Change to the real estate industry isn’t always bad. Sometimes it forces you to adapt to newer technology and many times, it’s a result of what buyers and sellers want. These three startups are definitely disruptive to traditional real estate sales but they’re companies to watch. They may help you build your business or give you a sense of how the market may be changing.
Big data is a big deal. You’re probably already using it to market your business and generate leads. HouseCanary is betting big on analytics to help make quicker and more accurate assessments on the value of homes across the U.S. Founded in 2014, the company has raised more than $33 million in a recent investment funding round.
What do they do? HouseCanary uses thousands of data elements, over half of which is their proprietary data, to create value reports for lenders, investors, real estate agents, and appraisers, as well as highly accurate and current local market reports.
A company that is disrupting typical real estate sales as we know it, GoldenKey – formerly known as SoloPro – raised $1.75 million in funds in a recent investment fund, bringing its total to $3.4 million in investments raised to allow it to expand beyond the 1900 agents in 47 states it already works with.
What do they do? GoldenKey takes the commission structure as you know it and throws it on its head. Instead of a percentage paid at closing, split between agents and brokers, agents can charge a flat fee through GoldenKey just for the service they provide and get paid quicker. Buyers and sellers buy flat fee packages for services they want and (in most states) receive a three percent rebate at closing.
The brainchild of former Trulia executives, Knock joins other companies seeking to use predictive analytics to make selling a home easier for people – especially when time is of the essence. Investors agree that Knock has potential with $32 million raised recently. They’re starting slowly, currently only in Atlanta, and recognize their system won’t work for every market.
What do they do? Knock offers a price and timeline guarantee for home sellers. They promise to sell a home in six weeks or less or they’ll buy it themselves. They don’t accept every home who wants to use their system, and they’re (currently) sticking with homes in the $150,000 to $500,000 range. Sellers benefit no matter what. They get their asking price from Knock if it doesn’t sell in six weeks. If it sells later, they get to keep the entire amount even if Knock doesn’t get the original price and they get the difference if Knock sells it for more (minus transaction fees).
Former Communications Director for a local Realtor Association and a big cheerleader for all things real estate related, Michaela is now a full-time freelance writer specializing in real estate and other business industries. When she's not writing the serious business-y stuff, she's likely to be found writing about the hilarity of being a Mom to two rowdy boys.