Offerbinder pitch

OfferBinder
Make Better Real Estate
Decisions
7/30/2016 OfferBinder - Confidential 2014

Overview
• About us
• Market Opportunity
• Challenge
• Solution
• Target customers
• Go-to-Market
• Business
• Current Status & Roadmap
• Summary

OfferBinder – About us:
• Ben Yip: Co-Founder
– Senior Director and Architect at SuccessFactors, an SAP
company
• Founding engineer at SuccessFactors, acquired by SAP in 2012
• Conrad Kong: Co-Founder
– Senior engineering and management roles at Xilinx,
Synopsys
• Seasoned software professional with multiple successful
startups
• Karl Lee: Advisor
– Broker/Owner, Realty World Results Pros
– MLS Listings, Inc/Director – Treasurer

OfferBinder – Our Mission
• Enable free flowing of information in real
estate transaction; helping everyone make
better decisions

Why Real Estate?
0 0.5 1 1.5 2
Purchase & Sale
Home Financing
Home Maintenance &
Improvement
Total Revenue ($ Trillions)
Total Revenue ($T)
Source: Zillow Annual Report, 2013
Large Opportunity in an underserved market still primed for online
disruption
0 2 4 6 8 10 12
Purchase & Sale
Home Financing
Home Maintenance &
Improvement
Advertising Revenue ($ Billions)
Advertising Spend ($B)

Large Opportunity
• 2013 US Real Estate Advertising Spending : $27.3B
(+9.7% from 2012) [2013 Real Estate Advertising Outlook from Borrell Associates, Inc.]
– $9.1B spent on Residential Advertisement (Zillow Est)
– Technology penetration is still early and low
• Zillow + Trulia annual revenue < $500M
• Large Adjacent Markets
– Annual Marketing spend for Mortgage & Home
Improvement is more than $20billion (source Zillow)
• Technologies and customer expectation are ripe to
force disruption
– Real estate consumers expect to be connected in real
time for all aspects of real estate activities
– 90%* of real estate search starts on the internet
* Source: http://www.realtor.org/reports/highlights-from-the-2013-profile-of-home-buyers-and-sellers

Current Industry Challenges
• Real Estate End-to-End Process is fragmented
– Lack of organization and transparency to consumers
– Loss of valuable offer negotiation data means lost
business opportunity to agents
• Existing Marketing Solutions are Expensive and
Ineffective
– 15-20% of active agent’s income spent on marketing
– Leads from print flyer’s and internet account for less
than 7*% of total sales
• Agents have every few tools to differentiate
– Agents websites and listing data no longer compelling
– MLS provides 400 characters to describe a property
* Source: http://www.realtor.org/reports/highlights-from-the-2013-profile-of-home-buyers-and-sellers

Current Real Estate “Cloud”
Fragmented and distributed
Buyer
Agent
Buyer
Buyer
Buyer
agent
Buyer
Agent
Buyer
Listing
Agent
Seller
During Offer Negotiation

Current Real Estate “Cloud”
Fragmented and distributed
Buyer
Agent
Buyer
Buyer
Buyer
agent
Buyer
Agent
Buyer
Listing
Agent
Seller
Winner
After Offer Negotiation: Cloud gets Cold!

OfferBinder – Our Solution
• We organize offer negotiation process in the cloud:
– Flexible and fully-customizable negotiation format
• Conventional Sale, Open Bid and True Sealed Bid sale
– Bring transparency and enable legal compliance
– Everything still governed by conventional industry practices
• First to collect, analyze and bring active & past Offer
Negotiation Data to the PUBLIC
• Enables agents to provide live updates and custom contents
– Keep potential buyers interested before they submit offers
– As marketing materials to generate new leads after the listing is sold
• Making a leap with Effective & Targeted Marketing
– Industry’s first analytic engine that combines offer negotiation data with
listing data
– Provide the MOST up-to-date heat map of the market
– Clearly identify people who are ready to buy/sell; Better leads!!!

Listings Agent “Cloud”:
emails, VMs, offers and
listings documents in
laptops, cloud storage
and file cabinets
OfferBinder Cloud
Seller
OfferBinder
Cloud
Offer Negotiation
During Offer Negotiation
Buyer
Agent
Buyer
Agent
Buyer
Agent
Buyer Buyer
Buyer
Listing
Agent
Analytic
s
Analytic
s

After Offer Negotiation: Cloud gets HOT!
Listings Agent “Cloud”:
emails, VMs, offers and
listings documents in
laptops, cloud storage
and file cabinets
OfferBinder Cloud
Leverage Information for Better Decisions
Potential
Buyers
Potential
Sellers
OfferBinder
Cloud
Marketing & Lead
Generation using
Analytics
Leads
Leads
Leads
Leads
Buyer
Agent
Buyer
Agent
Buyer
Agent Listing
Agent
Buyer Buyer
Buyer
Seller
Other
Agents
Other
Agents
MKT
MKT
MKT
MKT

