Reali, a real estate company that offers lower commissions and a tech-focused experience for home buyers and sellers, announce that it plans to expand its operations throughout San Francisco after it closed on a $5 million round of funding.
The funding, which was led by a Silicon Valley venture fund Signia Venture Partners, is the company’s first round of funding.
Using the money raised in its Series A funding, Reali plans to expand into all real estate markets around the San Francisco Bay Area, including the cities of San Francisco, Oakland and San Jose.
The company launched towards the end of last year, and has made significant progress so far, Reali’s co-founder and CEO, Amit Haller, said.
“We’ve experienced significant growth in a very short period of time and our scalable model is ready for new markets and platforms,” Haller said.
“We care about innovating and improving upon the whole process for buyers, sellers, and current homeowners,” Haller added. “Reali’s model has been particularly appealing to first time home buyers, and we’re quickly gaining traction and repeat business from experienced homeowners.”
The company claims that it can offer lower fees and cash back with a full refund of the buyer’s agent commission (typically 2.5%). Additionally, it cuts the seller’s commission to just 4%, saving tens of thousands of dollars in certain markets.
The company said that it can do this because it brings “data-driven insights across the complete lifecycle of buying, owning, and selling a home”.
“Reali’s technological platform and app-driven approach fits today’s mobile lifestyle, and makes the entire process more accessible, transparent and financially rewarding than ever before,” the company said in a release.
In addition to expanding in the San Francisco area, the company said that it will use the $5 million to fund technological advancements, brand marketing, and market expansion.
“Signia invests in technology companies whose innovative business models are taking advantage of mobility and data,” said Ed Cluss, partner at Signia Venture Partners, who will also be taking a seat on Reali’s board.
“The real estate industry is poised for dramatic change and Reali has the team and expertise to be that disruptor,” Cluss added. “Their mobile-first real estate approach delivers value to the consumer real estate experience through improved customer service while also dramatically reducing brokerage fees.”