A new app which determines the best possible price for buyers and helps them negotiate it will be launched June 20 in New Jersey and is being rolled out across the US.
Currently in beta, buyerprice.com allows users searching for homes on any property listing platform such as Zillow, realtor.com or a broker’s site to see the guaranteed maximum buyer price alongside the seller’s asking price.
Headquartered in New York City, BuyerPrice.com was created by a team of nine highly experienced real estate professionals, successful technology entrepreneurs and top level statisticians and software developers who devised a way to help homebuyers get a better deal.
"We have spent years studying house prices and how they fluctuate according to market conditions and sentiment to build a robust pricing algorithm," says co-founder and CEO Tim Hammond.
"We're so convinced ourpricing algorithm is better for our buyers that we guarantee it, or we’ll pay the difference between our BuyerPrice and the asking price.
Hammond, a 'who's who' young entrepreneur of 2002, founded his first internet start up in 1996 and sold it to a public company for £12m in 1999.
He went on to found Ideashub, an angel investment fund which raised and invested approx £6m into a portfolio of early stage new media companies, including in 1999; ZipRound, which pioneered the concept of delivering e-commerce orders within an hour and AngleBourse, the world's first 'crowdfunding platform' for angel investors into early stage companies.
After investing in and being on the board of several privately held new media companies Hammond also founded Upstarter Ventures to help accelerate the growth of early stage companies in the Property and Ecommerce sectors.
He says the Buyersprice.com app calculates what his team of experts believe homes are really worth in real time, so buyers always get a discount off the seller's asking price if they buy through the platform.
"Our buyer agents are on hand to negotiate the very best price for you. We handpick expert negotiators from local real estate brokers. Their mission is to secure the lowest price for you."
Buyers simply visit the website, or download the app, and search for homes on any property listing portal or broker’s site. When the buyer sees a house they like, the guaranteed “BuyerPrice” appears alongside the seller’s asking price.
BuyerPrice.com negotiators then personally swing into action to secure the lowest possible price, which is often even below the guaranteed BuyerPrice.
"Our invention provides a system and method for automatically calculating and displaying the price that a prospective buyer may offer to purchase a real estate property at a discount to the advertised listing price, and that is tailored to input from variable realtime data that is not influenced by a person such as the owner," Hammond explains of the alogrithm.
"We look at the property valuation from factors that might enable a discount for the homebuyer from the listing price," he says.
This is tailored by realtime market data and supply and demand data that causes a property valuation to fluctuate. For instance, the property may have been listed for a long period of time, or there might be an increased supply of other homes or a decrease in demand.
A property may have been over-priced by the listing agent or owner in relation to other comparable properties or the market sentiment level or mortgage interest rates or available finance deals might have changed.
"All these factors and more can be computed and analysed to provide a realtime fluctuating discount to the listing price so as to benefit the prospective homebuyer," Hammond says.
"This then may be used to formulate a lower counter offer by the buyer or their buyer agent that we call the BuyerPrice.
"Our pricing algorithm enables homebuyers to potentially pay significantly less than the current asking price of a home for sale.
"The web application is optimised to work with all the leading property portals and real estate websites and looks at the property valuation from factors that might enable a discount for the homebuyer from the listing price.
Hammond adds if you’re a successful real estate agent with exceptional negotiation skills, the Buyerprice team is hiring.
"We’re building a team of the hottest talent in real estate on a mission to save homebuyers money," he says.