How do agents use OfferBinder?
• Use OfferBinder to provide extra contents and live listing updates
before offers come in
– Provide exclusive contents and updates to increase buyer’s interests
– Use it as marketing materials during open house to engage clients after
they leave the property
– Leads generated from this have much higher conversion rate
• Use OfferBinder to negotiate and present offers to seller
– Accept/Decline/Counter/Docs/Emails/Notifications
• Use OfferBinder After the house is sold
– Everyone wants to see offer data; that is what brings in new clients.
Agents should use their sold listings to keep working for them!!!
– More contents can be added after sale to keep clients coming back
• OfferBinder also helps buyer’s agents
– Our real time OfferStrength calculator helps buyer’s agents make better offers
• OfferBinder helps everyone to make better decision
– Industry’s first analytic engine that combines offer and listing data

Target
Customers
Home Buyers &
Sellers
-Offer Information
-Research for agents
Agents & Brokers
-Manage Offer and negotiate
-Marketing and Lead
Generation
Mortgage &
Financial
Services
-Leads
Home Improvement
-Leads

Available customers
• Active Agents & marketing spending:
– Est. 20% of realtors does 80% of the transactions (broker’s est)
– Top producing agents spend $4-$5K per month on marketing
– Zillow has 57K premier agents; spending ~$320/m (Q2/14)*
– Trulia has 74K paying agents; spending ~$200/m (Q2/14)*
• Active Agents Technology Spending (source Trulia)
– $75 website, $75 CRM, $37 paperless transaction (per month)
– $35 CMA, $53 Email & Print Marketing SW (per month)
7/30/2016 OfferBinder – Confidential 2014
0.17
0.4
1.1
2.1
0.00 2.00
NAR Membership
(Realtors)
# of agents and
brokers
Million (*source NAR)
National CA
90
600
5000
K 2000 K 4000 K 6000 K
# of transactions
National CA Bayarea
Thousand

Go-to-Market
• Bottom-up: Built-in viral effect
– One hot listing can generate 100 users and
agents to sign up through listing documents alone
– Every listing also attracts new buyer’s agents to
use OfferBinder to manage their listings next time
they list properties
– As Open houses marketing tools: we can reach a
lot of potential buyers/sellers for free
– Encourage listing agents to promote (other
channels)
• Top-down approach: MLS/NAR/Large broker
– MLS and NAR to sell to large brokers

Growing our customers base
• Offer Data is compelling, everyone wants to see it
• Every open house is a marketing opportunity for us
• Our own Analytics engine can identify our potential
customers
– Top listing agents/brokers in the area and all open
houses
– Use Sold/Asking price ratio to identify listings with
multiple offers
– Use MLS data to identify agents who are relatively new
to the business and ready to go to the next level

Market Adoption Challenge
• Overcoming following concerns of Listing Agents
– Reluctance to adopt latest technology
– Perceived de-emphasis of agents human touch
– Clinging to opacity as perceived business edge
– Privacy concerns to sharing offer data
• Distributed nature of MLS agencies
– Agents are independent minded contractors
– No technology mandates coming from NAR, MLS or
Brokers
– Different MLS might have different rules and
regulations

Competitive Advantage
• OfferBinder is the only source for offer data
• OfferBinder is the only platform that enables
agents to translate their offer data into market
differentiation
• OfferBinder can generate much better leads
• OfferBinder game-changing analytics engine
provides the most accurate heat-map of the
market because we have real-time offer data

Customer feedback:
• “I get it and I understand this is the new way to do business” –almost eveyone
says it.
• “When can I start using it?” - An agent with average amount of business
– “It is a productivity boost and this technology allows me to differentiate
from other listing agents”
– “I can imagine using this tool to check the offer status every time I take a
client to see a new property”
• “Other agents don’t believe their offers are sealed, I need to a way to prove to
other agents I do things fairly” – One of the top listings agents in the country
• “I will not use your tool because it deemphasize agent’s role and makes it like
buying stuff from Amazon. But I really like the marketing and leads generation
aspects of your offering” – A traditional agent who get most business from
referral
• “I will use it if you can show to me that I am getting more business”- an up-
and-coming agent who wants to go from 50 deals/yr to 100 deals/yr

Demo
• Offer Management
• Open House Marketing Tool
• Analytics

• Spencer Rascoff, Zillow CEO
“I believe that eventually most of the $10
billion a year that agents spend to market
themselves and their listings will move
online, and most of it will be spent on
whichever online service has the largest
audience.”

Summary
• What makes OfferBinder special?
• For the first time ever:
– Real Estate Agents can manage and
negotiate offers in the cloud;
– Buyers and sellers can see offer details during
and after negotiation
– Industry-first analytics platform that combines
listings and offer data
– Agents can get more business while saving
time

Offerbinder pitch

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