Faira, an application of Game Theory in Real Estate
summary
Faira builds an online listing and bidding platform that runs a second-price auction, posts full disclosures and inspection reports, and assumes performance risk so sellers get certainty. Platform statistics: thousands of homes, average price ~$500k, ~$5.5M revenue, about 200+ transactions per $1M capital raised vs ~40–50 for peers, and a failure rate of <1% compared with ~5% industry failures. Buyers post a $500 soft commitment, buyers pay 0.5% fee at closing, and reported realized seller prices run ~2% higher (excluding seller fee savings).
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chapters (22)
- 0:00Introduction
- 1:05Consumer Problem
- 6:17Data
- 9:26Traditional Approach
- 17:33Product Demo
- 22:46Making an Offer
- 25:05Back View
- 25:33Credit Card
- 29:05Inspection Report
- 29:40Commitment Protocol
- 34:04Selling Homes
- 34:20Pocket and Sale Agreement
- 36:48Bidding Agreement
- 38:37Second Price Auction
- 40:15Escalation
- 42:02False Bid
- 44:58Linkage Principle
- 45:55Revelation Principle
- 49:53Buyers remorse
- 53:20MLS
- 56:27Offline Offer
- 58:10Communication
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