Re: Update on MS Real Estate Strategy

[The Real Estate Cafe <bwendel@realestatecafe.com>]

Norm wrote:

> On Fri, 17 Apr 1998 09:46:04 -0400 (EDT), The Real Estate Cafe wrote:
>
>  [big snip]
>
> > So in July, be looking for clues as to what lies ahead for Microsoft.
> >The company's precedent guarantees it's sure to
> > be big. And it's going to keep the real estate industry on its toes
>
>      I don't think this is going to be the 'slam dunk' M$ thinks it's
> going to be.  M$'s deep pockets will certainly help, but their 'nasty'
> reputation and the fact that they don't have a monopoly to leverage is
> going to make it a difficult venture.  Even the most rabid M$ supporter
> is going to pause at the thought of having M$ holding the mortgage on
> their house.

MS would not actually hold your mortgage, they would get a fee for helping
you select the best mortgage to meet your needs from a variety of lenders.

Others in this space presently include:
eloan.com,
quickenmortgage.com,
rate.net
homeshark.com...

A number of different business and revenue models emerging, some of which
will play a key role in delivering the money saving potential of the web
to real estate consumers.  McKinsey & Co estimates that industry
restructing will create $30 BILLION annually in "value."
(For details http://db.inman.com/inman/qa/story.CFM?ID=980123t)

 The challenge for consumer advocates / digital activists is making sure
those cost savings are past through to consumers.  At this time,
Microsofts approach is "playing within the existing value chain" rather
than maximizing the potential of new information technologies to empower
consumers to save money.  That is where other sites have a lead, and will
be able to compete effectively if they can communicate over MS's giant
marketing power, which will be leveraged by their monopoly power!


Bill Wendel
The Real Estate Cafe
221 Concord Ave
Cambridge, MA  02138
(617) 661-4046