Note: Descriptions are shown in the official language in which they were submitted.
MATT PROMAN
NEWPORT BEACH, CALIFORNIA
ARTIFICIAL INTELLIGENCE EVALUATION SYSTEM USING
COLLECTED INFORMATION ON ALTERNATIVES AND
SELECTIONS
TECHNICAL FIELD
[01] The invention relates to an artificial intelligence apparatus and
method for evaluating numerical and qualitative data on the basis of
selected data digested from large amounts of collected information on
homeowner options and selections in connection with a novel real estate
transaction.
CROSS REFERENCE TO RELATED APPLICATIONS
[02] This application is a continuation-in-part of non-provisional United
States Patent Application No. 16/995,752, filed August 17, 2020, entitled
Real Estate Communications System and Method for Distributing Real
Estate Listing Information, and Collecting Commitment Information and
claims the benefit of the priority of that non-provisional patent application.
This application also claims the benefit of United States Provisional Patent
Application No. 62888499, filed August 18, 2019, entitled Real Estate
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Communications System and Method for Distributing Real Estate Listing
Information, and Collecting Commitment Information, and United States
Provisional Patent Application No. 63155712, filed March 2, 2021, entitled
Real Estate Communications System and Method for Distributing Real
Estate Listing Information, and Collecting Commitment Information. The
disclosures of the above non-provisional patent application and the above
two provisional patent applications are hereby incorporated herein by
reference.
STATEMENT REGARDING FEDERALLY SPONSORED RESEARCH OR
DEVELOPMENT
[03] (Not applicable)
BACKGROUND OF THE INVENTION
[04] Conventionally, it is known that when an individual decides to sell
real property, for example a home, success in obtaining a good price
within a reasonable amount of time is correlated to the degree of exposure
of the availability of the property to potential buyers and the quality of the
agent in terms of being hard-working, able to interface with potential
buyers, and so forth. Exposure, for example by a homeowner working
without an agent, was often achieved by widely advertising the property
in the general geographical area within which the property was located.
Seeking to obtain an additional degree of exposure, many sellers sought
the assistance of a real estate agent. Employing a real estate agent, while
entailing the payment of a commission, could dramatically increase the
probability of a sale at a good price, for example where an agent had a
strong reputation or a large following, or worked hard and advertised
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widely to turn up leads on potential buyers. Under an arrangement of this
sort, a trusted agent is given a period of exclusivity, for example 3 to 6
months within which to sell the property. An individual with this
exclusive agreement is often referred to as the "listing agent."
[05] It is noted that the terms "realtor," "listing agent," "broker," "agent"
and so forth are used in different ways by different persons, particularly
lay persons. Notwithstanding the terminology used herein the general
principles of the inventive communications apparatus and artificial
intelligence apparatus are meant to facilitate decision-making,
communications and the execution of tasks involving the owner of a
property such as a house, apartment or boat and those professionals
assisting in the sale or rental of the same.
[06] Traditionally, listing agents have sought to increase their
effectiveness by joining a multiple listing service ("MLS"). Under such an
arrangement, a package of services is provided to real estate agents to
allow them to establish contractual offers of compensation among agents,
allows each of them to see one another's listings of properties for sale and
enable a number of agents to attempt to sell a particular property, as well
as to accumulate and disseminate information to enable appraisals.
[07] If a property is marketed under a multiple listing service, the
commission is shared between the buy side agent and the seller's agent. As
a first step, the total compensation amount is typically determined by the
seller and the seller's agent. Generally, the seller's agent, as the listing
agent, then advises all other MLS participants what the amount of
compensation to the buyer's agent will be. Compensation to the buyer's
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agent can take the form of a percentage of the sales price or a fixed dollar
amount. However, a buyer's agent is free to negotiate the amount of the
commission with the seller's agent.
[08] Today, Internet-based services are used to expand wholesaling
efforts beyond conventional pre-Internet marketing activities over, the
essentials have not changed and marketing proceeds on the basis of the
above principles. Generally, enterprises operating real estate databases
make information respecting properties (such as location, asking sales
price, listing agent(s) and so forth) more widely available, thus increasing
the likelihood of a sale at a good price within a reasonable period of time.
Typically, real estate databases gather information by attracting buyers,
sellers, landlords and potential tenants to their website and collecting
information useful in facilitating a real estate transaction. In addition,
database operators access multiple listing services to collect additional
information, to further enable their goal of providing information aimed at
facilitating the consummation of real estate transactions.
[09] As a general rule, database operators charge nothing to the buyer or
seller or their agents for the sales which they help to enable. Rather, they
generate income by banner advertising, the sale of apps and other services.
SUMMARY OF THE INVENTION
[10] While Internet-based services of the type described above are useful
in facilitating the dissemination of information, they are inherently
incapable of providing personalized services of the type which may be
focused on the sale of a particular property. Such activities essentially
remain within the exclusive purview of real estate agents. Accordingly,
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obtaining a listing agent with the economic muscle to market a property
and a commitment to vigorously do the same are critical to a seller's or
landlord's obtaining a good price within a reasonable period of time.
