Buying a home is one of the most important milestones and largest financial investment in your life. And yet for most people, the process is complicated, it’s time consuming and it’s stressful.
It requires searching and selecting a buyer’s agent and then finding a small army of ancillary support – ranging from mortgage loan officers, to title agents, to housing inspectors – all while trying to make quick and clear decisions in the frenetic and confusing world of home sales.
For those hoping to sell their home and buy another, it only gets worse. Consumers are often stuck selling their existing home before they can secure the financing for a new one.
It doesn’t have to be this way.
Today, we are thrilled to announce that we are co-leading a $150M Series C round in Flyhomes, a pioneer of the end-to-end homebuying model reinventing the way consumers buy and sell their homes. We will be joined by our friends at Battery Ventures with additional participation from Fifth Wall, Camber Creek, BAM, Zillow co-founder Spencer Rascoff and existing investors Andreessen Horowitz and Canvas Ventures.
The Flyhomes Experience: Helping Homebuyers Win
After feeling the pain point first-hand, Tushar Garg and Stephen Lane started Flyhomes with a simple goal: to put the homebuyer first.
Flyhomes brings every step of the homebuying process, from brokerage to mortgage, under one roof. Their tech-enabled platform and team of client advisors guide the homebuyer through each part of the transaction – touring, selecting, financing, offering, winning and closing – creating a seamless, informed and empowering experience.
They are market innovators, creating financial products to help their clients win faster and for less money. They invented the Cash Offer, turning homebuyers into all-cash buyers to give them a competitive edge to win. The Guaranteed Offer strengthens an offer by guaranteeing that Flyhomes will purchase the home if the buyer backs out, eliminating uncertainty for the seller.
Additionally, for existing homeowners, they created Buy Before You Sell, which eliminates the hassle of moving twice, taking on a double mortgage, or living through house showings. Flyhomes Buy Before You Sell is better aligned with customers compared to the iBuyer model. Flyhomes customers get to sell their homes for the market value, whereas if they sell to an iBuyer they sell at a 10-12% discount to market value and the iBuyer captures the difference.
And it all works.
Flyhomes has helped thousands of customers buy and sell more than $2.6 billion homes since its launch in 2016 and is growing at more than 3x in transaction volume year over year. Customers increase their win rate four-fold versus traditional financed offers, and they win without being the highest bidder more than half of the time. The savings on the home sales price versus the highest competing offer is on average 2.4% and can be as high as 10%.
A Genuine Commitment to the Customer
Consumers care about the total experience and this is upending traditional business models across industries – from how we shop (direct-to-consumer commerce), to how we interact with financial products (modern fintech apps), to how we interact with doctors (telemedicine), to how we buy and sell our homes. The Flyhomes approach of providing unprecedented service and a seamless, vertically integrated product offering is the future of real estate.
A big focus of our investment style is identifying brands that can breakout and become category leaders, and a common ingredient to do so is customer love.
Flyhomes has created the best consumer-centric brand in the industry with consistent five star reviews on Yelp and best-in-class referral rates in its current markets.
Flyhomes currently operates in Seattle, San Francisco, Los Angeles, San Diego, Portland, and Boston. With sights set on making the Flyhomes experience available to all homebuyers, they will be expanding to new geographies across the country with this new round of funding.
We are deeply honored to partner with Flyhomes as they gear up for this next phase of growth to create the industry’s best homebuying experience.