Purplebricks will charge a flat fee of $4500 – including marketing costs – to homeowners which can save thousands on real estate agent fees but also allow sellers access to a bespoke online platform to track the sale of their home, ask questions of potential buyers, respond to queries and receive offers the moment they are made.
Purplebricks CEO Michael Bruce told AFR says Australia’s love of real estate, but dislike of the way traditional estate agents operate, will fuel the success of his company.
“Australians are infatuated with real estate,” he said. “For us, it’s great because it means they will embrace our model as they have done in the UK.
“We grew to 300 local property experts in the UK in less than two years; it could be a lot quicker in Australia.”
Bruce said he was confident of mimicking the rapid success achieved in Britain, where London-listed Purplebricks has grown to be the third-largest estate agency in less than two years and has successfully floated with a market value of £300 million ($520m) – three times bigger than ASX-listed McGrath.
Purplebricks will launch in Melbourne and south-east Queensland on Monday with 50 “local property experts” and a $17.2 million marketing budget to spread the word among home sellers.