[11] In accordance with the invention an artificially intelligent
communications apparatus comprises a central processing unit. A first
database stores a numerically quantifiable first attribute. The first database
is in communication with the central processing unit. A second database
stores a numerically quantifiable second attribute, the second database
being in communication with the central processing unit. A third database
stores a numerically quantifiable third attribute, the third database being
in communication with the central processing unit. An input
communications channel receives a plurality of bids, each of the bids
comprising a numerical value for the first, second and third numerically
quantifiable attributes and bid identification information. A non-volatile
memory bears a software program. The software program controls the
central processing unit (i) to store, for each bid, the first, second and
third
numerically quantifiable attributes and their associated bid identification
information together with information whether the bid was selected, (ii)
for a particular auction select those bids in which the second and third
numerically quantifiable attributes are the same or within a specified
numerical range and store the same in a first normalized database, (iii) for
a particular auction select those bids in which the first and third
numerically quantifiable attributes are the same or within a specified
numerical range and store the same in a second normalized database, (iv)
for a particular auction select those bids in which the first and second
numerically quantifiable attributes are the same or within a specified
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numerical range and store the same in a third normalized database, (v) for
the first numerically quantifiable attribute determine a magnitude of
difference in the first numerically quantifiable attribute causing a bid
selection compared to less favorable rejected bids within the first
normalized database by comparing bids within the first normalized
database to each other to generate a first marginal driver (the difference
needed to make a bid successful compared to other bids); (vi) for the
second numerically quantifiable attribute determine a magnitude of
difference in the second numerically quantifiable attribute causing a bid
selection compared to less favorable rejected bids within the second
normalized database by comparing bids within the second normalized
database to each other to generate a second marginal driver; (vii) for the
third numerically quantifiable attribute determine a magnitude of
difference in the third numerically quantifiable attribute causing a bid
selection compared to less favorable rejected bids within the third
normalized database by comparing bids within the third normalized
database to each other to generate a third marginal driver. A selected bid
from an agent is compared to other bids on the same property to generate
a suggested bid derived from a marginal driver value and a numerically
quantifiable attribute.
[12] While, for purposes of illustration, this specification often makes
reference to a real estate buyer and seller, it is understood that this is
merely an example of the application of the invention which may also be
applied to the renting of properties by landlords to tenants.
[13] The importance of the seller or landlord retaining an effective listing
agent may be understood by considering several potential scenarios which
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illustrate how obtaining a good price within a reasonable period of time
might be inhibited. For example, a listing agent may not have the financial
resources to advertise the property. Also, if the listing agent has a limited
number of properties, he may be tempted to keep the listing to himself and
only sell it to buyers who approach him or his agency directly, thus
ensuring that such a listing agent retains the entire commission. However,
the most insidious possibility is that the listing agent will focus his
efforts
on accumulating a large number of listings, put them out over the multiple
listing service, and then just wait for other agents to do the work and incur
the expenses associated with finding buyers.
[14] The crux of the problem is that the real estate market has a relatively
complex structure and the fairness of the arrangement between the listing
agent and the seller/landlord can affect the effectiveness of the marketing
effort. For example, a fair commission can be the to depend upon whether
it is a buyers' market or a sellers' market for the particular interest in
real
property involved. Moreover, fairness can be easily compromised due to
the imperfect nature of the market involved, insofar as real estate agents
typically have much more information about current and expected market
factors as compared to homeowners and even many, particularly smaller,
landlords.
[15] In accordance with the invention, it has been recognized that a
marketplace which facilitates the formation of relationships between
listing agents and sellers, not just on the basis of property information but
also on other bases, for example the full spectrum of market factors and
individual potential listing agent characteristics, will better serve the
objective, within the context of a real estate communications system, of
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achieving consummation of a greater proportion of real estate transactions
at good prices within a reasonable period of time.
[16] However, the judging of potential ways forward for a seller
involving financial considerations, real estate agent personalities, and the
consideration of property specific factors is a complex task, and one which
is presently done on the basis of incomplete information, intuitive
assessments and common sense. The objective of the present invention is
to provide a reliable artificial intelligence apparatus and algorithm aimed
at providing superior results by measuring the relevant factors, assessing
seller reactions engaging the same against success in the marketplace. This
is done through the collection of large amounts of data, assessment of
multiple factors, selection of data to guide that assessment and a
multilayer decision strategy to provide bottom-line decision guidance,
identifying important parameters and their relative importance, and the
highlighting of more important parameters to supplement the bottom-line
decision guidance.
[17] The inventive method, comprises receiving a plurality of property
identifications associated with a plurality of properties and storing the
property identifications in a property database. A plurality of sets of
property attributes, each of the sets of property attributes being associated
with an associated one of the plurality of properties are received and
stored in the property database with associative information associating
each particular set of property attributes with its associated property. A
plurality of owner communication addresses, each of the owner
communication addresses being associated with an associated one of the
plurality of properties are received by and stored in a property owner
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address database with property associative information associating each
owner communication address with its associated property. A plurality of
agent identifications each associated with a particular agent are received
and stored in an agent database. A plurality of sets of listing agent
attributes, each of the sets of listing agent attributes being associated with
an associated one of the agents are received and stored in the agent
database with agent associative information associating each particular set
of agent attributes with its associated agent. A plurality of agent
communication addresses, each of the agent communication addresses
being associated with an associated one of the plurality of agents are
stored by the system. Each agent communication address is received and
stored in a agent communication address database with agent
communication address associative information associating each agent
communication address with its associated property. One or more
property identifications with a partial or complete set of the property
attributes associated with each provided property identification are each
provided to agents. The inventive system receives from a plurality of
agents, provided with one or more property identifications each with a
partial or complete set of the property attributes, bids to secure a listing
agent representation for the sale or rental of a particular property, the bid
being associated with bid information. The bid may be, for example, a
fixed monetary bid, and may include potential listing agent information,
and/or other parameters of the proposed agent's representation including
the term of exclusivity of the representation, and the rate of commission
which the agent will take as a sales commission. The bid information
associated with a property identification and a agent identification may be
stored in a bid information database. The bid information is
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communicated to the owner of the associated property together with a
agent identification and agent attributes.
[18] Optionally, each of the sets of property attributes comprise a
plurality of individual property attributes, such as a selling price, a
geographical indicator and a physical feature. The property database may
be optionally divided into a plurality of property attribute sectors,
wherein each of the individual property attribute sectors is dedicated to
storing one of the individual property attributes.
[19] In accordance with the invention, agents will search the database
and bid on representing the properties in the database, and the agent
submitting the bid accepted by the seller pays the seller in exchange for a
period of exclusive representation.
[20] Optionally, the providing of one or more property identifications
each with a partial or complete set of the property attributes associated
with each provided property identification to agents is performed by
receiving from a searching agent a number of search criteria indicating
searching agent selected individual property attributes and searching
agent selected qualitative and/or quantitative characteristics, searching the
property database and identifying potential properties of interest to the
searching agent.
