Seattle startup Flyhomes recently acquired technology from San Francisco-based ZeroDown, a company backed by OpenAI CEO Sam Altman. Flyhomes, founded in 2016, has previously focused on helping consumers in the later stages of the homebuying process, offering products such as upfront funding and a Buy Before You Sell program. With the acquisition of ZeroDown’s AI-powered software, Flyhomes aims to expand its reach to consumers at the beginning of their real estate search. The revamped platform is now live in 28 U.S. states and Washington D.C., putting Flyhomes in direct competition with companies like Zillow Group and Redfin.
ZeroDown was originally focused on buying homes on behalf of buyers and leasing them back but later pivoted to developing an advanced home search portal powered by AI. This acquisition by Flyhomes, completed in January, has allowed them to integrate ZeroDown’s technology into their platform. The extensive data from around 40 public sources helps provide granular information about homes, and generative AI is used to answer questions from prospective buyers. This question-answer system is highly accurate, complying with the Fair Housing Act to ensure no questions that violate housing discrimination laws are answered.
The rollout of the AI assistant tool by Flyhomes comes at a time when there are tailwinds from the fallout of the National Association of Realtors commission lawsuit settlement. Buyers are required to sign agreements with their agents at the outset of the homebuying process, potentially driving more traffic to platforms like Flyhomes as buyers seek more information independently. The company plans to partner with outside loan officers and real estate agents to expand its footprint across the U.S., moving away from working with its own representatives.
Flyhomes has raised $190 million in equity funding to date, with a $150 million Series C round in June 2021. The company, ranked No. 45 on the GeekWire 200 list of top privately held Pacific Northwest tech startups, has faced challenges in the past two years due to the real estate slowdown, resulting in multiple rounds of layoffs. The terms of the deal with ZeroDown were not disclosed, but Flyhomes added 16 employees from ZeroDown to its team, including ZeroDown co-founders Laks Srini and Abhijeet Dwivedi. Srini is now Flyhomes’ CTO, while Dwivedi is the chief growth officer.
With its enhanced AI capabilities and expanded reach to consumers at the beginning of their real estate search, Flyhomes is positioning itself as a significant player in the real estate technology space. The integration of ZeroDown’s technology has allowed for a more comprehensive and detailed listing database, providing buyers with valuable information and answers to their questions. By leveraging AI and partnering with outside loan officers and real estate agents, Flyhomes is set to continue its growth and establish a stronger presence in the U.S. real estate market.
