New York City's real estate market is chock-full of major competitors and in order to keep up in the fast-moving industry where deals are sealed in seconds and gone tomorrow, it is very important to be mindful of the details which make the transaction run smoothly to completion.
On average, the length of time for a real estate transaction is 45 days but FlareAgent is an AI-powered platform that reduces transaction time to 48 hours! The company has built an end-to-end solution that uses blockchain to verify and consolidate legal documents all in one place. This software was built directly based on a real estate broker’s pain points to deliver a lasting and effective solution.
Recently, co-founder and CPO of FlareAgent, Abhiroop CVK was interviewed by AlleyWatch about the launch of his company and the immense opportunity for innovation in the real estate industry.
Tell us about FlareAgent.
FlareAgent is a real estate management software where property buyers/sellers, brokers/agents, banks, and attorneys/escrows can access and submit information. As many factors play into the property transaction process, such as regulations, size of brokerage, needs of buyers/sellers, we provide brokers with a template for the software. By studying their usage for repetitive tasks, we use machine learning to suggest improvements to the efficiency of the transaction. Doing so, we are able to bring down the transaction time from the current average of 45 days to 48 hours.
How is FlareAgent different than other real estate tech companies?
Currently, real Estate brokerages either don’t use any software or employ numerous expensive platforms for different aspects of the transaction. FlareAgent is an end-to-end solution, allowing all parties involved to stay involved and communicate with one another throughout the transaction. Since many legal documents are involved, blockchain is employed to securely store all the required legalities, while maintaining transparency.
What market is FlareAgent attacking and how big is it?
$5 trillion was transacted in the US in 2017. 90% of all these transactions were made through a broker/agent. 250K brokerages across the country made a total revenue of $250B. In 2012, brokers spent more than $4B on software. Brokers are at the center of every transaction, and the more deals they can close in shorter time, the better
What is the business model?
The 250K brokerages across the US house about 2M agents and brokers. Assuming a 10% market, charging $100/agent/mo will yield an ARR of $240M.
What inspired the business?
Rashid’s (my cofounder) dad works as a real estate agent. His boss, Mr. Brown, approached Rashid two years ago with the problems of expensive and rigid software, lack of communication, and long transaction times. Rashid developed the first version of FlareAgent, and Mr. Brown loved it so much that he quit his agency and founded his own; he grew it from 50 agents to over 200 agents. We realized the potential in the software, did our research (both online to understand the market, and user research with brokers and agents in NYC), and worked on the demo version together. All our findings point to the same pain points and the dire need for evolution in the orthodox industry of real estate.
Read more here
Join us in Madrid from the 13th to the 16th of November for the Property Portal Watch Conference.