How UK real estate disruptor Purplebricks is staking its claim in the US
Four years ago, Purplebricks came onto the real estate scene in the UK with a unique proposition: instead of dealing with pricey commissions, home sellers who go with Purplebricks as their real estate agent only pay a fixed-rate fee of £849, regardless of whether their home is sold.
The model has proven so successful that Purplebricks expanded into Australia just two years after its UK launch in 2014. Last year, the online real estate firm made its first foray into the US when it set up shop Los Angeles. The company has since expanded to San Diego, Sacramento and Fresno in California, and recently announced that it’s now available in select counties across New York, New Jersey and Connecticut.
Aside from its flat-fee approach, Purplebricks differentiates itself from more “traditional” brokerages by offering much of its services online. While all sellers have access to a “dedicated local real estate expert” via Purplebricks, they’re able to arrange showings, make offers and negotiate sales on their own using the company’s website or app. Homeowners who opt to sell their house with Purplebricks also receive things like professional photography, 3D virtual tours, and listings on popular real estate sites like Zillow and Trulia.