Real estate tech firm Homie plans to grow in more cities with its Series B funding amounting to US$23 million.
The traditional way of buying and selling house properties on your own can save you some cash and hiring an agent and paying them with 6% commission and ends up doing most of the work takes a lot of time and energy.
Homie, founded in 2015, is a real estate platform that combines technology, software, and customer service with a mission to save customers thousands in fees and commissions. Buyers and sellers get more transparency and process control and still get all the support they need from an entire team of licensed agents, lawyers, and experts.
Homie has announced raising $23 million Series B capital financing. The company stated its plan on exploring by opening three new markets and will begin a Vegas launch in March with its Series B funding.
“Buying or selling a house is expensive and time-consuming because of all the different companies you have to work with,” Johnny Hanna, co-founder of Homie, said in a statement.
The traditional 6% commission affiliated with the home buying system has been in place for decades.
Nevertheless, it has also been questioned by the Department of Justice, which recently objected to a petition by the National Association of Real Estate Agents to dismiss a number of civil lawsuits against the company.
While most real-estate packages now cater to digital clients, Homie takes a different approach, hiring real estate agents who will assist them through the process but are not commissioned. Instead, dealers get a $1,500 flat fee, and buyers and sellers are secured with built-in legal assistance in the negotiation process.
“Communication becomes a game of telephone because of all the parties involved. We are disrupting the traditional model and saving customers thousands of dollars by combining technology, a team of experts, and a one-stop-shop for real estate. Technology has changed everything except for the real estate business model. That time has finally come,” Hannah added on his statement.
According to Homie’s website, the business has grown to more than 120 members, all of whom share the same enthusiasm for improving home buying and selling. Homie has proven to the skeptics that buying and selling a house can be simple and inexpensive while making a major difference in people’s lives.
In an interview with TechCrunch, Johny Hannah stated that he will be looking at the Vegas as well as the Dallas area for the company’s expansion. The ability to expand is also a potentially good indicator of the success of the company.
Some other places next year where we could see Homie pop up include Boise, Seattle, Colorado Springs, and Nashville.
Homie’s other new news this year is the incorporation of adjacent real estate services such as Homie Loans ™, Homie Title ™, and Homie Insurance ™, all of which serve to simplify the process for customers
Homie has claimed that it has saved $55 million in commissions, with revenue growth of 150% over the past year.