Philadelphia-based real estate company Houwzer has raised a $118 million Series B, the company announced Tuesday.
The round includes $18 million in equity and a $100 million warehouse line of credit, led by Edison Partners. It brings the total equity funding for the B Corp — which operates locally and in DC, the greater Maryland region and Florida — to $35 million since its start in 2015. The funding will primarily go toward the launch of three new consumer products, the company said: Cash Advantage, Convenience Offers and Buy Before You Sell.
Cash Advantage will allow buyers to make Houwzer-backed, all-cash offers, while Convenience Offers gives a seller the flexibility to move quickly with a Houwzer-backed, all-cash offer on their current home. The Buy Before You Sell product is a combination of the two, serving both the buying and selling side of the business.
These products add to the company’s original business model, which leverages technology and full-service, salaried realtors to save home sellers what it says is an average of $15,000, as well as provide home buyers a pressure-free experience. Traditionally, agents would receive a 6% fee; instead, Houwzer charges a flat $5,000 listing fee paid at closing, plus 2.5% for the buyer’s broker.
“This funding round further cements our innovative approach in creating a new model for residential real estate,” Houwzer CEO Mike Maher said in a statement. “Our vision is to reimagine homeownership for good, making it affordable, fast, and fun so buyers and sellers can maximize their next chapter. We’re simply a better, smarter way for consumers to buy and sell homes, and people are starting to catch on.”
Edison Partners is a follow-on investor, having lead Houwzer’s $9.5 million Series A in 2020. Dan Herscovici, partner at Edison, will join Houwzer’s board, along with Michael Kopelman. Previous investors also include Admiral Capital Group and locals GOPhilly and Ben Franklin Technology Partners.
“I’ve been incredibly impressed with Houwzer’s reviews and customer experience to date,” Herscovici said. “Houwzer’s NPS is category-leading, and these new products will remove friction for consumers making them more competitive and confident in this fierce housing market. This is truly the smartest way for consumers to transact real estate.”-30-