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Alternative brokerage model Prevu secured $6 million in a Series A round of funding to continue providing its “Carvana-like,” technology-first brokerage service.
Investing in the round, according to the Dec. 14 press release sent to Inman, are Citi, RiverPark Ventures, Metropolis Ventures, Simplex Ventures, Winklevoss Capital and Liebenthal Ventures.
Chase Marsh is co-CEO of Prevu and said in a statement that savings are critical for consumers, a concept at the heart of a broad-reaching series of lawsuits currently upending industry compensation models.
“In an era where affordability is a growing concern for homebuyers, Prevu is committed to making the dream of homeownership more attainable,” Marsh said. “This financing round will allow us to continue to accelerate our growth, and we are excited to partner with our new investors who bring a tremendous amount of insight on real estate and fintech to contribute to our journey.”
Prevu spreads its technology evenly between homebuyers and the teams serving them. Collaboration is primarily chat- and email-driven. Buyers work with both a concierge and an agent, the former elevating discussions to the latter as the relationship deepens. It provides buyer rebates stemming from the savings created by its digital efficiencies.
Once onboard, buyers are offered access to Prevu’s collaborative search portal, from which they can save homes, ignore bad matches, request tours and submit offers via the “call-to-action” block, a section of features designed to engage users.
Every listing in Prevu’s home search experience displays the potential rebate amount. The offer screen asks about funding source and down payment amount, and it encourages buyers to upload a qualification letter or some form of financial wherewithal.
The company states its model is responsible for $1.5 billion in home sales. The company emphasizes buyer representation, another potential reason for its newest investors’ interest since buyer agency fees are the primary driver of the ongoing commission lawsuits.
In October 2022, Prevu acquired the remaining lending service assets of its collapsed West Coast competitor, San Mateo, California-based Reali.
Marsh said the deal made it very clear where the company is heading.
“Real estate brokerage and mortgage are colliding as there is a developing super cycle of vertically-integrated offerings for consumers. “Our acquisition of mortgage technology is a clear next step toward Prevu’s upcoming entrance into the mortgage vertical.”
Prevu is joined in its unique space by a few companies, such as Torri Homes, Luke and Aalto.
Collectively, these brands have remained relatively under the radar due to the stigma applied to technology-heavy consumer representation and salary models. However, if there was ever a gap in the market through which these models can shine a brighter light, Sitzer | Burnett may have just pried it open.
