HomeLight has become yet another real estate matchmaking platform to receive major funding in 2019. As reported earlier this year, a platform called Flyhomes raised $141 million back in August in its efforts to change the home buying experience. Opendoor also raised $300 million in March 2019. What do HomeLight’s user stats look like, and why has this space become so sought after among venture capital funds?

Looking At The Numbers

HomeLight analyzes more than 40 million real estate transactions and more than 1.4 million agent profiles from major brokerages for each transaction.

Sellers can find real estate agents from all major cities and all 50 states.

The platform connects a client to a real estate agent every two minutes and has seen a compound annual growth rate of almost 150% for the past three years.

HomeLight now has 200 employees, double from last year.

HomeLight is backed by several well-known investors.

Services, Major Partnerships, and Acquisitions

When it launched, the company solely matched consumers and real estate investors to agents. Since then, HomeLight has expanded to also provide title and escrow services to agents and home sellers. It also helps connect sellers to iBuyers who allow homeowners to sell their homes for 100% cash upfront on the platform.

Users can also utilize EasyKnock, a service that allows homeowners to sell their homes and then rent from EasyKnock, which becomes the landlord as it buys the property.

In July 2019, HomeLight acquired Eave, a digital mortgage lender. Afterward, it opened up a Home Loans division that launched operations in California, Colorado, Washington, Oregon, Pennsylvania, and Texas.

Agents, Not Automation

Although there has been a lot of hype in recent years about the possibilities of fully automating the home buying experience, HomeLight and other platforms have actually focused on reinforcing the role of real estate agents.

Someone wanting to buy a home on the platform, for example, can access stats like the number of homes an agent has sold within one mile of their house, homes sold at a similar price point, percent of sales over the listing price, and average days on the market to close a deal.

Example of a real estate agent profile that homeowners see when browsing HomeLight

How Does HomeLight Make Money?

When a transaction is completed with the agent recommended by HomeLight, the agent pays the company a customary broker-to-broker referral fee of 25%. Although the service is said to be 100% free for sellers to use, it’s inevitable that the realtor fees will be passed down to the consumer.

Why Is Real Estate Tech Thriving?

HomeLight and a slew of other companies are thriving in real estate tech… but why? Here are a few possible answers.

The process of making an initial listing to actually closing on a deal can be complex. Data analysis technology simplifies crucial decisions like choosing the best possible match for a local real estate agent. There’s a lot of money on the line with each transaction, so the potential to sell a home at or above its market value is a lucrative asset. The ability to have an abundance of agents available on a single platform can help homeowners save time and energy. This especially applies to large cities that have numerous agents competing against each other or in scenarios where sellers aren’t familiar with the local market.

Conclusion

The amount of venture capital funding going towards real estate technology in 2019 alone is quite impressive. HomeLight’s Series C round confirms this. HomeLight’s availability throughout the United States also shows that real estate tech isn’t just limited to a few major cities. Instead, online real estate marketplaces are playing a larger role in the homeownership experience everywhere.