‘Carfax for homes’ startup secures funding
RealReports, which provides property information for all U.S. homes, says it can give agents a competitive edge.
A real estate technology company that offers a product it describes as a "Carfax for homes" recently secured $2 million in seed funding.
Funding details: The seed investment for RealReports comes from TTV Capital, Moderne Ventures and other venture capital firms to accelerate the growth of its AI-powered property data product.
The funds will be used to accelerate product development, grow the team, and work with more large real estate brokerages, MLS associations and proptech companies nationwide, said Zach Gorman, RealReports co-founder.
How does it work? RealReports provides information about every property in the U.S., the company states. The type of information available depends on the subscriber level, but it can include data such as neighborhood scores, valuations, permits, remodel potential and rental potential.
The product is geared toward real estate agents who "utilize the wealth of data to win more deals, generate leads, streamline property research, and build trust and credibility with their clients," according to a news release, which also suggested that RealReports was attractive to investors because it included key property information all in one place.
"Real estate data is fragmented, and the home-buying process can be opaque, especially for first-time buyers. Realtors and their clients need a solution that provides them with critical information about a property at the start of the process, rather than days before closing," said Lizzie Guynn, partner at venture firm TTV Capital.
In an email, Gorman said the product is not meant to compete with MLS listings, but to provide further insight into a property.
"Our belief is that [MLSs] have done a great job of syndicating their data, and by the time an agent is using a RealReport, they or their client have already seen the MLS data on one of their platforms, or on portals like Zillow/Redfin," Gorman said.
Why now? With buyer agent commission lawsuits in the mainstream media and on the minds of consumers, the industry is facing increased scrutiny. Gorman believes his product can help agents demonstrate their value in an environment where commission rates are being questioned.
"We have many brokerages and agents approaching us seeking out new tools and resources to give them a competitive edge, differentiation, and a way to provide value to clients — RealReports are ideally positioned to help in this effort," Gorman said.