Ask HN: How did you get your product idea?

One of the main problems is the incentive structure in real estate, and that's one of the first things I look at in any industry. I like performance-based incentive structures whenever possible. (And we tried a true performance-based incentive scheme first, but it confused too many customers.) Real estate agents, on the other hand, are almost always paid a percentage of a property's sale price - a commission. So all agents are rewarded if you pay more for your home, even when they are theoretically supposed to be helping you BUY a home for less. Our firm instead does everything for an hourly fee, like an accountant or attorney, but with a maximum cap on what the consumer pays - so there is no incentive for us to entice anyone into spending more on a home. We usually save customers at least $1000 in 'commissions' over what the 'discount' and online brokerages like Redfin and ZipRealty charge. And we don't artificially limit consumer choice to protect our pocketbooks (most discount/rebating/online brokerages will not help you buy short sales, for example, because they are more work and the transactions take longer. Many of these brokerages will also not help you buy a house for under $200K because their minimum commission would not be met, etc. We help you buy the best home for you. Period.) Agents are usually paid way too much for what they do, but sometimes they are underpaid for what they do. Consumers should pay for what they use, and no more. That is fair to both parties. VERY few existing full-service brokerages charge hourly fees. Less than 1%. Anything other than commissions is uncommon except for (limited service) flat-fee MLS listing agencies. That is a point of differentiation for us, but it's not enough.

Another issue in the industry is the principle of agency. This would take some time to explain, but basically consumers are often UNKNOWINGLY represented by agents that have no fiduciary duty to them (and/or agents that have other biasing factors that might affect the transaction outcome.) It's like Little Red Riding Hood having the Big Bad Wolf as an agent, while thinking that it's her Grandma. We represent buyers exclusively. Less than 1% of brokerages in the US are exclusive buyer agencies. That, coupled with the fee-based compensation, puts us above all but a few agencies in the country. But we need more differentiation, so we have to drive further into the "way things SHOULD be."

So we use technology that even some of the largest brokerages in the US don't have. We have a Microsoft Surface-like device that helps clients find their new homes. We have an augmented reality app that helps them find their new homes. We commissioned a traffic study ($50K+) for our area and we layer that onto our maps so that people could see actual commute times. We've hired outside consulting firms to audit local schools, etc. etc.

Another issue in the industry is the degree of education and training agents have. We require our agents to get certain industry certifications in buyer's agency and negotiation, etc. Less than 1-3% of agents in the US have each of these certifications...and very few agents have all of them. Another point of differentiation.

Most agents are concerned about how much money they can make off of you, first and foremost. As a consumer, that sucks. So we focused on how to make the experience better. We have full-time, trained financial planners that will work with you on dec...