Flat-rate real estate agency Purplebricks plans to expand into New York
Last year, 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 the ideal conditions for market testing” and includes “concentrated population densities and a plethora of properties across all price ranges.” price, thus offering a huge advantage to sellers, buyers and agents. »
The company recently expanded beyond Los Angeles to Fresno, Sacramento and San Diego.
Now the company is preparing for the next phase of its US expansion and 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 by June 2018.
Purplebricks offers a flat listing fee, which it says will set it apart in the competitive New York market. The company charges sellers a flat fee of $3,200 to list their home and a “very competitive” 2.5% buyers’ agent commission once the home sells.
According to Purplebricks, New York’s Designated Market Area, which includes more than 20 million people in parts of New York, New Jersey and Connecticut, is “especially well suited” for what the company has to offer.
The company says real estate commissions can be as high as 7% in the New York area, and with an average sale price of around $560,000, its flat-rate 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.
Additionally, the New York area’s high population density and transaction volume should “allow for accelerated brand awareness.”
“Purplebricks has broken down barriers in an industry that has always been resistant to change. We offer buyers and sellers an easy and convenient way to do business and save thousands of dollars at the same time,” said Eric Eckardt, CEO of Purplebricks USA “With Purplebricks, these sellers and buyers can enjoy the process and price changes they have been asking for. We are excited about our planned entry into the New York DMA, which is the largest in the United States with over seven million households.
According to the company, Purplebricks can charge less than other real estate agencies because it offers a technology-driven sales experience.
Sellers are assigned a dedicated ‘local property expert’ who provides advice and full service through to closing. Additionally, local real estate experts provide comparative marketing analysis to determine the sale price, arrange photography and digital marketing, and arrange a 3D virtual tour.
Sellers can also use Purplebricks’ “easy to use online platform which offers an unrivaled level of control and transparency over the entire selling 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 American 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,” said Michael Bruce, founder and CEO of Purplebricks Group. , said.
“With above average commission rates and trading volumes, New York was the natural first step to the East Coast for Purplebricks. Our local team has a deep understanding of the US market and considerable experience in New York in particular,” added Bruce. “While early on, we are encouraged by the exceptional quality of LREEs 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 business grows.”