A startup based in Seattle is trying to take down the web’s biggest real estate sites by offering buyers and sellers something that those sites don’t: help in making the decision.
Flipt.co, which launched this week, uses a complex algorithm, featuring machine-learning capabilities to interpret a mixture of publicly available and propriety data to determine how a consumer can best profit from a specific property.
The site hopes to tap into a market segment left unfilled by sites like Trulia (TRLA) and Zillow (Z) by “tapping into a robust market of online buyers and sellers who want access to more than simple home listings,” and offers facts and data-driven analysis to assist buyers and sellers in making their real estate decisions.
The site will include an inventory of residential properties and provide insights and scoring methodologies that match consumers with properties based on their unique desired outcome: “Fix & Flip”, “Buy & Hold” or “Rent Out”.
This is how the site defines each category:
- Fix & Flip -- Predicting the short-term investment potential of a home. The score takes into account the location, foreclosure status, condition and age of the property to determine the potential return on investment of a quick turn-around project.
- Buy & Hold -- Calculating a property's potential appreciation value over an extended period of time, incorporating data on current residential home values and speed of appreciation for the area and type of home to provide the composite score.
- Rent Out -- Estimating rent and cash flow potential crossed with specific details on demographics, property location, and number of bedrooms to determine the home's rental potential.
The site scores each property on a scale of 0-100 in each of those three categories. The higher the score in a particular category, the better the return on investment would be for the property.
"Like the CarFax for real estate, FLIPT arms buyers and sellers with valuable analytics that can't be found on other real estate sites," said Andrey Nokhrin, CEO of FLIPT. "As a young entrepreneur, I have experience on both sides of the picket fence -- growing a real estate and property management company and purchasing my first home. FLIPT was inspired to help the millions of people like me, looking to make the soundest real estate decision for their financial futures."
The site will also feature a “pro” service for real estate agents. The subscription-based service will connect agents with the site’s users when they are ready to take the next step in the purchase process.
"Knowledge is power, especially when it comes to big ticket items like a home purchase or property investment," said FLIPT angel investor, Rudy Gadre. "The timing is right for FLIPT -- buyers have never been more tech savvy, and the housing marketing is making a huge comeback where data-driven decision making could save a consumer thousands of dollars."