You've probably sold a home before and know how difficult it can be to list, show, negotiate, and close the deal.Because it is so painful, many people delay it as long as they can because they don't want to deal. This results in fewer homes being on the market which increases housing shortages in already tight markets like the San Francisco Bay Area.Aalto, a startup that aims to address this problem, has created a new type of homeowner market. This private marketplace doesn't rely on the MLS and allows sellers to have more control over when and how their homes are sold, listed and shown. Today, Aalto announces that it raised $13 Million in a Series A round of funding led by Sequoia Capital.Background Capital, Defy Partners and Maple VC participated in the financing. Greg Waldorf, the original investor at Trulia, also participated.The Aaltos online marketplace was launched in April this year and connects homeowners with buyers. Aalto claims potential sellers can list their homes on the platform in just five minutes. This is a far better process than traditional listings that take up to five weeks. Aalto launched in the Bay Area and has since cultivated a network that includes more than 30,000 buyers. More than 20 homes have been sold through the marketplace. A total of 85 homes are currently listed on the platform. On average, one new listing is added each day.Ironically, Aalto CEO and founder Nick Narodny was born and raised by real estate agents. While he acknowledges that startups platforms could pose a threat to the sector, he also notes that there are benefits for both sellers and buyers.The Aalto platform currently lists 5-10% of the total inventory available in competitive markets such as Dublin, Fremont and Mill Valley. Narodny stated that the company is working to bring more homes to the market sooner.He said that while buying or selling a house is one of life's most important events, it can also be a time-consuming and tedious process.Aalto hopes to increase the number of homes in the Bay Area. It streamlines the process homeowners use to list their home, without any third-parties or contracts. According to Narodny this dramatically lowers the barrier to selling, and homes are sold on average four and a quarter months sooner than traditional real-estate processes.A preview listing feature allows sellers to list without any commitment. Sellers can also create a waiting list of qualified buyers while they are considering a sale.Narodny explained that we pull the tax records and other information to make it easy. Then, we ask the seller for a Q&A. Sellers can then view interested buyers, prequalified buyers or those who can offer all cash.Narodny stated that the process is less intrusive because sellers have more control over who and when they see their house. Sellers can arrange virtual and in-person showings according to their schedule. They can also sell their homes according to their own timelines, whether they are selling in a few days or a few months.A San Francisco-based hand doctor recently listed his home on Aalto with the intention of moving by the end of October. He allowed only a few people to visit the house and more than twenty people expressed interest. He was able sell the house on a timeline that was more favorable for him.Narodny stated that people can sell on their terms and have more connections. The most popular sellers on the platform are busy professionals like the surgeon with director or above titles, and those who have growing families.There is also an economic benefit. According to Narodny, sellers will make on average $44,000 more by removing an agent or middleman from the home-selling process. A startup charges a 1% fee instead of the 2-2.5% commission charged by an agent. Aalto also has licensed experts who can help sellers with difficult tasks.According to Narodny, sellers can create descriptions of their homes that are more personal than an agent's.He said, "We have them tell our own stories about their homes."This approach allows them to keep more of their personal information private. An MLS listing will, for example, show the date and time a property was listed. A listing on Aalto will not include this information. Similar to Airbnb, the seller's exact address is not shared. It is only a radius.Buyers will enjoy the convenience of being able to create instant alerts, join waitlists, and schedule showings all from one platform. Narodny explained that buyers can anonymously prequalify sellers and share their information with them.Bryan Schreier, a partner at Sequoia Capital believes that real estate is one the last great industries to have a 1900s history.He said that it is a difficult process in which the seller doesn't have much visibility and the buyer waits to see the results of every bid. Aalto is the company that has revolutionized how homes are purchased and sold. It is more than a listing website. Instead of being realtor-oriented, it reinvents every aspect.The company is planning to expand beyond the Bay Area into other major metropolitan realty markets across California and the United States. It plans to use the new capital to improve its technology.Narodny maintains that the platform is not malicious, and may be perceived as a threat to some agents.My family is very close to me. He told TechCrunch that it is something he and I often talk about. Aalto is truly additive, I believe. They are still our agents and we will continue to work with them.
