I’m on a quest to understand the future of the Internet. Each week at Venturescale, I unpack new insights about profitable markets—and how you can monetize & win. Today’s post is about PropTech. Read here if you’re interested in FinTech, SaaS, private equity, Web3 for creators, future of social networks, Gaming tech, wellness tech, or online marketplaces.
Digitizing the real estate industry
Property tech (PropTech) is changing the way we buy, sell, rent, and interact with the property market. Consumers now find new houses on Zillow. Tour houses digitally in a virtual 3D experience. Apply for mortgages through Better. Sell homes on Opendoor. And invest in the real estate market using CrowdStreet.
For businesses: realtors now advertise online rather than in newspapers. Landlords manage rentals using TenantCloud rather than spreadsheets. Property managers stage a home with furniture and interior design using Virtual Staging Solutions and much more.
In this report, we will unlock new opportunities to build in the real estate space, market demand & key signals, and adjacent product categories to serve the property markets. Let’s go!
Residential property marketplace:
Accessory dwelling units (ADUs):
Online lenders & mortgages:
(🔒 Full version) 155 company examples across different segments.
(🔒 Full version) 12 business categories in the PropTech space. You can use this list to discover:
😎 What are the profitable niches in real estate tech?
😎 How to differentiate PropTech products?
😎 How to create a compelling one-liner by reading value propositions from other companies?
How to solve valid problems?
A tech business only becomes profitable when they solve real problems (need) faced by a large group of people (demand). This section unlocks the valid problems in the real estate space, and how you can use them as market validation to build something people want:
Simplify home search. It takes 6 months+ from searching to moving into a new house. Zillow, Trulia, Realtor.com, Redfin simplify home search by creating search engines for property, databases & online tools. For example: property listing, filtered search, housing data, pricing & 3D tour for users to buy, rent, or sell their homes.
Lower the cost of mortgages. Home loan isn’t free. It involves brokerage fees, closing costs, credit report fees, transfer fees, etc. It takes about 30 days to finalize a mortgage, requires strict qualifications & in-person visits at the banks. Quicken Loans and Better helps people compare mortgages in one place, offers fast approval, fast closing, and lower interest rates & fees. Morty helps you save mortgage fees by analyzing your financial information, generating accurate quotes, calculating repayments in minutes.
Help home sellers get paid fast. Sellers spend 55-70 days to sell a home, including listing, viewing, and closing. Opendoor cuts that process into a matter of days—get cash offers, skip viewing, and get paid. Zillow offers different options for home sale: through Zillow, through an agent, or sell yourself. Orchard offers you a 3D tour, professional photos, and expert marketing to sell your home—for free.
(🔒 Full version) +4 more problems existing players are solving. Understanding these problem statements will help you build something people want. You’ll also learn:
😎 4/7 How to lower the cost of housing with tech?
😎 5/7 How to monetize by increasing clients’ property values?
😎 6/7 How to make money from the property investment market?
😎 7/7 How to make money by reducing frictions?
How to monetize?
Advertising. Selling ad spaces to businesses (agents, mortgage lenders, property managers, banks), and consumers (renters, buyers, owners) by leveraging site traffic, visibility, organic keywords & audience. Zillow offers Premier Agent Advertising where ad costs are driven by the market demand and competition. The more agents buy ads in a ZIP code, the higher the price. Check out other ad products by Zillow.
Listing fees. Zillow charges $9.99 per property listing, per week. All listings will be pushed to three of the company's sites (HotPads, Trulia, and Zillow) and exclusive access to online property management tools.
(🔒 Full version) +4 more strategies to help you layer different revenue streams and build a profitable proptech. You’ll also learn:
😎 3/6 How to sell real estate services and software using bundle? Which company (and examples please) is doing that?
😎 4/6 Without any tech involved, most real estate businesses earned 5-figure per deal using this monetization method.
😎 5/6 How do online mortgage comparison sites make money?
😎 6/6 If you’re building an MVP and want to monetize using a “low-code/low-tech” way, add this revenue strategy before you build out the tech components.
Market demands & key signals
Remote work creates more digital nomads. Short-term rental accommodations and co-living/co-working solutions will rise.
Embedded investing allows businesses to build investment products as a native feature. In the future, any non-finance companies will be able to offer trading apps on top of their core business offerings.
(🔒 Full version) +3 more market evidence to prove the demand for real estate tech. You’ll also learn:
😎 3/5 How to capture the millennial homebuyer’s market in 2021 and beyond?
😎 4/5 What kinds of new property investment app will emerge in the future?
😎 5/5 What kinds of no-code PropTech tools will emerge?
Port for remote home tours. Virtual tour software can give you an interior home experience but can’t provide details on the surrounding of the property. A solution could offer on-demand booking of a real person to live-stream the property, tour the neighborhood, receive real-time feedback, get an extra pair of eyes to check the environmental “vibes”—remotely.
(🔒 Full version) 5 specific product ideas and business opportunities that are solving problems. You’ll unlock:
😎 2/6 Another virtual software opportunity
😎 3/6 Commercial real estate opportunity
😎 4/6 Community business in the real estate business
😎 5/6 Help local residents make extra incomes with real estate
😎 6/6 Monetize by curating visibility for property managers