Outsource Realtors to India?

I just saw this article on how a company is trying to outsource the local news. They are looking for a journalist in India to do the local stuff. This is a real story. I guess it was bound to happen. However, this made me think. Could they now outsource the functions of a Realtor? Or, mortgage broker? Given the technology we have today could the entire purchase transaction be outsourced? I mean how much of the job really entails physically having to be in the US? Could a US based transaction coordinator and India based Realtor/Lender be next?

Lets see how this could potentially work.  First they fill an online mortgage application, then talk with an out-sourced lender over the phone on loan programs and get thoroughly pre-qualified. The second step would then be to go to a site like Zillow and find a bunch of properties to explore. Then they drive around looking for a property and narrow down a few they want to make an offer on. They touch base with the US based transaction coordinator for hands on and real time information.

Once they have a property they want to make an offer on, they use a tool like Skype to do a video call with a Realtor in India, who then writes the offer. The other Realtor is in India anyways, so the two would do their negotiations through local means. The offer is accepted, the contract is signed via e-mailing back and forth.

Then the contract is sent back to an out-sourced lender in India, who has already pre-qualified and approved the borrower via an on-line application (earlier). After an accepted offer the lender submits the loan documents to processing and underwriting in India. The transaction coordinator would ensure the home inspection and walk through meet contract terms. The transaction closes with all parties satisfied.

As far as commissions and compenstion are concerned, the US transactio coordinator would make a flat fee $500 or so per file, the Indian Realtors would receive the standard fees but in Rupees. So, lets say 6% was due on a $200,000 house, the Indian Realtors would receve Rs. 12,000. This is equivalent to $291 (see currency converter). Remember an average Engineer with limited experience makes US $634/month in India.

I must add Citibank already has processing in India, so we’re almost two-thirds there in terms of lending functions, why couldn’t a bit of innovation outsource our functions to India? Also, if you’ve never used it, Skype is a wonderful tool for doing international video conferencing.

So are we there yet?

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