Discovery for real estate software development at RealtyCandy

If you are looking for real estate software development by a team that has tons of experience writing software for IDX users, members of MLS areas, and real estate in general, you should go to TheRealEstateSoftwareCompany.com.

That link will send you right back here.

RealtyCandy's development team has been writing great software for Realtors for over 12 years. We do everything from CSS styling customizations and simple javascript solutions on a website, to full custom web applications that provide home valuations or list properties for real estate investors.

Customers often ask us "how much does it cost to make my real estate software?". Sometimes we can give a nice quick answer like $150 or $500. When we are working on a big project we need to do something called "discovery".

 

What is Software discovery?

Software discovery is something done by most custom software developers. It is simply the process where we build out a proof-of-concept of your software. If the application preview we build for your business is something you like, you can either have us build it out for you, or you can take what we have made and get someone else to build it for you.

I have told people that "discovery" for real estate software is very similar to the process that people who build custom homes go through when building a custom home today.

Many homeowners hire an architect to design the house, and then get someone to render the house into a 3D rendering where the new homeowner can look at the design in 3D and make decisions about the house like rooflines, stucco, and floorplans before the construction even starts.

 

Why do Software Discovery?

In the real estate software space, doing software discovery allows our customers to get a proof of concept for their project. We do some basic work for them. Maybe 20-50 hours of coding and software development, to get them something that looks like a working prototype.

Once we have a basic prototype, the client can either have us continue on the project, (and we can normally give them a MUCH more accurate estimate of time to market, and cost to complete) or they can take what we have made for them, and take it to their own developers or contract someone else to finish the project.

Discovery is an important step to seeing how viable the project is.

Almost any idea looks great on a whiteboard. Once you have an MVP (minimal viable product), you can start sharing it with prospective clients and shareholders and see how much appetite there is for the finished project.

Here is one of my favorite quotes about the execution of an idea from the book "Getting Real" by Basecamp/37Signals:

It’s so funny when I hear people being so protective of ideas. (People who want me to sign an nda to tell me the simplest idea.)
To me, ideas are worth nothing unless executed. They are just a multiplier. Execution is worth millions.
Explanation:
Awful idea = -1
Weak idea = 1
So-so idea = 5
Good idea = 10
Great idea = 15
Brilliant idea = 20

No execution = $1
Weak execution = $1000
So-so execution = $10,000
Good execution = $100,000
Great execution = $1,000,000
Brilliant execution = $10,000,000

To make a business, you need to multiply the two.

The most brilliant idea, with no execution, is worth $20. The most brilliant idea takes great execution to be worth $20,000,000.

That’s why I don’t want to hear people’s ideas. I’m not interested until I see their execution.

—Derek Sivers, president and programmer, CD Baby and HostBaby.

Why do you charge to do Software Discovery?

ChatGPT says that 70%-90% of the jobs given to typical architects never actually get built.

I would venture to say that is probably similar to real estate software projects.

We have a lot of people who want us to build a solution for their needs and they assure us that either they will refer tons of business to us, or scores of other people in the real estate sector will be elated to use our solution.

While I have a great appreciation for the power of positive thinking, we have found that we don't have the resources to build out all of the great projects people can think of. So we charge for our time and development costs.

This actually isn't a get-rich-scheme for us. We would normally rather work on our own projects that we are excited about. Getting paid by clients to develop their software shows how interested our client is. It is a filter. If this project isn't worth a few thousand dollars for our customers, it isn't worth us spending tens or hundreds of hours building.

What Happens During Discovery:

  1. Requirement Gathering - Collect all functional and non-functional requirements.
  2. Prioritize Requirements - Determine the importance of each requirement.
  3. Technology Stack Selection - Choose the appropriate technologies and tools.
  4. Prototype Development - Create preliminary designs and/or models. (Canva, Wireframes, Userflows, HTML mockups, Clickable HTML models)
  5. Cost and Time Estimation - Estimate the project's budget and timeline.
  6. Risk Assessment - Identify and plan for potential project risks.
  7. Planning and Roadmap Development - Outline the project phases and milestones.
  8. Documentation - Document all findings and plans from the discovery phase.
  9. Stakeholder Approval - Obtain approval to proceed with development.

Project Tiers & Ongoing Costs

Tier Features Development Cost Ideal for
Basic Real Estate Web App Property listings, basic search filters, contact forms Generally ranges from $5,000 to $20,000 Small real estate agencies or startups with limited budgets
Mid-Level Real Estate Web App Advanced search filters, interactive maps, user registration, property suggestions, simple admin dashboard Typically between $25,000 to $50,000 Growing real estate businesses that need more functionality
Advanced Real Estate Web App High-end search algorithms, detailed property pages, virtual tours, CRM integration, analytics, complex back-end with multiple user roles Can range from $50,000 to $100,000 or more Large real estate firms or tech-focused companies requiring a comprehensive online platform

Factors Influencing Cost:

  • Design Customization: More bespoke, high-quality design elements increase costs.
  • Technology Stack: Using advanced technologies or frameworks can affect the cost.
  • Integration and Scalability: Costs increase with the need for integration with other software (like MLS systems) and scalability to handle more listings or traffic.
  • Maintenance and Support: Ongoing costs for maintaining servers, updating content, and ensuring the app remains functional and secure.

Ongoing or monthly costs for maintaining and operating a real estate web app are essential to factor into your budget, as they ensure the app remains functional, secure, and up-to-date. Here’s an overview of typical recurring costs:

1. Hosting

  • Shared Hosting: Could be as low as $10 to $30 per month for smaller or less complex sites.
  • Dedicated or Cloud Hosting: For larger, high-traffic web apps, costs can range from $500 to $1000 or more per month, depending on resource needs and traffic volume.

2. Maintenance and Updates

  • Regular Updates: Including security patches and software updates to keep the web app secure and functional. Depending on the frequency, this could cost anywhere from $100 to $1000 per month.
  • Bug Fixes and Improvements: Addressing any issues that arise and making minor improvements to enhance functionality or user experience.

3. Technical Support

  • Support Services: Ensuring there's technical support available for users or backend issues. Depending on the level of support required, costs can range from $250 to over $1000 per month.

4. Security Measures

  • SSL Certificate: Essential for security, particularly for protecting user data. Costs can range from free (basic protection) to over $100 per year for advanced security features.
  • Backups and Security Monitoring: Continuous monitoring and regular backups to prevent data loss and mitigate security threats, typically costing $50 to $200 per month.

5. Analytics and Reporting

  • Tools Subscription: Using analytics tools to track website performance and user engagement, which can range from free basic tools to advanced systems costing over $100 per month.

Typically, after we build an app, we host and maintain it. That costs about $500 - $2500 per month depending on the complexity of the site, and the amount of server resources it uses.

How can I get RealtyCandy to do software discovery for my real estate idea/project?

Contact us using our chat button below or go to our Contact Us page and just let us know you are interested in visiting with us about your project. One of our Product Architects will reach out to you.

One last thing.

I love this PDF book: https://basecamp.com/shapeup/shape-up.pdf
This is a great book about software development. I highly recommend that you read pages 129-133 about showing progress. I think this explains the discovery process in a way we can all understand; cooking dinner for friends.