New York-based digital home buying company Prevu, which identifies itself as a customer service-oriented platform, has closed a $2 million seed funding round, according to a release by the company.
Corigin Ventures led the round, with Kairos and the AVG Basecamp Fund contributing.
Prevu said it stands out from the rest of the digital home buying options by focusing on the buyer experience.
“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. Buyers no longer need to rely on agents as the gatekeepers of information, which is available at their fingertips online,” said Co-founder Thomas Kutzman. “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.”
Prevu also aims to set itself apart in the commission department. While most buyers’ agents will keep all of the 3 percent commission on a sale, Prevu passes two-thirds of the commission back to each buyer who completes a deal on the site, which is a rebate of up to 2 percent. Prevu said some homeowners have received an average rebate of $23,000.
“Prevu has been on a mission to save homebuyers money since launching our Smart Buyer platform in 2017. We have invested heavily in understanding the homebuyer, creating an environment that anticipates their needs and [delivering] a confidence-inspiring experience,” said Chase Marsh, co-founder of Prevu. “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.”
Prevu’s founders said they noticed that traditional real estate agents only spend about 30 percent of their time dedicated to customer service and the rest on looking for new clients. The founders said that the platform’s technology enables a network of local experts to complete more deals while being able to focus more on customer service.