A real estate brokerage that uses a mobile app, beacons and low fees to service homebuyers and sellers has closed a $5 million Series A funding round.
San Mateo, California-based Reali will use the cash to expand to all markets around the San Francisco Bay Area, including San Francisco, Oakland and San Jose, and continue to build out its technology and brand.
“We’ve experienced significant growth in a very short period of time and our scalable model is ready for new markets and platforms,” said Reali CEO Amit Haller in a statement.
The company declined to disclose transaction numbers but said that it employs 10 licensed agents and is looking to hire more.
Reali‘s business model revolves around a mobile app, available for Android and iOS, that offers listing search, the ability to make and view offers, submit paperwork and chat with agents.
When working with homebuyers, Reali keeps only $4,950 (up from $2,950 last year) from the buy-side commission and rebates the remainder to the buyer. It claims to have saved buyer clients an average of $31,335 off the cost of their home purchase.
A Reali beacon
Seller clients, meanwhile, pay a 4 percent commission when selling to a buyer working with a buyer’s agent, with Reali pocketing 1.5 percent for itself and paying the remainder (2.5 percent) to the buyer’s agent.
“Reali believes that the value of the agents for buyers is about the transaction and the fee should be flat and reasonable, unbiased and without motivation,” Haller told Inman.
Reali’s technology makes it easy for unrepresented buyers to visit and purchase its listings.
Its app lets buyers learn about the purchase process, stay up to date on key steps, submit offers and see competing bids. Reali also uses smart locks and beacons to make it easy for buyers to see its listings and publishes property inspection reports upfront.
It recently launched a mortgage brokerage service to become a “one-stop shop for buyers.”
Investors who participated in Reali’s funding round include Signia Venture Partners and a group of angel investors led by Warren Weiss.
“The real estate industry is poised for dramatic change and Reali has the team and expertise to be that disruptor,” said Ed Cluss, a partner at Signia Venture Partners, in a statement.
Reali’s “mobile-first real estate approach delivers value to the consumer real estate experience through improved customer service while also dramatically reducing brokerage fees,” he added.
Editor’s note: This story has been updated to correct that Reali is based in San Mateo, California, not Palo Alto.
