The Broken Real Estate Market
“Anything I got is not a rental / I own that”
When Elon Musk was thinking about the idea for SpaceX, he looked at the price of a commercial rocket and worked out that the actual cost of the raw materials was 2% of the price of the rocket. He looked at that as a giant market opportunity. I believe the real estate market is also similarly broken and ripe for disruption.
Taking a page out of Elon Musk’s first principles analysis, I wanted to apply it to home buying and selling. In my mind, this is how I would buy a house:
The Current Home Buying Process
Now let’s look at buying a house in real life. I am oversimplifying a lot here, so please take it with a grain of salt.
Ways to Fix It
Now that my faith in humanity is wavering, I want to explore the potential ways to fix the issue. I’ve got 2 ideas. The first is the what I call the Skyscanner Model the other is the Full Stack Model.
The Skyscanner Model is essentially empowering the consumer to sell and buy a home. Unlike in the 90s when you would have to call a travel agent who would then call airlines, this process removes a lot of 3rd parties that suck value out of an ecosystem – reducing friction and cost.
For a seller:
For a buyer:
There are limitations to the EasyHomes model and it likely works best with an educated buyer/seller and in high density markets – but it would be amazing. I am happy to lead a seed stage investment if anyone wants to build this.
Full Stack Model
This model is much simpler but much more capital intensive.
For the seller:
For the buyer:
Light at the end of the tunnel
Luckily, there are a few companies doing incredible things in this space and I am cheering for all of them to succeed. Best players that I could find:
Other notes that might only interest me:
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