Buying a house is a massive undertaking no matter who you are, especially because of the cost, with brokerage fees not helping.
For those millennials who can’t afford to buy a house, here’s how real estate brokers typically get paid: the broker on each side of the deal each take, on average, three percent of the selling price of the home. So, if a house sells for $500,000, the seller and buyer’s broker(s) collectively take $30,000 off the table for themselves.
Door Inc., a Dallas-based company building a tech-enabled real estate brokerage firm, aims to change that by charging a flat $5,000 fee to either the buyer or seller for the transaction. So, if it represented both the buyer and seller in that deal for a $500,000 house, its commission would be $10,000, saving each party a collective $20,000 on the deal.
The company closed the final chunk of an approximately $12 million Series A round, which was raised in multiple tranches. Door’s CEO, Alex Doubet, confirmed this in a phone interview.
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