Regulatory Pressure

The U.S. residential market is highly fragmented with over two million agents and 80K real estate brokerage firms. Regulatory headwinds is finaly forcing change to the antiquated model that elevated fees. Real estate commission levels should start to decline at a further pace versus historical levels. This will have a significant impact on incumbents. Especially ones that have high operating costs and debt on their balance sheet.

Cleardoor’s Solution

We simply provide better value and service while empowering home-sellers. They can list with Cleardoor at 1% and offer a buy-side cooperating fee at their discretion, if any. This includes a full service offering and from a unit is economics perspective, we generate strong margins with favorable cash flow.

Cleardoor is well-positioned with a capital-light business model with favorable unit economics – forecasting breakeven within year one. Immediate market response in our launch market 1Q2024 has been outstanding from the consumer.

Regulatory Headwinds

Regulatory pressure is fundamentally changing the reale state model in the U.S. on buy-side commission economics. This will have a material impact on the real estate brokerage landscape while driving consumer awareness.

Estimated 35% of agents will drop out of the industry with the uncoupling of real estate commissions

Accelerate consolidation across incumbents with high fixed operating expenses 

Opening the door for newer entrants that can provide optionality

Cleardoor is uniquely positioned with the lack of optionality in the market 

Cleardoor’s Position

Real estate brokerage firms primarily compete to attract real estate agents, not provide the best consumer experience.  As a result, most operate in the upper right quadrant (high cost, full service) while the lower cost providers either have friction with their service offering or the wrong operating model.

At Cleardoor, we are well balanced with a capital light brokerage model providing great service and value in the upper left quarant. We can offer a full service offering through optimized operations with streamlined processes while providing a superior customer experience.

We are forecasting Cleardoor’s brokerage division will be profitable in year one.

Significant Cost Savings

• Substantial cost savings on commission 
• Consumers will preserve equity – build wealth 
• Full service offering – not sacrificing on service

Full Service

• Everything a consumer would expect from an agent and more
• Optimized digital curb appeal – 3D virtual tours, professional photography 
• Agent advisory – doc preparation and negotiations 

Social Mission

• Empowering home-sellers, saving families thousands
• Positively impacting families/ communities one sale at time 
• National commitmen

Housing Problem

Macro headwinds, including higher inflation and interest rates are making traditional mortgage financing more expensive, increasing the need for sustainable, debt-free financing for home-buyers. Homeownership provides an ability to build equity and generate wealth.  First-time home buyers are at historical lows, representing only 26% of all home purchases – historical mean going back to 1981 is 40%, according to NAR. This combined with anemic levels of inventory is making home affordability out of reach for many prospective home buyers.  For single family investors, they desire performing assets in favorable metro markets with consistent yield that meet their buy-box while reducing turnover. 

Solution – Affordable Housing Financing

Cleardoor is an equitable online platform/marketplace that connects prospective home-buyers with third-party passive investors to finance and invest in residential properties through shared ownership. We help families move into their dream homes debt-free and assist investors to generate stable income without the stress involved in tenant and maintenance management through our property management division. Furthermore, through our brokerage, we can offer agent incentives on the buy-side. Home-buyers can make cash offers on properties and realize savings versus costly traditional financing. These acquired homes are smart enabled to reduce overall housing cost and minimize their carbon footprint.

Cleardoor equity was successfully introduced to a venture build studio in 2023 where it was de-risked through extensive market research and validation cycles. Market response has been strong and we are well positioned to launch across select markets with partners already in place.  

Engaged with over 1,000 consumers, investors and brodaer market participants. Favorable results validating business model. 

Proven Team

Decades of proven experience in real estate, technology, operations, finance and impact.

Market Validation

Launched out of American Family Insurance’s buildstartup studio – confirmed market demand, derisked model, and forged strategic partnership

Large TAM

First- time home buyers represent $800B+ serviceable obtainable market

Social Impact

We are committed to driving homeownership across the U.S. to positively impact local communit