BidMyListing, a US-based platform that connects sellers with real estate agents who then "bid" for the chance to sell their home, has raised $15m to scale its expansion.
The funding round, led by Deer Park Road Management Company, takes the company's total investment to $20m since it launched in 2021.
BidMyListing runs formal auctions for agents local to home sellers' neighbourhoods who make cash bids for the rights to the property listing.
Sellers choose agents by reviewing bids, which also include proposed commissions, listing terms and a marketing strategy.
The company's website says "With BidMyListing, you're not selling your home, you're selling your listing"—with the unique claim that homeowners actually get paid anywhere from $700-$3000 for listing their property on the platform, as well as getting to choose which agent to work with.
Matt Proman, founder and chairman of BidMyListing, said:
"Since its launch, BidMyListing has generated more than 2,000 listings from motivated homeowners looking to connect with real estate agents representing just over half a billion dollars in property value.
"The traction that we are seeing from home sellers and real estate agents has been tremendous. It’s a clear indicator that BidMyListing represents the future of selling real estate.
"Homeowners are lining up to work with us knowing they can receive cash upfront from a qualified agent of their choosing – while agents are relieved to finally have the opportunity to buy predictable listing inventory instead of using an unpredictable spend to acquire leads. It’s a win-win for both the homeowner and the agent."
BidMyListing was founded by entrepreneur Matt Proman and celebrity agent Josh Altman in 2021.
In laying out the company on launch, Proman said BidMyListing "enables [agents] to aggressively bid on the listings that fit their criteria, refine their portfolio of properties, and fast-track sales, especially those new to the field."
However, BidMyListing's model has been criticised as being a race to the bottom for agents undercutting each other to win listings.
Oleg Bortman, associate broker and co-founder at The Brokery, said in South Florida Agent magazine:
"I don't see any benefit for the agent. The agent is just paying for a lead at a high price, not knowing how much the seller is willing to pay them for their service.
"I still don’t understand why an agent would offer money to list a potential seller’s house without meeting a seller in the first place."