A startup real estate broker that puts a twist on commissions just raised $2 million in seed funding led by an early Compass investor

September 12, 2019

Chase Marsh and Thomas Kutzman, co-founders of Prevu

Prevu, a digital real estate broker launched in New York City in 2017, has raised $2 million in a seed round led by Corigin Ventures, which was also an early investor in $6.4 billion Compass.
Prevu is exclusively for home buyers, and offers rebates on the 3% commission typically collected by a buyer’s agent.
Prevu says it can offer that rebate because it brings as much of the home-buying process online as possible, and only involves agents when necessary.
The company said that its average agent makes 36 deals a year. According to the National Association of Realtors, the median residential agent makes 12 deals a year.
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Prevu, an online real estate broker that began operations in New York City in 2017, just raised $2 million in a seed round led by Corigin Ventures, which was also an early investor in $6.4 billion brokerage Compass.

Thomas Kutzman, co-founder of Prevu, sees the company as part of the next wave of real estate brokers.

“The traditional industry is pulling people offline as soon as they can, instead of pulling them online in a more elegant way,” Kutzman told Business Insider.

Prevu is exclusively for home buyers, and says it offers up to a 66% rebate on the 3% commission typically collected by a buyer’s agent.

The startup says it can pay theses rebates because much of the buying process is handled online, and actual human agents are only called on when necessary.

As of now, the company is only operating in New York City, though it plans to use the seed round to expand. This seed round, which came 4 years after the company’s original launch in 2015, will also be used to develop new tools for home buyers. Corigin Ventures, which …read more

Source:: Business Insider

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