Lowe’s Invests In SoloPro, A Service That Unbundles Real Estate Agent Services
Image Credits: Mike Mozart / Flickr under a CC BY 2.0 license.
SoloPro, a service that unbundles real estate services and gives buyers a 3 percent rebate when they buy a home through the service, today announced that it has received a strategic investment from home improvement giant Lowe’s venture arm. Neither Lowe’s Companies Venture Capital nor SoloPro disclosed the value of the investment, but it’s likely a relatively modest number given SoloPro’s oversubscribed $1.1 million round in June.
The company, which is based in Raleigh-Durham, is currently testing its service in select markets.
To submit an offer, you then work with a SoloPro partner agent, and once the process is done, the company will refund you the 3 percent commission a traditional agent would usually get. That’s not unlike what Redfin already does (except for in the otherwise beautiful state of Oregon, where a state law explicitly forbids brokers from doing this), though Redfin’s model is more akin to a modernized version of the buyer/agent relationship than a complete unbundling of it.
SoloPro’s $1.1 million round was led by Oxpoint Investments and Buchanan Ventures, with participation from Blue {Seed} Capital, Arnold Capital and a number of angel investors. Getting Lowe’s on board now is a major coup for the company.
“This investment by Lowe’s is a huge win for SoloPro and for our homebuyers,” said Tommy Sowers, CEO and founder of SoloPro, in a statement today. “This strategic investment by Lowe’s gives us a longer runway. Lowe’s investment also signals strong interest from the leader of DIY home improvement with connecting with DIY home buyers.”
While Lowe’s big-box stores may be ubiquitous, the company’s venture arm is still relatively unknown. Over the last year or so, however, Lowe’s has made a number of high-profile investments in housing- and real estate-related companies like Porch and Decorist.