Doorsey, an online real estate platform founded by a group of Spokane entrepreneurs, launched this week and secured $4.1 million in a seed funding round.
Founded by Jordan Allen, Nick McLain and Matt Melville, Doorsey is an online bidding platform they say takes the guesswork out of buying a home by providing real estate agents with real-time home prices and upfront sales terms and disclosures.
“Today’s home-buying offer process is rife with frustrations for all parties,” Allen said in a statement. “Buyers and their agents want to know whether their offer can win. Sellers and their agents want to know they’re getting the best offers. And agents want to close more deals in less time.
“Doorsey solves this by allowing sellers to define upfront what it takes to win, so that buyers can compete on a level playing field and sellers can find the right buyers.”
Allen was CEO and founder of the now-defunct Spokane-based vacation rental company Stay Alfred. McLain is the former CEO of local company OddJobbers, while Melville is a former director of financial planning and analysis at Stay Alfred and Itron Inc.
Although Doorsey announced its official launch Thursday, the group of Spokane entrepreneurs established the company as Ruumr earlier this year in response to the Lilac City’s red-hot housing market, where they say buyers lack knowledge of the dollar amount of competing offers and sellers are unsure of whether they are receiving the best price for their homes.
The co-founders sought input from the local real estate community and subsequently evolved the online platform into Doorsey, which provides buyers with such things as access to home-inspection reports, sale contingencies, photos, a 3D virtual tour via Matterport and a community forum for interacting with sellers and neighbors.
Buyers can also schedule showings and view desired closing dates on the platform.
Doorsey’s listings are posted on the Spokane Multiple Listing Service and distributed through national real estate websites, including Zillow, Trulia, Redfin and Realtor.com.
Doorsey has obtained $4.1 million in seed funding – an early stage of capital investment in startups – allowing it to build-out its product, hire more employees and expand to key markets nationwide within two years, according to the company.
The funding round was led by 166 2nd Financial Services with participation from Agya Ventures, Liquid 2 Ventures and SRM Development, among other investors.
Former NFL quarterback Joe Montana is a managing partner of San Francisco-based Liquid 2 Ventures, while 166 2nd Financial Services is led by former WeWork CEO and co-founder Adam Neumann.
“I have known Jordan since his days in the hospitality industry, and have long respected his entrepreneurial accomplishments,” said Francis Davidson, a Doorsey investor and CEO of hospitality company Sonder. “I am thrilled to support him in his newest endeavor. Doorsey is a key example of technology’s potential to transform legacy industries in a positive way, as they create a platform that embraces crucial transparency.”
Doorsey’s launch comes in the wake of Seattle-based Zillow’s decision to shut down its iBuying division this week, citing unpredictability with forecasting home prices.
iBuyer is a company that uses technology to provide homesellers with an instant offer. Typically, those homes are renovated and then sold at a profit.
Doorsey indicated it differs from iBuyers because it relies on community input and information to determine the value of a property rather than an algorithm.
Doorsey is planning a phased rollout to ensure it can meet the needs of communities it serves, the company said.
The company is eying Indianapolis; Austin, Texas; Boise: Denver; Los Angeles; New York; San Francisco; and Seattle as potential markets for expansion, McLain said in an email.