- Pros: Houwzer charges a flat listing fee of $5,000 to home sellers as opposed to the traditional 3% commission which leads to substantial saving for high-priced homes.
- Cons: Houwzer agents are salaried and handle 3x more clients than traditional realtors. Lack of incentives and time leads to less personalized support. Houwzer is only available in five states.
- Bottomline: We do not recommend Houwzer if you want to save on commissions. You will save more money and get listed faster with Houzeo.com MLS Listing. View your savings.
Houwzer is a discount real estate and mortgage brokerage based in Philadelphia, Pennsylvania. They are a certified B Corporation, meaning they are an organization that is committed to solving social and environmental problems.
What is Houwzer Real Estate?
Houwzer real estate launched in Philadelphia in 2014. Houwzer employs proprietary technology and a team of full-service salaried agents and mortgage advisors to offer the basic services of traditional realtors to home sellers and home buyers.
While most brokers charge 2% to 3% commission, Houwzer advertises huge savings for home sellers with a flat fee of $5,000. At higher price points, Houwzer’s pricing structure can lead to savings.
👉 Discount Real Estate Brokers: Check out America’s 10 Best Discount Real Estate Brokers and Companies (2023)!
|Type of Company||Flat rate full-service brokerage and mortgage firm|
|Coverage||Florida, Maryland, South Jersey, Pennsylvania, Virginia, and Washington, DC|
|Caters to||Both home buyers and home sellers|
|Headquarters||Philadelphia, Pennsylvania, USA|
|Customer Reviews||4.5 out of 5 stars (Houwzer reviews)|
How Does Houwzer Work?
As a typical discount brokerage, Houwzer Realtors® & Mortgage draws clients by promoting commission savings. It offsets the decreased rates by:
- Handling up to 3x more clients per agent than a traditional realtor
- Cutting down on its overhead and operational costs with salaried employees
- Offering additional savings to sellers who make purchases with Houwzer
- Selling add-on title and mortgage services to its current clients
Like other discount brokerages, Houwzer relies on its team to serve a high volume of clients to offer discounts. So, you will likely be competing with a lot more customers for your agent’s attention, leading to less hands-on assistance and other drawbacks.
Houwzer’s Business Hours
|Mon-Fri||9:00 AM – 5:00 PM|
|Sat (Closed on Sunday)||10:00 AM – 2:00 PM|
👉 NOTE: Since Houwzer agents are employees working regular 9-5, it may be difficult to reach them outside normal business hours.
Where Does Houwzer Operate?
Houwzer is currently available only in five states, as well as Washington, D.C.
|Pennsylvania||Philadelphia, Bucks County, Chester County, Delaware County, Lehigh County, Montgomery County, Northampton County|
|South Jersey||Burlington County, Camden County, Gloucester County|
|Virginia and Washington, DC||Arlington County, Alexandria, Fairfax, Falls Church, Loudoun County, Manassas, Manassas Park, Montgomery County, Prince William County|
|Florida||Orlando County, Duval County, Baker County, Clay County, St. Johns County, Hillsborough County, Pinellas County, Manatee County, Orange County, Osceola County, Polk County, Seminole County, Volusia County|
|Maryland||Anne Arundel County, Baltimore, Carroll County, Harford County, Prince George’s County, Harford County, Frederick County, Cecil County, Calvert County|
Houwzer for Home Sellers
Houwzer provides some standard services to home sellers like:
- Property pricing
- MLS Listing
- Professional photography
- Negotiations with buyers
- Contract consultation
- Closing coordination
As a home seller, you will work with a different agent at every step instead of one dedicated agent who will see you through the entire home-selling process. Houwzer real estate offers:
- Flat Rate: Houwzer charges a flat listing fee of $5,000 paid at closing instead of the regular 3% commission. Find out why this discount is not ideal for less expensive homes.
- Convenience Offer: Sellers opting for Houwzer’s Convenience Offer will receive a cash offer from them. This will not only get them better offers from other prospective buyers, but also pre-qualify them for a mortgage on their home purchase.
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- 👩💼Qualified and Reputed Agents
- 💰You list your home at a very reasonable price within 24 hours
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- ❌ You can cancel anytime with no obligation
Houwzer for Home Buyers
A Houwzer agent will guide you through the purchase process, but it does not offer any rebates or savings for buyers who aren’t also selling a home with Houwzer. It mainly offers:
- Buyside® Platform: Houwzer’s Buyside® platform allows buyers to view listings before they go live on the market.
- Cash Advantage: Houwzer empowers buyers to make a cash offer on a house using Houwzer’s funds. The buyers should be pre-approved by Houwzer Mortgage to avail of the cash advantage option.
Other Services by Houwzer
In addition to the above services, Houwzer has a buy-and-sell bundle, an in-house title insurance company, and a mortgage brokerage.
1. Houwzer’s Buy & Sell Bundle
Sellers who opt to purchase a property along with selling their house with Houwzer get a transferable refund of $2,500 on the $5,000 flat fee.