BRIEF DESCRIPTION OF THE DRAWINGS
[21] The operation of the inventive apparatus and method will become
apparent from the following description taken in conjunction with the
drawings, in which:
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[22] FIG. 1 is a flow chart generally illustrating the methodology of a
general implementation of the present invention;
[23] FIG. 2 is a block diagram illustrating an exemplary embodiment of
the infrastructure for implementing the presentation illustrated in FIG. 1;
[24] FIG. 3 is a block diagram illustrating a technical diagram of an
embodiment of the application;
[25] FIG. 4 is a flow chart generally illustrating the information flow of
an exemplary embodiment;
[26] FIG. 5 is a block diagram of a portion of the functionality of the
inventive system dealing with the opening of a listing;
[27] FIG. 6 is a block diagram of that portion of the inventive method
dealing with initial publication of potential properties in the selection of
agents for bidding according to the present invention;
[28] FIG. 7 is a block diagram illustrating the bidding portion of the
method executed and embodied in the apparatus of the present invention;
[29] FIG. 8 is a block diagram illustrating the bid selection method
embodied in the inventive apparatus;
[30] FIG. 9 illustrates the functional structure of the inventive artificial
intelligence apparatus;
[31] FIG. 10 is a block diagram of the inventive apparatus;
[32] FIG. 11 is an alternative embodiment of the invention illustrated in
figures 5-10, similar to the block diagram of the methodology of Figure 8,
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showing an alternative embodiment in which the seller is presented with a
comparative report; and
[33] FIG. 12 illustrates a report generated in accordance with the
alternative embodiment of Figure 11.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS
[34] In accordance with the invention, an artificial intelligence apparatus
is provided for assessing, based on large amounts of data collected by the
system, the desirability of seller and real estate agent options in connection
with a novel financial arrangement. More particularly, the same as
facilitated by a multilayered deep learning algorithm which improves
results as the system is used. In addition, the system facilitates
communications functions which, in addition to providing channels of
communication between human participants, also serves the dual function
of collecting data, and presenting data and artificially reasoned guidance
indications.
[35] One may begin to understand the inventive system, as diagrammed
in Figures 1 and 2, where both homeowners and real estate agents are
provided with a trading and negotiation platform capable of nationwide
and/or international reach. More particularly, the inventive system
provides an infrastructure for the valuation of agent interest, agent
information collection and transmission, and a mechanism for the making
of performance-enhanced contracts for exclusive and non-exclusive listing
agreements for buying, selling and leasing, for example, residential and
commercial real estate. More particularly, the inventive method
implements and gathers data from bidding-like/auction-like information
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exchanges, offers and acceptances with the object of implementing
performance-enhanced contracts for exclusive and non-exclusive listing
agreements.
[36] The result is to provide the numerous benefits to both homeowners
and agents, for example commercial and residential real estate agents. In
this specification, it is to be understood that references to selling
transactions between a seller and buyer are to be understood as applicable
to analogous transactions, that is, for example, applicable to leasing
transactions between lessors and lessees, and vice versa.
[37] In accordance with the invention, the seller or lessor posts a home or
other property on either a web platform or using an app. The posting
includes a description of the listing including but not limited to such
things as home value, home listing price, suggested starting bidding price,
location, photos, videos, square footage, number of bedrooms and
bathrooms, school district, taxes, and so forth.
[38] The posting of the seller's home or property made available to all
real estate agents (or optionally a selected group of real estate agents, for
example, subscribers to the inventive system, or agents in a given locality).
Optionally, the posting can be made available worldwide or in a limited
geographic region. Upon accessing a posting, a real estate agent is given
the opportunity to bid on and buy, for example, the rightto represent the
owner on an exclusive or non-exclusive basis in the selling or leasing of a
home or other property for an agreed upon period of time, for example
periods of time ranging from three months to 24 months. Optionally, the
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exclusivity may be limited to sales above a set price, leaving the owner to
make a sale at a lower price.
1391 In accordance with the preferred embodiment, the inventive system
may comprise a website and communications infrastructure, or
alternatively an app enabled over the Internet. In addition, going beyond
an information exchange function, the inventive apparatus implements
actions associated with a sale (for example, sale of a right to sell).
However, the inventive apparatus, optionally, is not involved in any
capacity in the actual buying and selling of the home or other property.
Rather the focus of the inventive apparatus is to act as a platform to
implement the sale of listing agreements at fair market value in a bidding-
like process.
[40] In accordance with the invention, a seller is able to monetize as an
asset his listing agreement. He is thus paid for assigning to a real estate
agent the right to sell or lease a property or home. This compensation to
the homeowner or property owner, which is optimized on the inventive
platform, is in lieu of the traditional approach of the seller giving the
listing agreement to a real estate agent or investor at no cost. At the same
time, an artificial intelligence algorithm guides both the real estate agent
and the seller based on prior transaction data, data selection, data
normalization and bottom line valuations and recommendations.
1411 Thus, in accordance with the invention, the seller is able to showcase
a home in front of real estate agents and investors, for example,
worldwide, to, for example, bid on or, alternatively, outright buy the rights
to listings, or combination of the two approaches. The payment to the
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seller for the right to list ensures that the seller engages an agent or
investor who has an economic investment in seeing the home or property
sell. It also potentially can attract only agents who believe they can
efficiently sell the home or property.
[42] This process de-risks the sellers exposure to hiring the wrong real
estate agent to sell their home or property. The premise is based on the
consequences which follow when a real estate agent has invested his own
money into buying the right to sell or lease a home or property. Such
agreements can be made with a high degree of confidence because the
investment made by the real estate agent carries an implication that the
agent has made an assessment that there can be a successful effort.
