Philadelphia-based real estate startup Houwzer is expanding its team in D.C. after raising a $9.5 million Series A funding round.
This comes after the creator of a tech-enabled brokerage service expanded its team in the District in January 2019 following raising $4.5 million in seed funding. This Series A was led by New Jersey-based Edison Partners, and previous investors Admiral Capital Group and real estate investor Ira Lubert also participated.
1776 Alum news! Big congrats to Center City-based real estate startup and 1776 Graduate, @Houwzer, for raising $9.5 million! Check out what that means for them in the write-up by @TechnicallyPHL. #builtby1776 #1776grad #startup #realestate # https://t.co/FRiuQdKJla pic.twitter.com/5GjIiECbWU
— 1776 Philadelphia (@1776PHL) February 6, 2020
Houwzer leverages technology and full-service, salaried realtors to save home sellers an average of $15,000 and provide home buyers a pressure-free experience, it reports. Traditionally, agents would receive a 6% fee, but instead, Houwzer charges a flat $5,000 listing fee paid at closing plus 2.5% for the buyer’s broker. The company said this model saves home sellers an average of $15,000 in commissions.
Houwzer plans to use the fresh funding to expand to the Baltimore area, and grow its existing presence in the Philly and Washington, D.C. regions. The company said it also plans to double its workforce and expand into the Orlando area over the next year.
Howzer currently employs 15 full-timers in D.C., with plans to grow to a team of 21 in the region this year, the company’s cofounder and CEO, Mike Maher, told Technical.ly.
“D.C. is our fastest-growing market right now as we grew revenue by 273% in 2019 and we need to support the demand,” Maher said.
Maher said Houwzer plans to hire buyer agents, apprentice agents and a sales manager in D.C. The real estate startup mainly advertises its open positions through promotions on LinkedIn and Indeed. As the company continues to grow in D.C., Maher said Houwzer will continue to work out of 1776 Lafayette Square.
“Our solution resonates because it puts the customer first — reducing chaos in the transaction without sacrificing service,” Maher said in a statement. “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.”-30-