In the United States, 25,000 residential real estate transactions are closed every day. Each of these complex deals requires the participation of a broad group of businesses: law firms, real estate agencies, lenders, title and home insurers, and a host of other ancillary service providers for home furnishing, remodeling, power supplies, telephone, cable TV, newspapers, and alarm systems. While a home buyer views a closing as a single (and often stressful) event, none of these providers does. Each supplies its own service, and it is up to the buyer, sometimes with the help of a realtor, to bundle them all together. Our research shows that much of the stress for home buyers stems from this lack of integration. At the moment, though, no one sees residential real estate closings as a service in itself.

Therein lies the opportunity. Just as The Home Depot emerged as a new channel for home remodelers, and Staples meets the needs of the home office, there is a huge opportunity to serve the home buyer better at the time of purchase. In 1995, real estate closings generated $110 billion in revenues. This is the equivalent to roughly $20,000 for the average consumer, not including...