Reali hopes to entice buyers and sellers by offering “no commission” on transactions, instead charging a “small administration fee.”
It looks like 2017 is shaping up to be a great year for Reali, the startup that launched a year ago in Palo Alto, and uses beacons and “no commission” to lure buyers and sellers in the housing market (so far, a few areas in California). The company today announced a new $3 million investment from Zeev Ventures and an additional $1 million from previous investors, bringing Reali’s Series A funding to a total of $9 million.
Reali, which used part of its initial Series A funding of $5 million in May from investors like Signia Venture Partners to expand in the San Francisco Bay Area, now hopes to grow in other markets. The new $3 million in funding was given by investor Oren Zeev, who’s previously been involved with companies like Houzz, Audible, and Chegg. This is Zeev’s second investment into Reali, as he was part of the initial seed when the company launched. Zeev will be joining Reali’s board at an opportune time.
The company has seen “50 percent growth quarter over quarter” since October 2016, but did not provide further details on that number.
“Reali has experienced significant momentum in just a year since they first launched to disrupt the real estate industry and I’m excited to work with them to continue scaling their business,” stated Zeev in a press release.
For Amit Haller, Reali’s cofounder and CEO, a relationship with Zeev isn’t so new. The two previously worked together at Butterfly RE Investments and have known each other for 20 years.
According to Reali, the company believes it saves buyers an average of $28,550 on their home deals through its app, “in lieu of a traditional agent.”
In the app, potential buyers can search through listings, view and make offers, and chat with a “live expert.”
But perhaps Reali’s biggest differentiator is that when buyers do a tour of a home for sale, it sends them messages on their smartphone about specific features—such as what a countertop is made out of or if a part of the house needs to be replaced. These messages are geolocated and appear when a buyer enters the corresponding area. Reali does this by placing physical “beacons”—tiny data transmitters—throughout the home.
Reali also hopes to entice buyers and sellers by offering “no commission” on transactions. However, it charges buyers and sellers a “small administration fee” at the flat rate of $4,950. It gives buyers a full “cash-back refund” of the buyer’s agent commission (usually 2.5 percent) at close of escrow.
For sellers, they’re out the $4,950 full-stop, but Reali says this is “thousands less than the typical 2.5-3%” listing agent commission. The company for now remains mum on whether or not it will change this fee (it did earlier this year, raising it from $2,950 to the current fee).
Reali is available on both iOS and Android and currently services the San Francisco Bay Area, Sacramento and Solano Counties, and Roseville