Compass cofounder Ori Allon thinks easy access to data is going to break open the real estate market, and his $800 million startup took another step in that direction Wednesday by releasing a mobile app that gives real-time national data to potential home buyers and renters.
Compass was founded in 2013, and while it’s more or less like a traditioanl broker, the company says its technology can reduce the time and friction of buying and selling a house.
Compass works on both sides of the equation: agent and consumer.
When Business Insider spoke to IVP General Partner Todd Chaffee, a big Compass investor, he said what had really impressed the firm about Compass was its agent-side technology. This tech has helped Compass grow to 22 cities and attract more than 1,000 real estate agents and employees.
But this new app, which was previously only available in New York, is equally focused on buyers as well. Compass has over 50 engineers on staff, and their latest creation is meant to replace quarterly market reports. The app, which is available in Compass markets like New York, DC, Boston, Miami, and LA, gives both agents and consumers constantly updated housing data.
CompassIn the app, you can search by standard things like neighborhood, number of bedrooms, price range, and so on. But you can also look at more advanced metrics, like year-over-year analysis of median price per square foot, days on the market, and negotiability.
The app also lets Compass agents create a custom PDF report to send to their clients, if the customer doesn’t want to dig into the app.
Allon told Business Insider that before launching Compass, when he talked to buyers, sellers, developers, and agents, everyone felt they were getting the short end of the stick. And when everyone feels like they are getting screwed, the market is probably inefficient, he concluded.
Allon’s answer was technology.
A recent report from The Real Deal says Compass is looking for $50 million in fresh funding, at a $1.2 to $1.3 billion valuation – the company has raised $135 million so far.
To prove it’s worthy of that valuation, Compass investors are expecting the startup to push beyond being a traditional brokerage and disrupt the market with proprietary technology.
The nationwide launch of this app could help Compass make its case.