Houwzer said it plans to use the funds to expand into Greater Baltimore and grow its presence in the Greater Philadelphia and Washington, D.C., areas. The financing will also support expanding its services to include mortgage, title and insurance divisions.
Houwzer said it is “creating a technology-enabled, unified home buying and selling experience” with its agents solely focused on the client.
“Consumers continue to prefer human advisers, especially for a transaction this significant; but they also believe that advances in technology should translate into savings and a better experience,” Houwzer co-founder and CEO Mike Maher said. “Our solution resonates because it puts the customer first — reducing chaos in the transaction without sacrificing service. We’re really excited to have found the right partner in Edison, who shares our vision and will help us bring a new real estate model to the masses.”
In comparison to a traditional 6% fee, Houwzer charges a flat $5,000 listing fee paid at closing plus 2.5% for the buyer’s broker, it said. This saves their home sellers an average of $15,000 in commissions.
“We’re really excited about what Houwzer has built and where the company is headed. I’m incredibly impressed with CEO Mike Maher’s team, the company’s significant growth and strong customer reviews. I’m confident that Houwzer is positioned nicely to deliver on a differentiated customer service promise with its salaried labor model and tech-enabled platform,” Michael Kopelman, general partner at Edison Partners, who will join Houwzer’s board, said.
Houwzer also said it is planning to double its workforce and enter the Greater Orlando market over the next 12 months.