- Philadelphia-based online real estate platform company Houwzer announced it raised $9.5 million in a growth round of funding led by Edison Partners
Philadelphia-based online real estate platform company Houwzer announced it has raised $9.5 million in a growth round of funding led by Edison Partners, according to Crunchbase. Including this round of funding, Houwzer has raised a total of $17 million since it was founded in 2015.
Some of Houwzer’s previous investors include former NBA star David Robinson, HomeBuilder.com co-founder Jay Minkoff, Admiral Capital Group, and Ira Lubert.
Ever since Houwzer was founded, the company has saved home sellers in the mid-Atlantic region more than $13.8 million. And the company also helped clients buy or sell thousands of homes worth more than a combined $750 million.
Houwzer co-founder and CEO Mike Maher told Crunchbase that the company hires its agents as salaried employees rather than contractors who work on commission — which distinguishes the company from its competition. And Houwzer saves agents time by taking care of business generation, marketing, and administrative tasks.
Houwzer charges a flat $5,000 listing fee (paid at closing) and a 2.5% for the buyer’s broker. Plus Houwzer also invests in training and education for the agents.
Houwzer has grown by 100% year-over-year. And the company is profitable in the Philadelphia area. The company is planning to be profitable in the D.C. area this coming year.
With this round of funding, Houwzer is going to grow its existing presence across the greater Philadelphia and Washington, D.C., areas. And it is also planning to expand in the greater Baltimore area.
The funding will also be used for expanding beyond a brokerage to include services like mortgage, title and, insurance. And the funding will also be used to “double down” on its existing technology.
Houwzer is planning to double its workforce over the next 12-18 months. And Houwzer is planning to enter the Orlando market later this year. As of now, the company currently has 77 employees, of which 50 are real estate agents.
In conjunction with the funding round, Edison Partners Michael Kopelman is also joining the Houwzer board.
“Houwzer’s tech platform serves as a blueprint to a transaction and reduces a lot of anxiety for customers since they can understand what’s coming next,” said Kopelman. “Its technology component is fundamental to its ability to streamline.”