[43] With the benefit of the inventive system, investors and real estate
agents can access potential clients without the cost of the traditional
advertising of their services to large numbers of people, only a few of
whom may be looking for their services. Instead, financial resources can be
used to invest in the exact inventory they are most likely to be able to
monetize and on advertising and other efforts more likely correlated to
their client's needs and objectives.
[44] While today many real estate agents build their business other than
through general advertising, for example by "referrals" or "word of
mouth," such efforts are not predictable or scalable. The inventive system
allows real estate agents the ability to access and buy potential inventory
while providing a direct economic benefit to the seller. It also provides the
seller with a real estate agent who is enhancedly motivated to achieve
seller objectives due to monetary investment in the same, particularly
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when exclusivity is time limited. The inventive infrastructure makes
possible novel matrices of relationships which may vary over time and
allow high performing agents the opportunity to better serve owners and
investors.
[45] In accordance with a particularly preferred embodiment of the
invention, the operator of the inventive system ("system operator") pays
an agreed to amount of compensation to, for example, a homeowner. The
homeowner agrees that for a period of, for example, thirty days the system
operator has the right to make an agreement appointing a real estate agent
to represent the homeowner in, for example, the sale or leasing of the
property. Of course, other periods of time may be employed, such as a 60
day bidding period.
[46] During that thirty day period, the system operator lists information
regarding the property and the nature of the engagement desired by the
homeowner on the system and makes the same available to real estate
agent subscribers to the platform provided by the inventive system.
During that thirty day period, real estate agent subscribers bid for the
homeowner's listing.
[47] In accordance with an embodiment of the invention, the homeowner
is advised of bids as they occur, for example by email. Alternatively, bids
may be reported periodically, for example once a day by email. Yet
another alternative is to make bidding information available to the
homeowner by posting the same on the account of the homeowner on the
inventive system.
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[48] Optionally, at any point during the bidding process, the homeowner
can stop the process by accepting a bid. It is contemplated that bid
information sent to the homeowner may include such things as the
duration of exclusivity that the real estate agent is seeking, the commission
that the real estate agent is seeking, the identity of the real estate agent,
office locations, number of agents, and so forth.
[49] In accordance with one alternative embodiment of the invention, it
is contemplated that the homeowner may specify certain criteria, for
example, such parameters as the duration of exclusivity that the real estate
agent will be given, the commission that the real estate agent will receive
when the property is sold, and so forth. At the end of the thirty day period,
if the homeowner has not accepted one of the bids made by the real estate
agents, the system evaluates bids made and selects the closest match to the
parameters specified by the homeowner, and gives the closest matching
real estate agent the right to represent the property for the agreed to period
of time, commission and so forth.
[50] In accordance with the invention, it is contemplated that the system
will be funded by real estate agents who pay the system operator for the
information gathering services provided by the system operator. Such
payment may take the form of a yearly membership, or payments made
for the successful use of information provided by the system operator, for
example, use of that information by the real estate agent in the form of the
real estate agent accepting the representation of the homeowner. In
accordance with the invention it is contemplated that the information
gathering fee paid by the real estate agent is not refundable to the real
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estate agent insofar as potentially valuable information has been provided
by the system operator.
[51] The operation of an exemplary embodiment of the inventive system
may be seen with reference to FIG. 1, which depicts a flow chart
illustrating the methodology 1 of a general implementation of the present
invention. Referring to Fig. 1, the system associated methodology in step
group 2 implements account creation at step 10 for potential members,
including but not limited to sellers and agents. During account creation,
would-be members provide basic information, including whether they are
real estate professionals or property owners seeking to use the inventive
system to sell or lease property. Once registered as a member, a real estate
professional or property owner may log into the system. In this disclosure,
the term "seller" is used for convenience in description but is meant to
include individuals who are interested in leasing out a property.
[52] The inventive system enables login at step 12. This enables the
system to be used by sellers in step group 4 and agents in step group 6.
Having identified themselves as real estate professionals or property
owners at account creation at step 10, the inventive method 1 provides for
login at step 12. Account verification 14 is used to determine whether the
member signing in is a property owner, for example a seller, or a real
estate professionals such as a agent who executes in connection with step
group 6. Depending upon whether the member is a property owner or a
real estate professional, the member is routed through the appropriate
subsequent method steps and provided with the appropriate functionality
and access to post information and see appropriate posted information.
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[53] Seller member sign in at step 15 provides a seller with access to a
user dashboard for creating a new post at new property posting step 18,
and to view current posts and recent activity at review step 28. New posts
created at step 18 include creating a property record and description,
entering auction parameters at step 20 such as estimated selling price,
auction time duration, and location, with the ability to enable manual
update of listing price by the seller at step 22. Upon completion the seller
can check his entries at submission step 24 and if acceptable submit the
prepared or amended post and notify agents at notification step 26.
Conversely, if the user wishes to change some of the data, he can otherwise
return to post or amend data.
[54] Seller (or lessor) member sign in at step 15, further allows the seller
to access all post data and recent activities at step 28, including the
ability
to interact with listing offers at step 30 such as accepting or countering
offers. When accepted, a notification, at notification step 40, is sent to the
agent account associated with the offer being accepted.
1551 As stated above, a seller signs up by entering the seller's home or
property address, price, and other user information, which will create a
user for the inventive system and allow the submission of listing
information, subject to amendment at a future date. From signing in or log
in, the seller is led to the dashboard where he can resume editing the
listing information, delete, or view current published listings. In
accordance with the invention, it is contemplated that in order to publish a
listing, the seller must enter information into certain required fields, for
example, financial and address details. Optionally, a 72-hour auction starts
as soon as the seller publishes the listing. In accordance with the invention,
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optionally, the parameters initially entered by the user may be varied at
will. Optionally, the system may limit the range of variation, or prevent
the editing of certain informational items. The seller can view all incoming
bids and has the ability to accept any bid during the period.
[56] A separate methodological sequence is followed in the case where
the member who has signed in is a real estate professional. If account
verification 14 determines that the member is an agent, the member is
given access to agent-member methodology and information. Broker and
agent members are signed in at sign-in step 42 after which the agent is
given the opportunity to either search existing listings or execute a
communication respecting a listing.
