Real estate agency

Purplebricks flat-rate real estate agency plans New York expansion

Last year, the flat-rate real estate agency purple bricks expanded to the United States after building a successful business in the United Kingdom and Australia.

Purplebricks’ first foray into the United States was Los Angeles, a market selected because it “offers ideal conditions for market testing” and includes “concentrated population densities and a plethora of properties across all ranges of price, thus providing enormous benefits to sellers, buyers and agents.

The company recently expanded beyond Los Angeles to Fresno, Sacramento and San Diego.

Today, the company is preparing for the next phase of its expansion in the United States and is looking to the opposite coast.

Purplebricks announced earlier this week that it will expand to the New York area later this year and plans to be active in New York City by June 2018.

Purplebricks offers a flat listing fee that it says will set it apart from the competitive New York market. The company charges sellers a flat fee of $ 3,200 to list their home and a “very competitive” buyers agent commission of 2.5% once the home is sold.

According to Purplebricks, New York’s designated market area, which includes more than 20 million people in some counties in New York, New Jersey and Connecticut, is “uniquely suited” to what the company has to offer.

The company says real estate commissions can be as high as 7% in the New York City area, and with an average sale price of around $ 560,000, its package model will save buyers thousands of dollars.

According to the company, on a $ 560,000 home, a seller would save $ 13,600 by using Purplebricks instead of paying the standard real estate brokerage commission.

In addition, the high population density and volume of transactions in the New York area should “allow for accelerated brand awareness.”

“Purplebricks has broken down barriers in an industry that has always been reluctant to change. We provide a simple and convenient way for buyers and sellers to do business and save thousands of dollars at the same time, ”said Eric Eckardt, CEO of Purplebricks US. “With Purplebricks, these sellers and buyers can take advantage of the changes to the process and the prices they charge. We’re excited about our planned entry into New York’s DMA, which is the largest in the United States with over seven million homes. “

According to the company, Purplebricks may charge less than other real estate companies because it offers a technology-driven sales experience.

Sellers are assigned a dedicated “local real estate expert”, who provides advice and full service until closing. In addition, local real estate experts provide benchmarking analysis to determine the selling price, organize photography and digital marketing, and organize a 3D virtual tour.

Sellers can also use Purplebricks’ “easy to use online platform which provides an unprecedented level of control and transparency over the entire sales process.”

Purplebricks is “currently recruiting” licensed real estate professionals in the New York area to serve as the company’s local real estate experts.

“It is a sign of confidence in the potential of the US business that we are announcing today our expansion to cover both the east and west coasts, with our planned entry into the New York market”, Michael Bruce, founder and CEO of the Purplebricks group. , noted.

“With above-average commission rates and transaction volumes, New York was the natural first step on the East Coast for Purplebricks. Our local team has a deep understanding of the US market and considerable experience in New York City in particular, ”added Bruce. “Although early on, we are encouraged by the exceptional quality of the LREEs that we are able to recruit, which reinforces our belief that we will provide better service to our clients while saving them thousands of dollars and delivering returns. attractive to our shareholders as the company grows.

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