idea #026: 'Stock Screener' for Homes
Filter on fundamentals and technical indicators. Why not??
The search for a new home or investment property requires a ton of effort. Yes, there are solid options for your typical search via Zillow or Realtor.com, but none of these consider financial factors that can help guide your decision from a purely fundamental perspective.
Most buyers are searching based on simple factors, such as budget, $/ft, location boundaries, or basic features of the home, e.g. # of bedrooms, patio, etc. All these are valid factors, but what these fail to do is provide an indication on appreciating home value, deep comparison to other properties, insurance claims, market trends, 'health' of the property, maintenance estimates, renovation history, HOA history, or as an investor, probability of demand (rent projections). Point is, there are many macro and micro considerations that influence the future value of a home that go beyond location and an open floor plan.
So, I ask myself, how could you start aggregating much larger data sets to effectively calculate fundamentals of a property like you would for stocks/ETFs? Imagine being able to calculate and search for homes using an equivalent PEG ratio to objectively find undervalued homes, or help determine a market or offer price?
There are probably a few startup ideas folded into this over different development horizons: 1. Collect and Organizing Data - license through an API, 2. Creation of a Platform tool for investors, 3. Freemium offering to individuals.
In my experience, I would have loved to have something like this to help balance emotion with quantitative analysis when making a purchase or sale. It won't be for everyone, but the patterns are there, just a question of revealing them.