[57] More particularly, agent member sign in step 42 provides access to
agent data including but not limited to the ability to proceed to browsing
step 44 to search and view listings created by member-sellers. Such
browsing may be enhanced by the creation of filters which lower the
number of hits while increasing their relevancy on average. Likewise, the
system provides the opportunity at deal 54 for the agent member to take
action on posted properties listings. This can include making an offer to a
seller member to buy the rights to list the seller member's property. It can
also include communications with a seller member who has engaged the
agent to list the seller member's property. Posts in a search can be
narrowed during browsing by using various filters such as location, price,
or other property attributes. Viewing the listed properties 46 can further
provide detailed and customized displays of search identified properties
for presentation to the agent at step 48. This enables agent review and
consideration and makes it more effective prior to making any decision to
Date Recue/Date Received 2022-03-02
bid at step 50 to accept the offered terms, or in the event of a decision to
deal, proceeding to dealing step 54.
[58] Agents have the option when bidding at step 52 to offer a requested
minimum base value for the right to represent the seller member for the
listing. In such event, the system proceeds to step 60 where the seller is
notified of the acceptance of his offer. In accordance with the invention, it
is contemplated that the seller would not accept the agent's proposal to
proceed at the minimum price for the listing until some time has passed to
allow for the possibility of a higher price being bid by another agent for
the opportunity to represent the seller's property.
[59] Alternatively, the agent can proceed to dealing step 54 where the
agent may counter with a higher or lower price for the right to represent
the listing or accept a listing counteroffer made by the seller at step 56 or
reject such an offer. If an offer/counteroffer is accepted at acceptance step
56, the payment may be internally processed at step 58 and the parties
noticed. Alternatively, execution of the payment may be directed to a
third-party application 8 for processing payment as detailed below.
Notification prompt 60 can be triggered by various aspects of the system
including but not limited to bidding, dealing, countering an offer,
accepting an offer, rejecting an offer, and payment processing.
[60] In accordance with the invention, numerous alternatives may be
implemented. Agents can sign up using their brokerage information,
address, as well as personal information to create their user account.
Agents have the ability to add or skip the payment information during this
process. Agents get access to a dashboard where listings are populated for
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agents to bid on or watch. Agents are able to view all nearby listings
within their price and distance range. Agents can further put listings on
their watchlist or start bidding. Clicking on a listing allows for a further
view of property details such as home owner name, auction duration and
expiry date, property value, address, photos, and bidding can begin in the
detail view.
[61] System step group 2 further has third-party app connectivity and
access at step group 8, allowing for third-party applications to pull system
data 68 such as transaction data, auction parameters 20, new posts 18, and
relevant data to facilitate interaction between the third-party app by way
of the processes in step group 8 and the system step group 2, as well as
payment data at payment processing step 62 and notification data at step
64.
[62] If an offer is accepted at step 56 the payment may be internally
processed at step 58 or directed to a third-party application at step group 8
for external payment processing at step 62. After payment processing both
seller and agent members may be prompted to and provide feedback on
the experience using the system. In accordance with the invention, it is
contemplated that such communications messaging may be implemented
whereby member sellers may communicate with other member sellers,
and member agents may communicate with other member agents.
Optionally, the system may provide for member agents to communicate
with members sellers. It is also contemplated that the system will provide
for the sending of notification data to both sellers and agents. Notification
data 64 can include notifications such as notifying an agent to provide
feedback for a seller.
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[63] Notifications may be facilitated via SMS text message or email, and
include but are not limited to the following. Seller accounts may receive
notifications welcoming a member upon sign up, when a new bid on the
listed property is placed, and of periods of time remaining until bidding is
closed ( such as 24 hours remaining until the bidding period closes and
when the bidding period closes such as a 72-hour mark, 120 hours after the
inspection period closes, and when an agent sends in their payment).
Agent accounts may receive notifications welcoming them upon sign up,
when there is a new listing in the seller's area, occurrence of a new high
bidder, when the bidding period closes, and the highest bidder on a the
termination of the auction.
[64] FIG. 2 is a block diagram illustrating an exemplary embodiment of
the infrastructure for implementing the presentation as illustrated in FIG.
1. A seller 4 or agent 6 may utilize the system via a web browser 102 or a
mobile app 104. Web browser 102 and mobile app 104 communicate with
the system database 108 including related cloud services and necessary
plugins, via an API Management 106.
[65] FIG. 3 depicts an exemplary embodiment where users 120 can sign
up via email and phone wherein an API connection 122 provides access to
a Web Client App on cloud server 124, Rest API on cloud servers 126,
and/or a NO SQL Database 128 such as Mongo. Payment processing 130
can be achieved by communicating via API connection 132 to a payment
processor 134 such as Stripe Connect. Concurrently, consecutively, and/or
alternatively, third-party notification services 140, including but not
limited to cloud-based SMTP providers 142 such as Sendgrid and/or cloud
communications platform as a service 144 such as Twilio, can then be
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communicated with via an API connection 146 to provide notifications 148
back to the user 120.
[66] FIG. 4 depicts an alternate embodiment of the present invention
where a potential user may start to use the present invention by signing up
at step 152 and creating an account with personal login credentials. Once
signed up, the member signs into his account by proceeding to login step
154 at which the system provides his/her account dashboard. Both initial
sign up and login provides access to the user's dashboard which facilitates
the appropriate capabilities depending on whether the account is
associated with a seller 160 or an agent 180.