2. Houwzer’s Mortgage Services
Homebuyers looking to buy a new home or refinance their current one can enlist Houwzer’s mortgage advisor services. It will help you obtain discounted rates from lenders and take care of your application procedure.
Currently, Houwzer offers mortgage services only in Pennsylvania, South Jersey, Maryland, DC, Virginia, and Florida.
3. Houwzer’s Title Services
Houwzer launched its own title company, Houwzer Title in 2018, through which it offers settlement services to home buyers and sellers. Items like title insurance are taken care of here.
👉 Why Title Insurance is So Expensive: Watch this short video to learn everything about title insurance in the USA!
How Much Do You Save with Houwzer Real Estate?
As a home seller, you also pay the buyer’s agent commission. Typically, it goes up to 2.5% of the selling price. Here’s a breakdown of the fees you pay when selling with Houwzer:
|Houwzer Flat Listing Fee||$5,000|
|Buyer’s Agent Commission||2.5% of the home’s final selling price|
A high buyer’s agent commission could attract more offers for your home. Having said that, Houwzer’s flat rate might not always lead to big savings.
👉 Not Suitable for Homes Priced Below $170,000
Houwzer’s business model as we saw earlier can help save home sellers thousands of dollars for a pricey house. But for properties under $170,000, Houwzer can cost MORE than a conventional realtor.
Going by the conventional commission of 2.5 to 3%, you will pay $4,250 to $5,100 to a full-service realtor. As opposed to that, Houwzer will provide less personalized support for the same cost.
👉 Many Companies Offer Buyer Rebates Without Forcing You to Sell with Them
Customers who use Houwzer for both buying and selling are eligible for a $2,500 refund or closing cost credit on their second transaction.
Now, this might look like an attractive bargain, but there are many other discount real estate brokerages and companies that offer rebates to home buyers WITHOUT the necessity to sell with them. Some brokerages like Trelora even pass on rebates to buyers in percentages so that you will save much more than $2,500.
Calculate Your Savings: Traditional Realtors vs Houwzer vs Houzeo
Houwzer Real Estate Reviews
We scoured hundreds of Houwzer reviews online on different credible platforms and found some common praises and complaints about the company.
Houwzer Positive Customer Reviews
✅ Ken Adams was thrilled with his agent’s negotiation skills which helped him save significantly with Houwzer.
✅ Hong found Houwzer’s Buy & Sell bundle to be a “perfect” option for relocation.
✅ Peter from Washington was thrilled to save the 5% and 6% realtor commissions for his high-value home with Houwzer.
Houwzer Negative Customer Reviews
❌ Michael was displeased that the Houwzer agents were too busy to give him personalized attention.
❌ Peter found Houwzer’s communication to be lacking. He couldn’t get a dedicated point of contact and service from Houwzer.
❌ This client highlighted Houwzer’s inexperienced listing agent who undervalued his home. He later sold his house without an agent for $70K more than Houwzer’s estimate.
❌ Houwzer could not provide an agent who had experience selling higher-priced homes to this client.
❌ Robert Glenn highlighted the inefficiency of Houwzer agents who were too over-extended and delayed his transaction and closing.
Houwzer Reviews: Pros & Cons
As the above Houwzer reviews demonstrate, the company’s business model is not for everyone. You’re better off with its alternatives if you need more personalized attention or you’re selling in a buyer’s market.
- Houwzer Rebate
Buyers who purchase a property from Houwzer and later sell their old property with Houwzer are eligible for the Houwzer Rebate, reducing their listing fee from $5,000 to $2,500.
- Good Savings for High-Value Homes
Houwzer’s value shines through at higher price points as seen in this Houwzer review. Unlike percentage-based pricing models, Houwzer’s fee remains fixed even as the home price increases. That means, the more expensive your home, the more you stand to save by listing with Houwzer.
- Lack of Personalized Support
Houwzer cuts down on its operating costs to offer discounts. Its small team of agents handles 3x more clients than a traditional realtor. It is difficult for one agent to work with such a wide clientele and provide personalized support to all.
- No Dedicated Point of Contact
With Houwzer, you work with a team instead of a single, committed agent. So, at every stage of the sale, your point of contact changes.
- Risk of Miscommunication
Since the platform does not align you with a single agent but with various real estate agents at different stages, it can easily lead to miscommunication.
For instance, any miscommunication between your pricing agent and the listing agent will put you at a disadvantage when negotiating with buyers.
- Limited Availability
Houwzer Inc. serves only a select few cities across seven states in the USA, including Florida, Maryland, South Jersey, Pennsylvania, Virginia, and Washington, DC.
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- Salaried Agents Have No Incentives
All of Houwzer’s agents are salaried employees, and they don’t receive the usual commission incentives. This means that Houwzer Inc. agents still get paid the same if a house gets sold below the market value. In effect, this impacts the agent’s performance and commitment to selling your house.
