Zillow alum raises $5M seed to rebate homebuyers' commissions
What's the deal? HomaDealroom has a profile for this one. Try Dealroom →, a startup that returns part of the buyer's agent commission at closing, has raised $5 million in seed funding. Quiet Capital led the round, joined by Restive VenturesDealroom has a profile for this one. Try Dealroom → and Cambrian VenturesDealroom has a profile for this one. Try Dealroom →.
What's the endgame? Homa pairs AI with licensed agents to help people buy homes, then returns most of the buyer's agent commission as a credit. It charges 1% of the purchase price, subject to a minimum fee, and keeps the rest.
Who's behind it? Chief executive officer Arman Javaherian spent six years at Zillow, where he helped build its Premier Agent service. He founded Homa in 2024 with chief technology officer Federico Campeotto, who holds a doctorate in AI.
Why now? Javaherian started developing Homa after the National Association of Realtors' 2024 settlement, which requires agents to sign written agreements with buyers before touring homes. He bet that discussing fees earlier would make buyers question what they pay.
"You tour on someone else's schedule, you take advice from someone paid more when you spend more," Javaherian said, "and then you hand over tens of thousands of dollars at the closing table for work you largely did yourself."
By the numbers: Homa began generating revenue in April, and revenue grew sixfold over its first six months. It has returned nearly $1.5 million to buyers, with the average credit about $10,560. Homes purchased through the company ranged from $150,000 to $2.4 million.
What's next? Homa operates in Florida and Texas. The new funds will support expansion into California and the launch of a mortgage business.
What could go wrong? An earlier version let buyers purchase homes without their own agent, but some sellers' agents refused to work with them, citing liability, or kept both commission portions. Homa responded by obtaining a brokerage license to represent buyers itself.
The signal: At $5 million, Homa's seed round sits in the top 10% of all US real estate seed deals on record. The raise reflects investor appetite for startups rebuilding home-buying economics in the wake of the commission settlement.
Read more: thisweekinfintech.com
Image credit: Homa
