Earlier today it was announced that Keith Rabois–a venture capitalist with Khosla Ventures and the former COO of Square–is working on a startup that hopes to make selling your home as easy as a few clicks. The codename for the project is Homerun.

“For most people, homes are their biggest asset and it’s completely illiquid,” Rabois said. “This is a really expensive transaction for many people. What we’re going to provide is instant certainty, liquidity and convenience for normal people to sell their homes.”

Rabois hasn’t shared many details, other than a pretty basic flow:

“I’m not going to describe the exact flow, but the general point is you’ll tell us what your address is and confirm your identity, then we’ll allow you to sell your home,” he said. “Obviously there’s a variety of ways you could verify your identity that we didn’t have in 2003, when I originally thought of this idea. Like Facebook Connect.”

This, of course, isn’t a new idea. Many companies have tried to improve the process of buying and selling homes by going online. But it’s a space that hasn’t seen a lot of innovation. I’m particularly interested because I work in real estate and it’s always struck me as a lumbering archaic industry.

So when a name like Keith Rabois announces that they’re working on solving a problem in this space, I get excited about what might come about.

This morning I woke up to a tweet from somebody asking me why–despite my obvious love of cities and real estate–do I seem more influenced by venture capitalists on my blog. He wondered if it was because of a lack of public/online real estate thought leaders.

I responded by saying yes; that’s part of the reason. I honestly can’t think of one real estate developer that hosts a personal and regular blog. (If you know of any, please pass them along.) Whereas I can’t think of a major VC who doesn’t blog.

Sure there are other real estate professionals who blog, but a lot of those sites just feel like giant lead generation tools and those aren’t enjoyable to read. I’m trying not to create that kind of blog. The trust of readers is more important to me than trying to promote my businesses.

But the other reason I often cite venture capitalists and “tech” centric topics is because I believe in cross pollinating industries. I don’t believe the world operates neatly under silos and neither should our minds and businesses. I’ve also argued many times before that with software eating the world, nobody should be ignoring technology.

At the same time, the consumer web feels to me like this profound social force changing the way people live and interact with each, which, if you think about it, is what cities have always been about. And so I see all kinds of interesting overlaps.

Fred Wilson (New York VC) wrote a post on his blog this morning called The Bubble Question. In it, he talks about how everyone asks him whether or not there’s a tech bubble, which he has been asked for the past 4 years now. It reminded me of the debates that are also happening in the real estate community (particularly in Canada).

The thesis of his post is this:

I learned in business school that the multiple of earnings one should pay for a business is roughly the inverse of interest rates.

In other words, as interest rates drop, people are willing to pay more for the business or asset in question. And it’s because they can’t find the yields anywhere else.

The same phenomenon, you could argue, is also happening in the real estate space. Typically, income producing real estate assets are assessed using capitalization rates (or cap rates), which is defined by the Net Operating Income (NOI) of the property (revenue - expenses, but excluding financing costs), divided by the price of the property.

The real estate equivalent of what Fred is talking about is cap rate compression. When cap rates drop it means you’re paying more for the same amount of yield (or NOI). One of the reasons that might happen is because people are anticipating that the asset will appreciate. But it could also be because interest rates are so low that investors will take whatever returns they can get. 

Earlier today it was announced that Keith Rabois–a venture capitalist with Khosla Ventures and the former COO of Square–is working on a startup that hopes to make selling your home as easy as a few clicks. The codename for the project is Homerun.

“For most people, homes are their biggest asset and it’s completely illiquid,” Rabois said. “This is a really expensive transaction for many people. What we’re going to provide is instant certainty, liquidity and convenience for normal people to sell their homes.”

Rabois hasn’t shared many details, other than a pretty basic flow:

“I’m not going to describe the exact flow, but the general point is you’ll tell us what your address is and confirm your identity, then we’ll allow you to sell your home,” he said. “Obviously there’s a variety of ways you could verify your identity that we didn’t have in 2003, when I originally thought of this idea. Like Facebook Connect.”

This, of course, isn’t a new idea. Many companies have tried to improve the process of buying and selling homes by going online. But it’s a space that hasn’t seen a lot of innovation. I’m particularly interested because I work in real estate and it’s always struck me as a lumbering archaic industry.

So when a name like Keith Rabois announces that they’re working on solving a problem in this space, I get excited about what might come about.

This morning I woke up to a tweet from somebody asking me why–despite my obvious love of cities and real estate–do I seem more influenced by venture capitalists on my blog. He wondered if it was because of a lack of public/online real estate thought leaders.

I responded by saying yes; that’s part of the reason. I honestly can’t think of one real estate developer that hosts a personal and regular blog. (If you know of any, please pass them along.) Whereas I can’t think of a major VC who doesn’t blog.

Sure there are other real estate professionals who blog, but a lot of those sites just feel like giant lead generation tools and those aren’t enjoyable to read. I’m trying not to create that kind of blog. The trust of readers is more important to me than trying to promote my businesses.

But the other reason I often cite venture capitalists and “tech” centric topics is because I believe in cross pollinating industries. I don’t believe the world operates neatly under silos and neither should our minds and businesses. I’ve also argued many times before that with software eating the world, nobody should be ignoring technology.

At the same time, the consumer web feels to me like this profound social force changing the way people live and interact with each, which, if you think about it, is what cities have always been about. And so I see all kinds of interesting overlaps.

Fred Wilson (New York VC) wrote a post on his blog this morning called The Bubble Question. In it, he talks about how everyone asks him whether or not there’s a tech bubble, which he has been asked for the past 4 years now. It reminded me of the debates that are also happening in the real estate community (particularly in Canada).

The thesis of his post is this:

I learned in business school that the multiple of earnings one should pay for a business is roughly the inverse of interest rates.

In other words, as interest rates drop, people are willing to pay more for the business or asset in question. And it’s because they can’t find the yields anywhere else.

The same phenomenon, you could argue, is also happening in the real estate space. Typically, income producing real estate assets are assessed using capitalization rates (or cap rates), which is defined by the Net Operating Income (NOI) of the property (revenue - expenses, but excluding financing costs), divided by the price of the property.

The real estate equivalent of what Fred is talking about is cap rate compression. When cap rates drop it means you’re paying more for the same amount of yield (or NOI). One of the reasons that might happen is because people are anticipating that the asset will appreciate. But it could also be because interest rates are so low that investors will take whatever returns they can get.