Homie, a Utah-based brokerage that touts flat fees has announced its successful completion of $23 million in Series B financing.
The brokerage, which launched in Salt Lake City in 2015 and expanded to Phoenix in 2018, completed $10 million in Series A funding last year.
The Series B funding will allow Homie to expand into Las Vegas in March and eventually into two additional markets at some point in 2020.
“We have only officially announced the Vegas launch in March,” Homie Chief Marketing Officer Joe Grover told Inman in an email. “We expect to launch at least 2 more markets in 2020. We are considering [Dallas, Boise, Seattle, Colorado Springs and Nashville], but haven’t made a final determination.”
In the past year, the company has become the leading residential real estate brokerage office in Utah by transaction volume and transaction value, according to a release. In 2019, Homie achieved a 150 percent growth in revenue and launched additional services for customers through their Homie Loans, Homie Title and Homie Insurance platforms.
“We are grateful to visionary investors who recognize the massive shift that’s happening in how consumers buy and sell homes,” said Mike Peregrina, CFO and co-founder of Homie, in a statement. “This capital prepares us for the launch in three new states, but most importantly, will help consumers save millions of dollars in excessive fees and commissions.”
Homie made waves when in started in 2015 because of its unique business model which eliminates traditional closing costs, the standard 6 percent commission fee and much of the lengthy paperwork involved in traditional real estate transactions. Real estate agents still guide Homie customers through the process, but, instead, sellers are charged a flat fee of $1,500, while both sellers and buyers are guaranteed attorney assistance during the negotiation process.
Despite some drama with local Realtors at the beginning of Homie’s tenure, which prompted the company to get its brokerage license in the first place, the startup appears to be thriving.