[67] Seller 160 can create a new listing at step 162, at which point the
seller 160 must choose to either save the listing (for example as a draft that
may be later modified before publishing or republishing) at step 164 or to
publish the listing at step 166. This will enable the listing created at step
162 to be opened for potential bidding to start. Should the seller 160 choose
to publish the listing at step 162 it triggers two events. The first is a
timed
auction 168, in this particular embodiment lasting 72 hours, but
parameters can vary. The second is a notification at step 170 sent to agents
180 informing them of a newly published listing. When bids are entered,
the seller 160 can accept or auto accept the bid at step 172 based on a
preapproved bid amount. Such preapproved bid amount may be a
function of neighborhood, price range, age of home, etc. Once the bidder is
selected at step 174 a notification is communicated to the bidding agent at
step 180 giving five days to inspect.
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[68] Agent 180 can enter brokerage information at step 182 proving
access to browse listings at step 184 which can be narrowed down by
search criteria and notifications based on which search criteria may be
activated. When a newly created listing at step 162 is published at step 166
wherein the criteria matches a search criteria of an agent 180, the agent 180
would be notified as such and can then browse the listing at step 184 based
on the search criteria. Upon finding a favorable listing, the agent 180 can
bid on the listing at step 186. When a bid is placed on a listing at step 186
a
notification at step 173 is sent to seller 160, notifying seller 160 of the
bid,
upon which the seller must decide whether to accept the bid or notifying
the seller that the bid was auto-accepted at step 172.
[69] When a bid is accepted at step 172 and a bidder selected at step 174
the agent 180 has five days to inspect at step 176 before accepting the
listing at step 188. When an agent 180 accepts a listing at step 188 the agent
must send a payment at step 190 and notify the seller at step 192 that the
listing was accepted at step 188. Payment processing at step 194 can be
achieved via a third-party application 195 such as Stripe.
[70] Turning to Figure 5, a method 210, implemented on the inventive
system, is initiated at step 212 with the seller of the property to be sold
logging onto the inventive system and clicking on a hyperlink at step 214
to open a blank property listing graphic user interface screen with fillable
blanks. The informational attributes called for in the fillable blanks are
input by the property seller at step 216. In accordance with the invention,
the property attributes may include type of property (for example home or
apartment), street address, number of bedrooms, proposed asking price,
and so forth. This information is stored for future use on the system at step
Date Recue/Date Received 2022-03-02
218. The owner then proceeds at step 220 to input a description of the
property and any other relevant facts which the owner believes will be of
interest to real estate agents.
[71] Optionally, the seller may input photographs of the property at step
222. The proposed listing is then sent by the system to an administrator at
step 224. The administrator reviews the proposed listing at step 226 and if
there are no significant changes, the listing is published for preview at step
228, as will be detailed below.
[72] Alternatively, the administrator may optionally propose edits at step
230, and then send the proposed and optionally amended listing at step
232, with or without edits, to the seller for optional amendment of the
listing by the seller. The process of listing generation then continues with
the input of property attributes at 216 and the subsequent steps detailed
above until a proposed listing is approved for publication to preview at
step 228.
[73] During the preview period initiated with publication at step 28, the
listing is accessible to real estate agents who use the inventive system for a
period of time, but the agents are not able to bid. In accordance with the
invention, the preview period may have a duration of, for example, 72
hours. More particularly, referring to Figure 6, during the preview period
which initiates with publication to preview at step 228, agents are given
access to search seller and inventive system operator approved property
listings. During the preview period, agents can do their due diligence,
such as review data on the properties, review comparables, visit the
neighborhood, and so forth. Agents also have the opportunity to prospect
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for new listings on a regular schedule, for example once a day, without
concern that an attractive listing might be taken by a competitor.
[74] Agents may search for listings at any time in order to attempt to find
listings that they may have an interest in bidding on. Searches can be done
by searching for specific pieces of information on the listing, such as
listing
price, square footage, beds, baths, condition, etc., or by location with the
use of a map display. Agents will then be shown listings in order from
closest to farthest that meet their criteria. Agents also have the ability to
change the sort to display the listings by highest listing price, listings
with
the most bids, or listings posted most recently.
[75] During the 72 hour preview period, the listing is unlocked at step
234 and agents are able to decide whether they wish to represent the seller
in the sale of the property during the marketing period. During the
preview period, agents review the proposed listings at step 236. When an
agent determined that a listing of a property by a seller is an attractive
representation, the agent registers at step 238 to bid. This information is
sent to the seller who decides at step 240 whether or not he wishes the
agent to bid. This enables the seller to research the would-be agent and
determine whether he wishes to be engaged in the process with that agent.
If the seller decides against allowing the agent to bid, the agent is excluded
by the system at step 242. Alternatively, if the seller approves the agent for
bidding, that information is stored at step 244 and the agent is tagged too
be given access to the bidding process after the preview period expires at
step 246. Such locking out of the unapproved agents conserves system
resources, reducing need for memory, RAM and communications
bandwidth in the inventive system.
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11761 In accordance with the invention it is contemplated that numerous
agents will register to bid at step 238 and that all or a portion of them will
be listed to bid at step 244.
[77] Referring to Figure 7, upon the expiration of the preview period at
step 246, the system marks the seller's listing as open to bid during
searching at step 248, causing it to go live. After going live, when the
bidding turns up in search results implemented in the listings stored in
data bases at step 244, the opportunity of the agents to bid is indicated in
the search results. Agents are then free to send bids with the three bidding
parameters (term of exclusive representation, commission and price bid for
listing) to the seller. In accordance with the invention, it is contemplated
that agents may search for listings stored in databases at step 244. During
this searching process, results may be tagged as being in the preview
period or open for bidding. If an agent decides to bid on a listing the same
may be done in a bid input graphic user interface presented during
searching at step 248.
[78] The real estate agent then has the opportunity at step 250 to bid the
amount of money to be paid to the seller for the opportunity of
representing the seller of the property as a real estate agent. The payment
which is bid is stored at step 252. The real estate agent then has the
opportunity at step 254 to bid the term of exclusivity for the representation
of the property. The term of exclusivity which is bid is stored at step 256.
Likewise, the real estate agent then has the opportunity at step 258 to bid
the percentage commission which he is willing to accept upon sale of the
property in exchange for his work in representing the seller of the
property. The percentage commission which is bid is stored at step 260.
