Purplebricks, which bills itself as “next-generation” real estate agency, is launching in the U.S. after building successful businesses in the United Kingdom and Australia.
The company, which offers a flat fee for home sellers along with other technological advances, will roll out its service in the Los Angeles market first.
“There has been a longstanding belief that there is a lack of trust and transparency within the real estate industry. Our mission is to break down those barriers by providing a simpler and more convenient way for buyers and sellers to conduct business while saving them thousands of dollars in the process,” Eric Eckardt, Purplebricks U.S. CEO said.
“Our premise is simple – to provide buyers and sellers with experienced agents to represent them and the resources, knowledge and support to make the most informed decisions possible,” Eckardt added. “The process is enhanced by our proprietary online platform that offers greater freedom and flexibility for both sellers and buyers. It is certainly great news to be able to help customers on both ends of the deal save money.”
Purplebricks claims that it saves homeowners money by charging a flat fee of $3,200 to sell their home. And while the sellers are still responsible for the standard buy-side commission, Purplebricks says that its “transparent” fee structure removes some of the financial strain of selling a home.
The company claims that one of the things that sets it apart from other real estate agencies is its “customer-centric platform,” which “enables full transparency through real-time communication between buyers and sellers.”
The company says that its portal provides sellers with an “unrivalled level of control and transparency” over the sales process from approving listing particulars, arranging viewings and soliciting advice to observing buyer feedback, receiving offers and negotiating a sale.
But, the sellers don’t do it alone. The company says that sellers are assigned a “local real estate expert,” who will provide advice throughout the deal.
As part of its service, Purplebricks helps each homeowner stage a property tour via an immersive 3D rendering using Matterport, a service provider that specializes in creating virtual reality environments.
Purplebricks also lists the home on major online marketplaces like Realtor.com, Zillow, Trulia, and the local MLS.
Buyers can also use Purplebricks platform to view all available property listings on the market, instantly book single or multiple showings in a row with Purplebricks properties, view the 3D model of a property, and negotiate offers in real-time.
Buyers who use Purplebricks as their agent will receive a $1,000 rebate on closing.
For agents, Purplebricks says that it will only work with “experienced agents who are dedicated to providing exceptional customer service.”
All Purplebricks agents benefit from an “extensive training program that covers all aspects of Purplebricks’ culture and business model, designed to help them work more effectively,” the company says.
Additionally, the company gives its agents territorial exclusivity, determined by zip code, with resources available for them to build and grow their business.
The company launched in the U.K. in 2014 and in Australia in 2016. According to Purplebricks, the company is now the “leading real estate brokerage in the U.K. based on its new listings and sales run rate.”
And now, the company is coming to the U.S.
As for why Purplebricks chose Los Angeles as the location for its maiden voyage in the U.S., the company said that California “offers the ideal conditions for market testing,” adding that the state has the “sixth largest economy in the world, concentrated population densities and a plethora of properties across all price ranges, thereby providing enormous upside to sellers, buyers and agents.”
Michael Bruce, founder and global CEO of Purplebricks, said the company is excited to launch in the U.S.
“We are very proud to see that our collective dream of launching Purplebricks into the U.S., one of the most competitive and expensive commission-based real estate markets in the world, has finally happened,” Bruce said.
“This is a logical next step in our broader growth strategy and we are confident that our customer centric culture and unique value proposition will be well received by sellers and buyers alike,” Bruce added. “While we have been highly successful in other markets, our U.S. company and management team have adapted and customized our business model for the market. We look forward to providing great service and saving people thousands of dollars.”