February 08, 2022
PHILADELPHIA – Houwzer, an end-to-end real estate brokerage and homeownership platform powered by proprietary technology and an all-W2 labor model, announces the closing of a $118 million Series B financing. The funding includes $18M in equity and a $100M warehouse line of credit that will enable the launch of three new consumer products that will be first to market in most of Houwzer’s territories, while offering flat-fee pricing – which will be first to market nationally. Houwzer will introduce Cash Advantage™, Convenience Offers™, and Buy Before You Sell to help clients remain competitive in the most difficult housing climate in history.
“Mortgage, appraisal, and sale and settlement contingencies can often kill deals in the current housing frenzy, so these products will give Houwzer buyers a material advantage with their cash offer,” said Houwzer CEO, Mike Maher. “They’ll also give sellers the confidence to shop for their next home before selling their current home, thanks to a flexible, cash offer in-hand.”
This funding round will also enable the company to further penetrate and expand within its six MSAs across seven states up and down the east coast and add key executives across Marketing, Product, People, and Home Services. The round was led by Edison Partners and brings Houwzer’s total equity funding to $35 million since its 2015 inception.
Houwzer has eliminated the percentage-based commission pricing for listings and rebuilt the brokerage model around the customer, creating a one-stop shop for real estate, mortgage, title, and escrow services that simplifies the chaotic and expensive process of buying and selling homes. Its $5,000 flat-fee listing model empowers sellers to maximize their profit – saving an average of $15,000 in commissions, while still providing a full-service experience via technology and tools. The company has helped clients buy and sell 4,000 homes with a cumulative sales volume of nearly $2 billion, saving home sellers $35 million in brokerage commissions. Houwzer is the only real estate company operating on an all-W2 compensation model across all of its salaried agents and mortgage advisors.
“This funding round further cements our innovative approach in creating a new model for residential real estate,” said Maher. “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.”
Houwzer’s innovation will extend to its product line as the company begins to roll out new products to help buyers and sellers win in this competitive seller’s market.
Cash Advantage™ empowers home buyers to win the bidding war on their dream home with a Houwzer-backed, all-cash offer. This material advantage helps Houwzer home buyers beat out higher priced offers, which typically include appraisal and mortgage contingencies disliked by sellers.
Convenience Offers™ empowers home sellers to shop with confidence for their next home knowing they have a Houwzer-backed, all-cash offer on their current home. This convenience offer gives seller’s the flexibility they need to move at their preferred speed without dealing with sale and settlement contingencies, which aren’t competitive in today’s market.
When you combine these products, you get the Buy Before You Sell product experience. In today’s low inventory market, buying before you sell is the most competitive way to ensure buyers can close on their dream home with speed, predictability, and convenience. With these new consumer products, Houwzer will be able to meet the customer where they are in their journey and stay true to its mission of being a disruptor brand that is a better, faster, more cost effective alternative to the traditional brokerage model.
“I’ve been incredibly impressed with Houwzer’s reviews and customer experience to date,” said Dan Herscovici, Partner at Edison Partners, who will be joining the Board alongside Michael Kopelman. “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.”
Currently operating in seven states, Houwzer services the Greater Philadelphia region, the Washington, D.C. beltway, the Greater Maryland region, and the Orlando, Tampa, and Jacksonville markets.
A certified B Corporation since 2016, Houwzer gives back to communities through its non-profit, RiseUp Fund, providing a pathway for homeownership in underserved communities. The company also maintains a strong reputation among consumers, maintaining an average rating of 4.9 out of 5 stars from over 1,000 client reviews.
Edison Partners also led Houwzer’s $9.5 million Series A raise in 2020. Series B follow-on investors include Admiral Capital Group, GOPhilly, and Ben Franklin Technology Partners.
About Houwzer: Houwzer is a next-generation real estate brokerage and home services company built around the customer. Its full-service, salaried agents and loan officers help homeowners save when they sell and trust when they buy. Houwzer’s proprietary technology is an end-to-end platform that streamlines the entire transaction from beginning to end with an integrated one-stop shopping experience. The company employs unique salaried agents as dedicated seller or buyer agent specialists who receive salary instead of commissions, allowing them to focus on service, not just sales. Houwzer has maintained an industry-leading Net Promoter Score of 84 and an average rating of 4.9 out of 5 stars from over thousands of client reviews online. Since launching in 2015, Houwzer has saved home sellers along the East Coast over $35 million and helped clients buy or sell thousands of homes worth almost $2 billion. To learn more, visit houwzer.com.
About Edison Partners: For over 35 years, Edison Partners has been helping CEOs and their executive teams grow and scale successful companies. The firm’s investment team brings extensive investing and operating experience to each investment. Through a unique combination of growth capital and the Edison Edge platform, consisting of operating centers of excellence, the Edison Director Network, and executive education programs, Edison employs a truly integrated approach to accelerating growth and creating value for businesses. A team of experts in enterprise solutions, financial technology, and healthcare IT sectors, Edison targets high-growth companies located outside Silicon Valley with $10 to $30 million in revenue; investments also include buyouts, recapitalizations, spinouts and secondary stock purchases.
Edison’s active portfolio has created aggregated market value exceeding $10 billion. Edison Partners is based in Princeton, NJ and manages more than $1.4 billion in assets.