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[79] In accordance with the invention, steps 248 through 260 are carried
out, sometimes substantially simultaneously, for a plurality of real estate
agents interested in the property of the seller. Optionally, at step 262, an
artificial intelligence algorithm may be used to compare bids for the same
property from different agents, as is described more fully below. More
particularly, the artificial intelligence algorithm scores all bids in
comparison to each other to determine the bid or bids which are more or
most advantageous to the seller. If a bid put in by an agent is not less
advantageous than an identified advantageous group, monitoring and
assessment of the bids by the artificial intelligence algorithm is continued
at step 266.
[80] Ultimately, the bid is reported to the seller at step 68, for example at
the end of the bidding period. If a bid put in by an agent is or becomes less
advantageous than the advantageous group, the same is reported to the
agent at step 270 and the agent is given the opportunity, during the
bidding period, to initiate another bid at terms more advantageous to the
seller. If the agent decides to initiate another bid, he is navigated by the
system through steps 250, 252 and 254 and the system proceeds as detailed
above, storing and assessing the bids. Alternatively, if the agent decides to
let the bid stand and not bid again at step 270, the bid is reported to the
seller. The same may occur in the event that the agent has an excellent
reputation and is not trying to get business by underbidding the
competition. Such outbidded bids may optionally be continued to be
monitored for outbidding by the artificial intelligence algorithm.
[81] It is contemplated that the bidding period may optionally be set for
one day, for example, starting at 5 AM and closing 8 PM. At the end of the
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Date Recue/Date Received 2022-03-02
bidding period, the system sends an email to the seller at step 268
Alternatively, in accordance with the invention, bids may be reported to
the seller as they come in, as opposed to being held for a single report to be
sent to the seller after the bidding period has closed.
[82] Referring to Figure 8, after the bidding period has run, the system, at
step 272 checks databases 252, 256 and 260 to determine the existence of
bids. If bids are not found, at step 274 the system reports the same to the
seller at step 276. If the seller wants to begin the process again the system
proceeds from step 276 to return the seller to step 216 where the property
attributes associated with the property are, optionally, amended and the
process described above repeated, or the process is repeated without
amending. Optionally, the system may present the option to proceed
without amending the listing at step 276, whereupon the system proceeds
directly to publish a listing for preview at step 228 and the remaining steps
in the process followed as detailed above. Such direct return to step 228
reduces the need for computer resources on the system and at the local
workstations of the agents and sellers.
[83] If the seller does not wish to continue, the system proceeds to
termination at step 280.
[84] If bids are found at step 274, the system proceeds at step 282 to
present the details of agent bids to the seller based upon the information in
databases 252, 256 and 260. If the seller does not find one or more
acceptable bids the system proceeds at step 284 to present the seller, at step
276, with the option of starting the process over again, and then proceeds
as detailed above.
Date Recue/Date Received 2022-03-02
[85] If acceptable bids are found, the system proceeds to step 286 where
the seller is presented with a graphic user interface for the selection of one
of the bids made by the agent. The system then notifies the selected agent
at step 288. The system at step 290 then intermediates communication
between the agent and the seller with the object of determining a date for
the agent and the seller to do a walk-through of the property to be offered
for sale. Subsequent to such date, the system polls the seller at step 292 to
determine whether the seller wishes to continue the process. If the seller
declines to continue the process with the particular agent, the system
proceeds to present the remaining bids to the seller at step 282 and the
process described above with respect to the steps after step 282 is followed.
[86] If, at step 292 the seller determines to continue with the process, the
system proceeds to step 294 where the system polls the agent to determine
whether the agent wishes to continue with the representation. If the agent
declines, the system proceeds to step 292 where the seller is given the
option to continue the process.
[87] If the agent elects to continue at step 294, the system proceeds to
collect the amount which had been bid for the listing by the agent from the
agent and remit a portion, for example 85%, of the same to the seller. The
operator of the inventive system retains 15% of the amount paid by the
agent.
[88] Referring to Figure 9, optional artificial intelligence processing some
or all of which may be performed at step 262 is illustrated. More
particularly, once the agent has finished inputting his multielement bid at
steps 252, 256 and 260, the system determines at step 100 whether or not all
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of the elements of the bid are better than all competing bids for the same
property or are worse than all competing bids for the same property. This
is a quick simple comparison which is very efficient in its use of computer
storage and power. If the elements of the bid are better than all competing
bids for the same property or are worse than all competing bids for the
same property, this is reported out to the agent who is then given the
opportunity to amend his bid at step 270.
[89] If this simple determination is inconclusive, the system then
proceeds to analyze the quality of the bid for the purpose of scoring on the
basis of a comparison to the other bids and statistical data gathered from
large numbers of bids stored for large numbers of properties on the
system.
[90] More particularly, in accordance with the invention, if, at step 100,
the system cannot determine whether the agent has been outbid by other
agents, that is by determining that the agent has bid more unfavorable
terms than any other agent, the system uses historical data gathered over
time, as more fully appears below.
[91] During data collection, each time an agent makes a bid and a seller
selects from a plurality of bids, the components of the bids and the
selection of the seller are stored in databases 252, 256 and 260. That
historical information is used at step 302 to select bids having identical or
substantially identical payment and term values, where the payment is the
amount paid for the listing to the seller, and the term is the term of
exclusivity sought by the bidding agent. The selection is thus controlled for
payment and term and the system calculates at step 304 the magnitude of
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the difference needed in commission to influence the seller to select on the
basis of commission. This threshold may be determined based on
neighborhood demographics, or the threshold may even be determined for
a particular neighborhood. On the basis of this information the system
then calculates at step 306 a weighting factor for commission. This
weighting factor is then applied at step 308 to the commission offered to
create the commission scoring component.
