The last few years have been a period of growth for Home Bay, a flat fee real estate company, and thanks to a new injection of funding, the growth won’t be stopping any time soon.
Home Bay announced Tuesday that it raised $13.5 million in its Series A-1 funding round, which was led by Signal Peak Ventures with participation from Serra Ventures and E15VC. Both Serra Ventures and E15VC are previous investors in the company, having taken part in the company’s $5 million capital raise in 2017.
That round of funding helped the company expand beyond California, where it started, to new states and into new business lines.
Instead of charging its customers 3% commission on the buy or sell side, Home Bay charges between $2,000 and $3,500, which the company claims can save borrowers thousands of dollars.
Last year, Home Bay expanded into the title and settlement services business by acquiring a 50% stake in OTC National, a title insurance provider that operates under the name OnTitle.
The company also began operating in Arizona and Virginia. Earlier, the company expanded into Florida, Georgia, Illinois, Texas, and Colorado.
And the company doesn’t plan on slowing down, thanks to the new funding.
According to the company, it plans to use the funding to expand into more states and improve its technology platform. The company said that it has now successfully integrated escrow, mortgage and title services into its platform and plans to add additional services.
“The traditional real estate model is slow, cumbersome, and costly for consumers. Home Bay is revolutionizing the way people buy and sell homes with a platform that streamlines the entire process,” said Ken Potashner, chairman and CEO of Home Bay. “This backing from Signal Peak Ventures strengthens Home Bay’s position as the only full-service digital real estate company.”
Scott Petty, Signal Peak Ventures managing director, said that the company is “thrilled” to work with Home Bay.
“The method of buying and selling a home has been stuck in the past for decades. Our firm has looked at several attempts to change this model,” Petty said. “When we saw Home Bay’s approach, we knew it had the solution to change the residential real estate industry forever.”