Alternatives to Houwzer.com
|Rank||Discount Real Estate Broker / Company||Listing Fee||Max Savings||100% Online||5-Star Reviews*||Nationwide Coverage||Mobile App|
|4.||Ideal Agent||2% |
- ✍️ SAVE: With Flat fee MLS, you will save thousands of dollars in listing fees. You also get the option of selecting the service you want and customizing the packages to your seller’s needs.
Houwzer vs Houzeo
Houwzer’s flat rate of $5,000 may not seem appealing compared to Houzeo’s pricing package—only $199 to start listing. If you’re looking for the most advanced Flat Fee MLS/FSBO platform that offers limitless leverage and cutting-edge technology, visit Houzeo and list your home.
At Houzeo, packages are tailored to suit your home-selling needs, from essential to full service. Along with the local MLS, you’ll be listed on big online platforms like Realtor.com, Zillow, Trulia, and 100s more other websites.
👉 Houzeo Reviews: All You Need to Know about Houzeo.com!
Other Options You Should Consider
1. Sell to iBuyers
iBuyers make an offer on your property within 24-48 hours and can close within 7 days or more. Most iBuyers like Opendoor and Offerpad are also known to offer the Fair Market Value (FMV) for your property.
Selling to an iBuyer has certain significant drawbacks. These include:
- Limited coverage, restricted to metro and urban areas
- Strict eligibility criteria without exceptions
- Non-negotiable offers
- 5% service fee
- 2% – 8% repair costs
⭐ Our Take: We recommend iBuyers if your house meets the iBuyer company’s eligibility criteria.
👉 iBuyer Reviews: Check out rankings, pros, cons & alternatives of top iBuyers in America
2. Sell to “We Buy Homes for Cash” Companies
Unlike iBuyers, “We buy homes for cash” companies help you sell your house as-is fast. They can even close within 7 days or any date you choose. “We buy homes for cash” companies also make cash offers for homes outside metro areas or in difficult-to-sell locations.
Here’s why traditional cash home buyers could be a bad option for you than an iBuyer:
- They make lowball offers and offer only 50% – 70% of market value.
- Their offers are non-negotiable
⭐ Our Take: We recommend selling to a cash home buyer if you are selling a distressed house “as-is” without looking for the best price.
👉 “We Buy Homes for Cash” Companies: Check out America’s biggest cash home buyer companies in 2023
“We Buy Homes for Cash” Companies Near You
3. Sell FSBO With Flat Fee MLS Services
List on MLS with a Flat Fee MLS service to get your house on the market within just 24-48 hours. Selling For Sale By Owner has increased substantially in the past few years, with 77% of FSBO homes being sold in less than 2 weeks.
Flat Fee MLS is one of the best ways to sell your house fast, and it has 4 major benefits:
- MLS is the fastest way to hit the market, plus your listing is syndicated to Zillow, Realtor.com, etc.
- Your listing gets maximum exposure.
- You can negotiate all offers.
- You skip paying commission or service fees.
⭐ Our Take: We recommend Flat Fee MLS companies for most home sellers. They are fast, and you will save thousands in commissions.
👉 For Sale By Owner Websites: Check out the rankings for America’s best FSBO websites!
Bottomline: Should You Consider Houwzer Real Estate?
We do not recommend Houwzer to most home sellers and buyers. It only helps in substantial savings if you’re buying AND selling with Houwzer or selling a house priced above $500,000.
In addition, Houwzer operates with a small team that handles over 3x more clients than a traditional real estate agent. Also, you will work with a different person during each stage of your sale. This can lead to costly mistakes and oversights.
You can save on the 3% listing agent commission and reap the benefits of a technology-first platform like Houzeo to sell your house faster.
When you list on the MLS via Houzeo, you get access to tools only real estate agents have! A comprehensive dashboard, 100% digitized paperwork, and responsive customer support teams to help home sellers in their quest to get a top-dollar rate on the sale of their homes.
👉 Houzeo Pricing: Check out Houzeo’s pocket-friendly listing packages for home sellers
Frequently Asked Questions
1. Is Houwzer in Florida?
Yes, Houwzer serves many counties in the state of Florida, including Orlando, Duval, Baker, Clay, St. Johns, Hillsborough, Pinellas, Manatee, Orange, Osceola, Polk, Seminole, and Volusia.
2. How is Houwzer rated?
Currently, Houwzer has an average customer rating of 4.65 across credible review platforms like Google, Yelp, and Zillow.
3. What days are Houwzer open?
Houwzer is open from Monday through Friday from 9 AM to 5 PM, and from 10 AM to 2 PM on Saturday. The office is closed on Sunday.
4. Where is Houwzer's headquarters?
Houwzer headquarters is located in Philadelphia, Pennsylvania, United States.
5. Who invested in Houwzer?
Houwzer has 12 investors including Ben Franklin Technology Partners, GoPhillyFund, Edison Partners, Admiral Capital Group, and more.
6. Is Houwzer Real Estate legitimate?
Yes, Houwzer is a licensed real estate brokerage in the states where it operates.
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