[92] The historical information is also used at step 310 to select bids
having identical or substantially identical payment and commission
values, where the payment is the amount paid for the listing to the seller,
and the commission is the commission offered by the bidding agent. This
selection is thus controlled for payment and commission and the system
calculates at step 312 the magnitude of the difference needed in terms of
exclusivity to influence the seller to select on the basis of the term of
exclusivity. This threshold may be determined based on neighborhood
demographics, or the threshold may even be determined for a particular
neighborhood. On the basis of this information the system then calculates
at step 314 a weighting factor for term of exclusivity. This weighting factor
is then applied at step 316 to the term sought to create the term scoring
component.
[93] The historical information is also used at step 318 to select bids
having identical or substantially identical term and commission values.
This selection is thus controlled for term and commission and the system
calculates at step 320 the magnitude of the difference needed in payment
to influence the seller to select on the basis of the payment. Likewise, this
threshold may be determined based on neighborhood demographics, or
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Date Recue/Date Received 2022-03-02
the threshold may even be determined for a particular neighborhood. On
the basis of this information the system then calculates at step 322 a
weighting factor for the amount of the payment. This weighting factor is
then applied at step 324 to the term sought to create the term scoring
component.
[94] At step 326, the weighted the terms are scored, for example by
simple addition. In the event that the score of a particular agent is below
that of the other bids by a predetermined threshold, the system at step 328
then reports to the agent that he has been outbid. Optionally, at step 330,
the system can also report if a bid is lower than the average accepted bid
by a second predetermined threshold, enabling the agent to make a bid
which is more likely to be accepted.
[95] Turning to Figure 10, a system 332 for implementing the method of
Figures 5-9 is illustrated. System 332 is based in a publicly accessible
network, such as the Internet 334. The inventive system is hosted by a
computer 336 which comprises a central processing unit ("CPU"), more
particularly CPU 338 in Figure 10. CPU 338 is programmed by software
comprising a plurality of subroutines for the purpose of carrying out the
steps of the method described in connection with Figures 5-9 through the
use of communications execution software 340. Data-gathering software
342 controls CPU 338 in order to implement data-gathering and related
functions. Artificial intelligence and related functions are provided by
artificial intelligence software 344. Software 340, 342 and 344 may be stored
on the hard drive associated with CPU 338. CPU 338.
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[96] The functionality required by the method described in connection
with Figures 5-9 is enabled by the provision of a plurality of databases
dealing with the storage and retrieval of information related to the system,
including the monetary bid, term of exclusivity and commission
percentage information stored at steps 252, 256 and 260. The databases
associated with steps 252, 256 and 260 are used for the storage of
information as well as the outputting of information for the purpose of
executing financial, communications and other aspects of the inventive
method, as well as to serve as an ever-growing source of data for the
artificial intelligence aspects of the inventive hardware illustrated in
Figure
10.
11971 A plurality of seller's smartphones 346 are connected to the Internet
334 by a cellular carrier 348, allowing them to interface with the server 336.
Similarly, a plurality of agent's smartphones 350 are connected by a carrier
to Internet 334. Such connection enables execution of the steps of the
method illustrated in Figures 5-9. Similarly, agents, sellers and others may
connect to the system using a desktop computing system 352 which is
connected to the Internet by an Internet service provider.
[98] Optionally, system 332 may provide for server 336 communicating
with the server 354 of a multiple listing service enabling access to the
database 356 of the multiple listing service.
[99] Referring to Figure 11, in accordance with an alternative
embodiment of the invention, after being presented with the particulars of
bids at step 282, the system proceeds to evaluate the business using
objective rules which consider monetary factors. More particularly,
Date Recue/Date Received 2022-03-02
proceeding upon the assumption that a particular bid, if accepted, will
result in the sale of the property in a short time, bids can be evaluated from
a monetary standpoint. For example, assuming sale at the asking price, net
proceeds to the seller can be calculated by subtracting the price paid by the
agent for the representation and the commission from the selling price.
[100] These objective criteria may be reported to the seller at step 358, for
example in the form of the report of Figure 12 which shows an objective
monetary comparison of three different bids. More particularly, the
monetary cost of the three different bids is laid out for easy evaluation. As
illustrated, in the first bid, the commission rate is only 5 1/2%, but the
agent
is only paying $5000 for the listing, resulting in a cost of sale of $30,750.
In
comparison, even though the second bid has a substantially higher interest
rate of 6%, and the homeowner is receiving $10,000 for the listing, there is
a lower cost to sell. The third bid presents an even more favorable scenario
for the seller where a 4% commission is being taken with a bid of $2500 for
the right to represent the seller, resulting in a cost to the seller of
$23,500.
In order to assist in comparative evaluation the periods of exclusivity are
also presented and the advisability of a longer or shorter period of
exclusivity may be judged more easily.
[101] Optionally, in accordance with another embodiment of the
invention, the seller may be presented with multiple listing service data on
the agent, perhaps going back three or seven years. Such data may include
the number of houses sold by the bidding agent 1) in the neighborhood of
the seller's property, 2) in the price bracket of the seller's property, 3)
within the bid period of exclusivity, 4) within a shorter-term, and/or 5)
other factors deemed relevant. The consent of the bidding agent may be
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Date Recue/Date Received 2022-03-02
needed for some or all of this data if it is to be drawn from information
confidentially maintained by the multiple listing service. It is contemplated
that agents would give such consent as a condition to being given access to
the system of the present invention. Once such permission is given, in
accordance with the method of the present invention, information in the
multiple listing service database 316 may be input for presentation to the
seller at step 282 for integration with the monetary analysis of step 358, as
illustrated in Figure 11. As shown in Figure 10, information and database
356 is made available over the Internet by the server 354 of the multiple
listing service.
[102] While illustrative embodiments of the invention have been
described, it is noted that various modifications will be apparent to those
of ordinary skill in the art in view of the above description and drawings.
For example, one or more of the features disclosed in connection with the
embodiment of Figures 1-4 may, optionally, be implemented in the
embodiment of Figures 5-10. Such modifications are within the scope of
the invention which is limited and defined only by the following claims.
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