HomeEgg: A Behind-the-Scenes Look

December 22, 2017

HomeEgg: A Behind-the-Scenes Look

HomeEgg is a B2C2B digital home management platform that is radically changing the residential real estate paradigm by empowering homeowners and redefining ecosystem linkages. Prioritizing the capabilities and features of HomeEgg’s first release was exciting work because the spectrum of home management topics is so vast (i.e., home value, mortgages, home assets, local market trends, energy, maintenance, home systems, taxes, insurance, home improvements, etc.)

So this was our nut to crack: Determine what home management elements matter most to homeowners and bring those elements together in a logical, innovative and engaging way.

We approached this challenge by segmenting the B2C2B concept and solving for the B2C component first. This meant focusing squarely on enabling the homeowner. And, if we do this right, the C2B component will flow naturally.

Guided by our market research, we found:

•   77% of homeowners do not have a good pulse on how their home is performing financially. 63% of homeowners cited ‘core financials’ as their greatest home management priority.

•   Homeowners do not have a firm grasp on how they can influence the financial performance of their home.

•   Home financial information is scattered in all sorts of places and each with their sub-plot of challenges.

•   Most importantly, homeowners lack the digital tools to take control of their home’s financial performance.

Thus, our narrative was clear. Home financial performance is ‘a thing,’ and it needs to be serviced. But the biggest obstacle may be that homeowners themselves don’t fully understand the need because they’ve never experienced the benefits in any meaningful way.

HomeEgg v1.0 was architected to solve this challenge head-on. We built an integrated, scalable data model that serves as HomeEgg’s platform foundation and delivers essential home financial performance metrics derived from a mash-up of primary home wealth attributes.

Below is a behind-the-scenes look at HomeEgg v1.0’s core capabilities and features and detailed justification:

•   Total Home Equity: HomeEgg gives homeowners direct visibility into their overall home equity position at any point in time and provides intelligent recommendations and alerts that help the user build wealth, find cost savings and prevent value seepage. For the first time, this gives homeowners the ability to track and manage their total home equity position as carefully as they do other significant financial investments and assets (i.e., 401K, brokerage accounts, insurance, tuition plans, cash holding, and even credit card, airline and hotel point balances, etc.).

   Home Value: HomeEgg gives homeowners the unique ability to build, manage, trend and forecast their home value using inputs from national automated valuation model (AVM) data, home improvements, and other ad hoc, perception-based factors. This feature solves today’s pandemic where homeowners are hostage to flawed public website home value estimates with no opportunity to give input. It also helps the homeowner defend against realtors who coach them toward lower home values so they can sell the home as quickly as possible. For example, a homeowner that receives a home value estimate of $400,000 from a public website, but feels certain their home is worth $425,000, can use HomeEgg to build their home value estimate and associate their justification for this higher value.

   Home Improvements: HomeEgg helps homeowners demystify the value of their home improvements for both past and future projects. This is a dominant feature. It enables homeowners to maximize wealth creation opportunities by trading-off between home improvement project types. For example, a bathroom addition is estimated to have a recoup value of 57%, while the attic insulation project has a recoup estimate of 113%. For a homeowner with a $10,000 project budget, the bathroom would return $5,700, while the attic insulation project would yield $11,300. This $5,600 difference is a real example of how HomeEgg helps homeowners maximize wealth creation by making informed home improvement decisions.

•   Home Mortgage: HomeEgg’s home mortgage features offer a robust set of benefits to homeowners by creating visibility into tens – even hundreds – of thousands of dollars in new wealth and cost savings opportunities. And it’s a nightmare scenario for lenders who deliberately shield homeowners from opportunities to improve mortgage payoff performance. Beyond the basics of tracking mortgage balances, scheduled and actual mortgage amortization (payoff), HomeEgg uses additional principal payment data to help the homeowner see how their addition principal payments are saving interest and accelerating the payoff of their mortgage. For example, A homeowner who is early into paying their $500,000 mortgage can save upwards of $20,000 in interest by paying an extra $50 toward their monthly principal payment and can reduce the number of payments by more than three years.

   Home Assets & Equipment: HomeEgg provides a simple way for homeowners to maintain an inventory and track the value of their home assets and equipment. We get that this topic is a bit of a ‘snoozer’ but home assets account for 20 percent of total assets for the average US homeowner. So managing home assets is an essential step toward being a smart homeowner and safeguarding against the unexpected. One technicality here is that home asset value is not included in our total home equity calculation on the basis that home assets are typically non-conveying and have a freestanding path to liquidity.

The appeal of HomeEgg to homeowners and our point of differentiation in the market is how we deliver these v1.0 features and capabilities to the user.

•   We’ve simplified the home profile set-up process with an intuitive data-round-up wizard

•   Our user interface focuses on striping out the complexities and concentrates on consumer simplicity

•   Our analytics are held to a standard of being “relevant, addicting and irresistible.”

•   We’ve engineered an expanding set of high-value notifications and alerts that help guide the user toward financial optimization opportunities

•   Our Send Data Pack feature creates the primary C2B linkages that help the user connect with service providers that are supporting their homeownership and wealth management goals

We’re thrilled that in just its first release, HomeEgg v1.0 is empowering homeowners in these new and influential ways. We know there is so much more to do to scale HomeEgg as leading B2C2B real estate platform.

We invite you to view our earlier ‘Get to Know Us’ postings and continue to follow this series to track our progress toward close the homeowner digital gap. Our next topic will be “2019: What’s on the Horizon for HomeEgg” which will offer a glimpse of our directional platform roadmap.