Technology has revolutionized the traditional sector of buying and selling real estate, and one of its benchmarks is housefyFounded by Albrecht Bosch, Michael A Mora Y Karl Weissfrom the hand of Nuclio Venture Builder.
The company, one of the 50 Spanish start-ups that are part of our fourth “entrepreneur list”, has sold more than 2,000 homes via the internet since entering the market and is among the five agencies that sell the most in Spain, closing an average of 6 Operations per day and an average saving of 15,000 euros per customer, according to those responsible.
“Our focus is on making apartment management easy. And for that we started to manage sales. And we managed to take all the friction out of this process. Users paid very high amounts for the whole process related to managing the sale. Selling a home requires around 20 visits and visit time is around 20 minutes. That’s about seven hours, and the rest of the functions required to sell a home are highly automatable. For this reason, when a user pays between $15,000 and $20.00 to an agency today, they are basically paying for their inefficiency because they don’t know how to do most of the automatable tasks. And $20,000 for seven hours of work is about $2,800 an hour. And in this context, with what technologies and the market had developed and with these high costs, something was wrong. And that is exactly what we want to solve,” explains Bosch.
Unlike traditional agencies, «we eliminate middlemen and commissions from the sales process. Until success, we only charge 3,990 euros. Would you jump out of a plane with a parachute? If you think the service you provide is good and you will be successful, you really don’t care if you charge a fee at the end of the process,” the entrepreneur emphasizes.
In the process, they also realized that the financing component of a sale was very important, and they decided to get into mortgage management as well. «Housfy analyzes the client’s financial situation, advises them on the choice of mortgage, manages all the documentation and negotiates with the financial institution. The ultimate goal of the process is that the customer gets the best mortgage terms according to their user profile, which will allow them to buy the house they want». To this end, it has already signed cooperation agreements with various financial institutions to offer mortgages, in some cases more than 80% funded, to customers who want to buy their own home.
Last January, the company opened a series of reforms. “Another thing we saw when examining the market is that 50% of the homes sold need a minor to major renovation and the homes that need a major renovation are very difficult to sell. In this industry, our job is to identify and screen quality reform providers so users have budgets to compare and no last-minute surprises. Our idea is to control the whole process very well.”
The company could add new verticals like rentals and relocations in the future. «We want Housfy to become the comprehensive platform for home services, always with sales as the cornerstone. That a user enters the platform and can manage, sell, buy, remodel, rent, paint, clean or perform any action related to the home.
In addition to Spain, the company is also active in Italy and is working on the leap to Portugal and France. «The needs and demands of the users are practically the same as in Spain. They are very fragmented markets, very person based, there is not enough regulation that anyone can enter this market and start selling homes without having an education. Therefore, there is a significant mismatch between knowledge, service and technology. We therefore believe that the opportunity is very interesting.
To date, the company has raised EUR 9.7 million in financing; the last one last May worth six million euros. This round was funded by international funds such as torch capital Y DN capitalin addition to Seaya Ventures, which has accompanied Housfy since its launch. The French fund also participated Cathay capital above C. Entrepreneur. This injection of capital serves to open up new international markets and to further develop the company’s technology.