A startup residential brokerage that’s battling the sacrosanct home sale commission structure has raised another $4 million for its war chest.
Trelora, which charges buyers and sellers a flat fee instead of the customary commission, disclosed in an SEC filing Dec. 27 that it has collected $4.3 million from investors.
The company, which declined to comment, has raised upward of $5 million to date, according to a tally of its past filings with the SEC.
The all-equity raise, which includes outstanding convertible notes changing from debt to equity, marks the third time Trelora has passed the hat to investors since its founding in 2011, according to SEC filings.
Trelora, a 2015 graduate of startup accelerator Techstars Boulder, aims to change the usual pay structure in a residential real estate brokerage.
Agents at most brokerages typically charge commission based on the final sale price of a home, letting listing fees hover between 2.5 percent and 3 percent.
Trelora charges buyers a flat fee of $3,000 to see houses with a Trelora employee, a customer representative said by phone Wednesday, or $2,500 if they tour houses independently but hire a Trelora agent to make an offer. Trelora charges $2,500 to sellers, the representative said.
The firm, which operates in the Denver metro real estate market, on its website Wednesday had 25 home listings in the city of Denver out of 53 total listings in the metro area.
In 2015, it announced plans to open an office in Fort Collins, but on Wednesday a representative said Trelora does not have an office there. Trelora has no listings in Fort Collins on its website.
Trelora is not the only startup fiddling with the standard fee structure.
Before the new year, fellow Denver startup Redefy charged a flat-fee of $2,500 when it worked the sell side of a deal; it raised that fee to $3,000 on Jan. 1. According to its website, it has expanded to 20 states. Some of its offices are corporate owned; others are franchises.