Next door, proptech startup HonestDoor introduces flat-fee brokerage service

Proptech startup HonestDoor is evolving from a data shop into a commerce business. The Edmonton-based company recently announced the launch of a brokerage service, which allows Canadian homeowners to list their properties on the Multiple Listing Service (MLS) – a marketplace for buyers and sellers – for just $500.

HonestDoor was launched in 2019 by co-founder CEO Daniel Belostotsky after purchasing properties and realizing property data wasn’t readily available to the public at large. HonestDoor was launched to make data transparent for everyone in the real estate ecosystem – consumers, brokers and financial institutions. Now, with this recent launch, the startup is taking the next step: giving consumers a chance to control their property listings.

The new service has already completed dozens of successful transactions, according to HonestDoor.

“Our brokerage service offers a compelling alternative to traditional real estate listings," said Belostotsky. “We manage the listing and placement on Realtor.ca, allowing homeowners to set the commission they wish to pay a buyer's agent. If an unrepresented buyer contacts the seller, the savings can add up to tens of thousands of dollars, depending on the value of the property.”

At that point, both parties can speak directly and agree on a price. They can then reach out to many of HonestDoor's recommended real estate lawyers or use their own lawyer to ensure everything is legitimate.

So far, 20 per cent of HonestDoor's listings sold without representation from either side, according to the startup, which theoretically leads to significant savings for consumers.

The company has raised $2.7 million to date on the heels of enthusiasm for its product and traction. According to BetaKit, the startup raised $500,000 in 2020 from Panache Ventures, Bluesky Equities, Conconi Growth Partners, and investors Ashif Mawji, Sanders Lee, Blaine Labonte, and Greg Kwong.

Two years later, the outlet reported that the startup raised a $2.2 million seed round with new investors including Luge, Reach Canada, and Wheaton Group. Multiple previous investors returned as well as a handful of angel inventors including Startup TNT, Sanders Lee, Ashif Mawji, and Blaine LaBonte.

As for what’s next, HonestDoor said it plans to continue augmenting its consumer buy-side, enhancing services, and providing data for business clients. The 2024 goal is to complete thousands of listings in 2024 – a fraction of the approximately one million listings completed nationally each year – and grow from there.