Real Estate Web Site Educates Homebuyers
Real estate fees can be a frustrating part of the home buying process, but there is now a Web site that hopes to make that a bit easier.
Feedisclosure.com is hoping to create an open competitive marketplace for real estate transaction fees.
"It's one of the last industries that is still back in time. It's similar to financial markets prior to online trading," said Mike Kratzer of FeeDisclosure.com Founder.
Kratzer and Mark Zimmerman started the company with their own money. The site allows consumers at no cost to type in the price of the home their buying and the zip code.This allows users to access a list of vendors offering their services from everything from appraisal, to pest control, to title search and listing their prices.Users can even compare prices to the national average. There is also a "name your own" fees option similar to Priceline.com.
"One of the main purposes of this (Web site) is discrimination. We have estimates that many of the Hispanic population, as well as the African-American population, pay up to nine times more for real estate transaction fees," said Kratzer.
So far, more than 10,000 vendors across the country have signed up. It's a free service unless the user wants to pay to be a featured vendor. The site also makes money by selling leads to three lenders from the name of your own fees tool.If the homebuyer wants to know what the national average for fees are, it will cost them $9.95.
The company said they plan to be profitable by the end of 2008.
"We have a lot of interest from the private equity groups. We have a lot of interest from other companies and also a lot of interest from venture capital," said Kratzer.
"I'm honestly surprised that it hasn't been done already," said realtor Rosemary Allison.
Alison is one of the top 10 Century 21 realtors in the country who is signed on as a featured vendor hoping the site helps educate homebuyers.
Josh Nicassio is a mortgage broker who thinks the site will force some vendors to lower their prices but will help everyone look more credible.
"It's going to create a certain level of transparency. I think some vendors may look at this as, 'Hey, he's trying to slash our fees,' where really this is where the industry is going anyways," said Nicassio
Feedisclosure.com is hoping to create an open competitive marketplace for real estate transaction fees.
"It's one of the last industries that is still back in time. It's similar to financial markets prior to online trading," said Mike Kratzer of FeeDisclosure.com Founder.
Kratzer and Mark Zimmerman started the company with their own money. The site allows consumers at no cost to type in the price of the home their buying and the zip code.This allows users to access a list of vendors offering their services from everything from appraisal, to pest control, to title search and listing their prices.Users can even compare prices to the national average. There is also a "name your own" fees option similar to Priceline.com.
"One of the main purposes of this (Web site) is discrimination. We have estimates that many of the Hispanic population, as well as the African-American population, pay up to nine times more for real estate transaction fees," said Kratzer.
So far, more than 10,000 vendors across the country have signed up. It's a free service unless the user wants to pay to be a featured vendor. The site also makes money by selling leads to three lenders from the name of your own fees tool.If the homebuyer wants to know what the national average for fees are, it will cost them $9.95.
The company said they plan to be profitable by the end of 2008.
"We have a lot of interest from the private equity groups. We have a lot of interest from other companies and also a lot of interest from venture capital," said Kratzer.
"I'm honestly surprised that it hasn't been done already," said realtor Rosemary Allison.
Alison is one of the top 10 Century 21 realtors in the country who is signed on as a featured vendor hoping the site helps educate homebuyers.
Josh Nicassio is a mortgage broker who thinks the site will force some vendors to lower their prices but will help everyone look more credible.
"It's going to create a certain level of transparency. I think some vendors may look at this as, 'Hey, he's trying to slash our fees,' where really this is where the industry is going anyways," said Nicassio
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