A Dallas startup that aims to disrupt the real estate business by charging a flat fee for brokerage services rather than the traditional 6% fee plans to grow after it just raised $2.3 million in a round of funding.
Here’s D Magazine’s Danielle Abril with the details on Door:
Door, founded in 2015 by CEO Alex Doubet, charges homeowners a flat rate of $5,000, compared to the traditional 6 percent commission fee, for its brokerage services. Last year, home sellers saved an average of $15,000 under Door’s model.
The startup’s Series A round of funding, which closed March 3, was led by Robert Smith, owner of Dallas-based Sold Out Sports, a sports event ticket seller. Investors in the round included Blair Baker, managing partner at Dallas-based Precept Capital Management, and (Dallas real estate developer Phillip) Huffines, who’d previously invested in Door. The round did not include any institutional investors and follows an $800,000 seed round of funding the company secured last year.
According to the D Magazine article, Door got its first listing just over a year ago, and now has nine full-time agents. The company currently projects a run rate of between $1 million and $2 million in 2017.
Again from D Magazine:
Door is only expected to grow, as Doubet launches new marketing campaigns, hires more agents, and rolls out new software features with the latest funding.
The company not only aims to ease the burden of selling for the owner; it also helps the buyer with purchasing. Using Door’s system, buyers can curate property listings, instantly request a showing with a Door agent, and also get quoted on a rebate. Buyers get about 1.3 percent back after their deal closes.
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