HomeLister lets you skip a realtor and save commission

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Most real estate agents charge a commission—in many cases up to 6% of the home’s sale price—for listing and selling the home on behalf of the homeowner.

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For a home that sells for about $170,000, that commission is just over $10,000. For a home that sells for $500,000, that’s $30,000. And for a house that sells for $1,000,000, the commission is $60,000. Did you understand. Depending on the amount of the seller’s equity, the commission can be a significant portion of any home sale proceeds.

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The housing market factor, where inventory is in short supply and homes are flying off the market, it can be even harder to swallow the rejection of such a large amount of commission. While there are a number of sites like Redfin that offer lower commissions, the fact remains that many homeowners still enjoy the ability to list and sell their homes on their own, with a little help from real estate professionals.

To come in HomeLister, a digital brokerage and real estate website that empowers homeowners to list and sell their properties online with support. The end goal is to give sellers more control over the sales process and a way to retain as much of their capital as possible. By automating the sales process, HomeLister says it “locks in the cost of the sales agent,” saving sellers an average of $21,000 and reducing the average days on the market from 16 to 9 days.

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CEO Lindsey McLean founded the company in Santa Monica, California in 2015 with attorney and real estate broker Jennifer Stein after her own experience selling homes.

I worked with a top notch agent who helped me buy my house. However, I found myself doing most of the sales work—showing the set-up, coordinating show times, researching home deals in the area, and setting the initial sale price,” McLean recalls.

Her home was sold in less than a week at the price she set in a two-way deal, allowing her real estate agent to keep the full 6% commission.

“I ended up writing a commission check that, at the time of closing, was over 25% of my equity. It blew me away,” McLean, a software engineer and real estate developer, told TechCrunch. “My agent was great, but he wasn’t really worth 25% of my capital for 15 hours of work. This seemed incredibly unfair, and I was shocked by the economics of the traditional salesperson. I have worked hard to build this capital.”

The traditional 6% commission model of an agent is seen by many as obsolete. Therefore, it is not surprising that homeowners and investors are equally interested in the company. To date, HomeLister says it has helped sell more than 3,750 homes for a total of over $1.9 billion and saved its clients a combined total of over $77.5 million in net worth. And today the company announces a raise $10 million in a Series A funding round co-led by M13 and Homebrew, bringing total funds raised to nearly $15 million to date.

HomeLister currently operates in 17 states and plans to expand to six others, including South Carolina.Illinois and Michigan in 2022. Ultimately the goal is to be in all 50 states.

So how does it work? If a homeowner wants to list their home through HomeLister, they enter the address on their website and the system will then guide them through the listing process. Customers who choose its basic plan for free and pay $599 when their home sells. The company also offers premium and platinum plans up to $2,999, depending on the level of support they want. Services such as transaction management, 3D viewings, professional photography, agent review of the offer and handling of all sales paperwork or online advertising campaigns can be added on the menu. All of its services are completely online and virtual.

“The main difference with the premium package is that you have a real estate professional who guides you from start to finish, including helping you evaluate your home and develop a strategy, and then discuss offers and any questions,” said McLean.

While the company declined to disclose exact revenue figures, McLean said it has “more than tripled” revenue from 2020 to 2021 and increased its market share by 450% over the same time period.

In addition to geographic expansion, HomeLister plans to expand its current offering and add additional services to its site, such as title services and automated transaction management.

“Most sellers are now comparing us to traditional realtors, and some to flat-fee MLS providers with low levels of service that list you and then leave,” McLean said. “HomeLister is the best of both worlds. You get as much help as you want throughout the process, with a flat fee guarantee that’s tied to how much work we do, not the price of your home.”

Image credits: CEO and co-founder Lindsey McLean / HomeLister

M13 partner Carl Alomar noted in a written statement that has been a strong market for property sellers in recent years, with demand far outpacing supply.

“This period of fast selling has clearly demonstrated the inefficiencies and financial implications of traditional brokerage: the model best suited for a breakout,” he said. “HomeLister addresses this challenge with a smart and valuable digital solution that is highly popular with merchants and has significant room for expansion and growth.”

Satya Patel, partner at Homebrew, noted that real estate is often the biggest asset for most people.

“HomeLister is redesigning the home sale process to ensure that sellers retain as much of their capital as possible, which should ultimately help buyers as well,” he said in a written statement.


Credit: techcrunch.com /

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