Flyhomes lands $150M to bring end-to-end homebuying to more markets

Flyhomes says it’s helped close $2.6 billion in home sales to date, with sales prices ranging from $150,000 to $5 million. The company provides end-to-end homebuying services through brokerage, mortgage and closing subsidiaries.

Flyhomes, a pioneer of the end-to-end homebuyer model, has landed $150 million in funding that it says will allow it to meet outsized demand and expand beyond its current markets of Seattle, San Francisco Bay Area, Los Angeles, San Diego, Portland and Boston.

Two venture capital firms that led the Series C funding round — Norwest Venture Partners and Battery Ventures — will gain seats on the Seattle-based company’s board of directors. Also participating were Zillow cofounder Spencer Rascoff, Balyasny Asset Management, Fifth Wall, Trustbridge Partners, Camber Creek, and existing investors Andreessen Horowitz and Canvas Ventures.

Lisa Wu

Norwest Venture Partners’ Lisa Wu said in a statement that Flyhomes is “emerging as the leading consumer-facing brand in this new category. We’re thrilled to partner with them to serve more buyers across the country.”

Tushar Garg

Launched in 2016 by Tushar Garg and Stephen Lane, Flyhomes says it’s helped close $2.6 billion in home sales to date, with sales prices ranging from $150,000 to $5 million. The company provides end-to-end homebuying services through subsidiaries including FlyHomes Brokerage, FlyHomes Mortgage, and FlyHomes Closing.

Stephen Lane

Short-term loans allow homebuyers to make cash offers, and then take out a long-term mortgage with Flyhomes Mortgage or another lender after the sale closes. Flyhomes helps sellers prep their homes for sale, and trade up to a new home while their old home is still on the market.

Flyhomes also employs real estate agents who are paid a base salary and bonuses based on how many homes they help buy. Although buyers can work with their real estate agent of choice, they’re offered a rebate if they work with Flyhomes agents. Buyers can back out of a purchase after their cash offer is accepted, but they’ll lose their earnest money — typically 5 percent of the sale price — and Flyhomes will purchase the property instead.

When sellers chose Flyhomes as their listing agent, they pay 1.25 to 1.5 percent of the home’s sale price, or 2 to 2.5 percent for “all inclusive” services that include cleaning, staging, and inspecting.

If a home hasn’t sold after it’s been on the market for 90 days, Flyhomes will make an offer on it, although sellers can their property on the market until it sells.

The iBuyer business model pioneered by companies like Zillow, Offerpad and Opendoor originally targeted sellers who didn’t want to deal with the inconvenience of putting their homes on the market. Today, a growing number of companies also provide cash offers and trade-in services to buyers, providing alternative financing and acting as transaction facilitators.

Competitors in the space include:

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