A new real estate start-up could completely flip the switch on traditional brokerages in Dallas. Prevu has announced the closing of its $2 million seed funding for a customer-focused digital home-buying platform. It promises to “deliver industry-leading efficiency and savings,” according to Matthew Chudoba, a publicist with ICR, Prevu’s outside public relations counsel promoting the company’s launch out of Norwalk, Conn.
“We were incredibly frustrated by our own experiences in buying real estate, and we sought to create a truly intuitive model that gives control back to consumers and eliminates a lot of the stress involved,” said Thomas Kutzman, co-founder of Prevu. “Our Smart Buyer platform was created to address these inefficiencies and provide greater control to buyers while delivering rebates that help to offset the significant expenses involved in purchasing a home.”
Prevu passes two-thirds of its commission back to each buyer who completes a purchase using Smart Buyer, which brings with it a rebate of up to 2 percent. Customers who purchased a home using Prevu receive average rebates of $23,000. The aim? To make commissions more transparent, signifying a 180-degree turn from the traditional brokerage model. Agents are already tasked with creating more and more value for buyers and sellers as disruption in the real estate industry becomes the norm. What next?
“The bottom line is that the traditional residential real estate industry is antiquated and inefficient with the majority of agents pulling clients offline at the first opportunity to control the process,” said Thomas Kutzman, co-founder of Prevu. “Buyers no longer need to rely on agents as the gatekeepers of information, which is available at their fingertips online.”
To real estate agents, them’s fightin’ words.
A Plan For The Future
Prevu’s $2 million seed funding round was led by Corigin Ventures, a seed-stage venture capital firm with numerous successful investments. While Prevu hasn’t announced plans to locate in the Dallas area yet, the company currently operates in the New York metro area and Connecticut. The funding round recently announced will enable Prevu to grow and expand, company reps said.
Ryan Freedman, general partner at Corigin Ventures, joined Prevu’s board of directors upon completion of the seed round.
“We’ve had our eyes on this space ever since we invested in Compass in 2012,” Freedman said. “The traditional homebuying process is ripe for change, as buyers are empowered now more than ever to take control into their own hands – especially when it comes to search and exploration. Prevu has built an amazing brand around working with ‘smart buyers,’ and these consumers are thrilled to be able to put 2 percent of their purchase back into their pockets.”
Chase Marsh, co-founder of Prevu, said the company is on a mission to save homebuyers money.
“We have invested heavily in understanding the homebuyer, creating an environment that anticipates their needs and delivers a confidence-inspiring experience,” he said. “Access to information has empowered consumers, creating less of a need for agents to be involved in the early stages of the process. Our platform recognizes this shifting consumer preference and gives consumers the tools they need to manage the process at their own pace, on their schedule and with the promise of a compelling, meaningful rebate.”