Home News HomeLister lets you skip the realtor and keep the commission – TechCrunch

HomeLister lets you skip the realtor and keep the commission – TechCrunch

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Most realtors charge a commission (often up to 6% of the home’s selling price) for listing and selling a home on behalf of the homeowner.

For a home that sells for about $ 170,000, this fee totals just over $ 10,000. For a home that sells for $ 500,000, that’s $ 30,000. And for a home that sells for $ 1,000,000, the fee is $ 60,000. You get points. Depending on the amount of equity the seller has, commissions can make up a significant portion of the income from home sales.

Taking into account the housing market, which is out of stock and homes are popping out of the market, it may be even more difficult to swallow giving up a lot of money on commission. There are many low-fee sites like Redfin, but many homeowners want the option to list and sell their homes with the help of real estate professionals.

come in HomeLister, Digital brokerage and real estate sites. Homeowners can list and sell their properties online with support. The ultimate goal is to give sellers more control over the selling process and provide a way to retain as much capital as possible. HomeLister says that by automating the sales process, it can “fix the cost of sell-side agents”, save an average of $ 21,000 for sellers, and reduce the median number of days in the market from 16 to 9 days. ..

After his experience selling homes, CEO Lindsay McLean founded a company based in Santa Monica, California in 2015 with lawyer and real estate broker Jennifer Stein.

“”I worked with a top-notch agent who helped me buy a house. But I noticed that I’m doing most of the work for sale. Displaying preparations, adjusting show times, investigating local home comps, setting initial selling prices, etc., “McLean recalls.

Her home was sold within a week at the price she set for a double-ended transaction, allowing the realtor to maintain a full 6% commission.

“In the end, I ended up writing a commission check that was more than 25% of my equity at closing. Software engineer and real estate developer McLean told TechCrunch.” My agent was great. But 15 hours of work wasn’t worth 25% of my capital. It felt incredibly unfair and I was shocked by the economics of traditional agents on sale. . I worked hard to build that fairness. “

The traditional model of agents that receive a 6% commission is considered obsolete by many. So it’s no wonder homeowners and investors are attracted to the company as well.To date, HomeLister says it has With a total transaction of over $ 1.9 billion, we sold over 3,750 homes and helped our clients save over $ 77.5 million in stock.And today, the company announced that it has procured it. A series A round of funding jointly led by M13 and Homebrew has raised $ 10 million, bringing the total amount raised to date to approximately $ 15 million.

HomeLister currently operates in 17 states and plans to expand to 6 other states, including South Carolina.Illinois and Michigan — Ultimately, my goal is to be in all 50 states.

So how does it work? If the homeowner wants to list their homes through HomeLister, enter the address on the site and the system will guide you through the listing process. Customers who choose the basic plan list for free and pay $ 599 when the house sells. The company also offers premium and platinum plans up to $ 2,999, depending on the level of support they want. You can a la carte services such as transaction management, 3D walkthroughs, professional photography, having agents review offers and process all sales documents, or online advertising campaigns. All its services are completely online and virtual.

“The main difference from the premium package is that a real estate expert will guide you from start to finish, including home pricing, strategy planning, and offers and questions. It includes negotiations, etc., “says McLean.

The company refused to reveal tough revenue figures, but McLean said it had “more than tripled” revenue from 2020 to 2021 and gained 450% market share over the same period.

In addition to geographical expansion, HomeLister plans to enhance its current service and provide additional services to the site, such as title service and automatic transaction management.

“Currently, most sellers compare us to traditional realtors. A low-service, flat-rate MLS provider will list you before you leave, “says McLean. “HomeLister is the best of both worlds. You can get as much help as you want through the process and you are guaranteed a flat rate related to the amount of work we do, not the price of your home. “

Image credit: CEO and co-founder Lindsay McLean / HomeLister

In a written statement, M13 partner Karl Alomar said in a written statement. In recent years, it has been a strong seller market for real estate, and demand has far exceeded supply.

“This rapid sales period underscores the inefficiencies and cost implications of traditional intermediary services. This is the main model of confusion,” he said. “HomeLister attacks this issue with a thoughtful and valuable digital solution that has great traction for sellers and great room for expansion and growth.”

Homebrew partner Satya Patel pointed out that real estate is often the largest asset for most people.

“HomeLister will redesign the home sales process to help sellers retain as much capital as possible, which should ultimately help buyers,” he said in writing.

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