – Top listing agents/brokers in the area and all open houses – Use Sold/Asking price ratio to identify listings with multiple offers – Use MLS data to identify agents who are relatively new to the business and ready to go to the next level 7/30/2016 OfferBinder - Confidential 2014
- 18. Market Adoption Challenge •Overcoming following concerns of Listing Agents – Reluctance to adopt latest technology – Perceived de-emphasis of agents human touch – Clinging to opacity as perceived business edge – Privacy concerns to sharing offer data • Distributed nature of MLS agencies – Agents are independent minded contractors – No technology mandates coming from NAR, MLS or Brokers – Different MLS might have different rules and regulations 7/30/2016 OfferBinder - Confidential 2014
- 19. Competitive Advantage • OfferBinderis the only source for offer data • OfferBinder is the only platform that enables agents to translate their offer data into market differentiation • OfferBinder can generate much better leads • OfferBinder game-changing analytics engine provides the most accurate heat-map of the market because we have real-time offer data 7/30/2016 OfferBinder - Confidential 2014
- 20. Customer feedback: • “Iget it and I understand this is the new way to do business” –almost eveyone says it. • “When can I start using it?” - An agent with average amount of business – “It is a productivity boost and this technology allows me to differentiate from other listing agents” – “I can imagine using this tool to check the offer status every time I take a client to see a new property” • “Other agents don’t believe their offers are sealed, I need to a way to prove to other agents I do things fairly” – One of the top listings agents in the country • “I will not use your tool because it deemphasize agent’s role and makes it like buying stuff from Amazon. But I really like the marketing and leads generation aspects of your offering” – A traditional agent who get most business from referral • “I will use it if you can show to me that I am getting more business”- an up- and-coming agent who wants to go from 50 deals/yr to 100 deals/yr 7/30/2016 OfferBinder - Confidential 2014
- 21. Demo • Offer Management •Open House Marketing Tool • Analytics 7/30/2016 OfferBinder - Confidential 2014
- 22. • Spencer Rascoff,Zillow CEO “I believe that eventually most of the $10 billion a year that agents spend to market themselves and their listings will move online, and most of it will be spent on whichever online service has the largest audience.” 7/30/2016 OfferBinder - Confidential 2014
- 23. Summary • What makesOfferBinder special? • For the first time ever: – Real Estate Agents can manage and negotiate offers in the cloud; – Buyers and sellers can see offer details during and after negotiation – Industry-first analytics platform that combines listings and offer data – Agents can get more business while saving time 7/30/2016 OfferBinder - Confidential 2014
Editor's Notes
- #3 Challenge Real Estate – current state is fragmented and valuable offer data is not being collected and leveraged Ad spending large, yet existing solutions are ineffective Solution Cloud based offer negotiation Combine Offer and listing data to generate better leads Defensible strategy through network effect
- #4 *** = additional notes *** OfferBinder Team has proven track record in bringing technology to the market. Ben is the founding engineer of Successfactors. They pioneered the human talent management industry and their cloud platform managed the highly performance review data for many Fortune 500 companies. Conrad is a seasoned software professional who was involved in many sucessful startups. He specializes in large-scale algorithms optimization and has a very keen sense in real estates.
- #10 Tells a story!!!! And example!
- #11 This data can be harvested many different ways!!!! Best-in-class Offer Management and Negotiation in the cloud: *** Agents can Submit/Receive/Counter Offers; *** We also manage Documents and all communications between clients/agents Every deal is different; everything we do is fully customizable *** OfferBinder Enables technology to play a role without losing the human factors in negotiation Streamline process: *** Connect ALL parties in REAL time, no more request for status updates. Support the latest computing and mobile devices *** iOS, windows, andriod etc… Everything is still governed by conventional industry practices *** No new law or regulation required OfferBinder collects, analyzes and shares active and past offer negotiation data Data transparency builds trust, confidence and mitigates risk; helps agents to avoid costly lawsuits OfferBinder will be the first to bring offer negotiation data to the public Use offer negotiation and listings data to generate new leads for agents; just like Zillow using listing data to generate leads Industry-first analytic engine that combines offer negotiation data with listing data Enables more targeted and effective marketing Compares and analyzes offers Best-in-class Offer Management and Negotiation in the cloud: We organize the offer negotiation process! Flexible negotiation format based on market condition Conventional Sale, Open Bid and True sealed bid sale Streamline process: Connect ALL parties in REAL time Support the latest computing and mobile devices Everything is still governed by conventional industry practices Produce historical data for audit & compliance
- #14 SMARTBinder technology enables valuable offer data to be collected, analyzed and shared onDemand SMART sharing allows agents to share offer data during or after offer negotiation data A powerful analytic engine to compare and analyze offers *** Page view/Activity tracker provides agents insights on the dynamics of offer negotiation *** Manage and share documents with other agents/clients Produce historical data for audit & compliance *** System ensures process is fair and offer activities can be analyzed *** Policy makers can use technology to implement policy and ensure business is conducted according to code We can do so much with Offer Data We will be the first to bring offer data to public ******** Can attract passive clients to visit our site, just like people going to zillow to look at zestimate
- #17 OfferBinder is the only cloud-based offer negotiation tool *** Other companies target back office management and CRM Game changing analytics engine that combines offer negotiation and listing data Our unique technology allows agents to embrace cloud sharing when ready *** Agents can use OfferBinder purely as back office tool to manage their offers and listings data/documents *** The strength of our team ensures we get
- #19 Getting listing agents to endorse the cloud *** understand this is the new way to conduct business *** Real Estate business is slow to embrace new technology Agents are independent contractors; *** no technology mandates coming from the associations/MLS/brokers *** 82% contractors, 6% employees. (from www.realtor.org) *** Agents have lots of freedom in choosing technology providers But this is changing… Redfin, Intero. The distributed nature of MLS is a marketing challenge: Different MLS might have different rules and regulations ** Combine Market Challenge and Overcome?