This Andreessen Horowitz General Partner discusses the future of home buying and the startups that are turning the 'broken' real estate industry on its head

a16zAlex Rampell
  • Andreessen Horowitz General Partner Alex Rampell spoke about tech companies that are disrupting the home buying experience.
  • Rampell describes the broken process of buying a home today – mainly, the fixed 6% real estate agent fee.
  • He explains that the industry is evolving to help lower the friction and bring more transparency to the process for home buyers.
  • The full video of Rampell’s presentation can be found here.

At Andreessen Horowitz’s annual Innovation Summit on Thursday, a16z General Partner Alex Rampell spoke about tech companies that are disrupting the home buying experience.

Rampell describes the broken process of buying a home today – mainly, the fixed 6% real estate agent fee – and highlights tech companies like Opendoor, Point, and Divvy that are each transforming the industry in different ways.


Read more:

Meet the startup that’s on a mission to help 100,000 people buy homes in the next 5 years, and recently raised $US30 million to do so

From home discovery to purchasing to financing, Rampell explains that the industry is evolving to help lower the friction and bring more transparency to the process for home buyers.

The full video of Rampell’s presentation can be found here.


“When Software Eats the Real (Estate) World”

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Reasons why the home buying experience is broken.

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The annual commissions for real estate agents in the US is around $US100 billion.

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Real estate agents have pushed for the industry to become an anti-competitive market, especially when it comes to their 6% fee.

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Initially, real estate tech companies aggregated home listings.

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Today, more investments are being made in real estate tech companies.

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Recent real estate tech companies are trying to solve the problems of the industry from top to bottom.

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Just increasing home ownership isn’t necessarily a good thing, as we learned in 2008. Increasing the ability to own homes and what it means to own a home, Rampell believes, is a good thing.

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Real estate as an asset class has become much more dynamic.

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For most people, buying a home is the most important transaction of their lives which will force these companies to innovate quickly.

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