Flat-fee brokerage Purplebricks is set to launch in Las Vegas and Phoenix next week, expanding on its U.S. presence in California and the New York metropolitan area.
In April, the United Kingdom-based company expanded its U.S. operation to the New York region — New York City and surrounding counties in Connecticut, New Jersey, New York and Pennsylvania — and is now following that up with launches in Las Vegas and Phoenix. The launch in those two cities is scheduled for June 19.
“The Purplebricks model has continued to achieve great results on both coasts by providing excellent service and saving home sellers in California, Connecticut, New Jersey and New York thousands of dollars,” Purplebricks U.S. CEO Eric Eckardt said in a statement. “We see tremendous opportunity in Las Vegas and Phoenix, as both markets have ideal demographics comprised of consumers eager to buy and sell homes while saving money.”
The company charges a flat fee — recently raised from $ 3,200 to $ 3,600 in the United States — for homeowners to list their houses with a Purplebricks agent. Homeowners pay the fee up front, regardless of whether or not their home sells with the brokerage. In the United States — unlike in Purplebricks’ international markets — they also pay the buyer’s agent commission after a deal closes.
The company launched in the United Kingdom in 2012 and later expanded to Australia before starting its U.S. launch with California last year.
Marcus Fleming, an Arizona-based broker formerly with Redfin, has been tapped by Purplebricks to lead state operations for Arizona and Nevada.
In its stateside expansion so far, Purplebricks has focused on high-cost real estate markets in New York and California. In its expansion to Las Vegas and Phoenix, Purplebricks picks two lower-cost markets more popular with other real estate startups like Opendoor and Offerpad.
The Purplebricks model offers more savings to homeowners with higher-value homes, who save money on a percentage commission by turning to a flat-fee model.
“Las Vegas and Phoenix are similarly attractive markets, each experiencing a steady stream of growth from comparable clientele,” Fleming said in a statement. “In Las Vegas, the construction and hospitality industries continue to drive population growth, while Phoenix is seeing expansion through technology-based companies.”
