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A UK-based real estate group has launched in Australia this week, with a pledge to disrupt the “unfair”, “broken” and “high-cost” commission model favoured by agents.
One of the UK’s largest and most disruptive real estate groups is aiming to shake up the Australian market with its flat-fee model.
Purplebricks, the UK’s fourth-largest estate agency which commands a 60 per cent share of the online market, in July announced its intentions to come Down Under. One month later and it has launched in four Australian locations – Melbourne, Brisbane, the Gold Coast and the Sunshine Coast, with Sydney, Perth and Adelaide to follow shortly.
The group claims it will “disrupt and revolutionise the traditional real estate market” and “save Australian homeowners thousands of dollars”.
Purplebricks has announced a $4,500 flat fee for Melbourne and Brisbane – “a fraction of the high-cost commission-based fee structure of traditional real estate agents” – which they say will save home buyers “well over $11,500 on average in commission and marketing costs”.
Purplebricks said the fee includes professional photography, and marketing and advertising on realestate.com.au, domain.com.au and the Purplebricks website. For homes taken to auction, Purplebricks will charge an $825 top-up fee which includes an auctioneer, all viewings and management of the auction process.
The UK group has $17.2 million committed to the Australian arm of the business and will make “a serious investment in the launch to drive awareness and change the way Australians buy and sell property for the better”.
CEO and co-founder Michael Bruce said Purplebricks will disrupt the “unfair” system under which Australian agents currently operate, and he expects the agency will have a big impact.
“Australia was a natural next step for us,” Mr Bruce said, adding, “With such an obsession for property here and the traditional real estate model being the only way to sell a home, the time is right to offer sellers a fairer, more transparent and cost-effective way to replace unfair high-cost commissions.
“Quite simply, the commission model is broken. Australian home owners haven’t had a choice until now and have been paying too much for too long.
“We are shaking things up and will change the real estate landscape with our combination of local property experts and online accessibility, the incredible success we have had in the UK and trusted reviews. Sellers can be assured that their Purplebricks local property expert will get them the best possible price for their property.”
Australian CEO Ryan Dinsdale said the group is breaking new ground in price, and the nature and extent of the services offered.
“Like Purplebricks has achieved in the UK, our Australian business is committed to giving Australian sellers everything they have told us they want from the whole process,” Mr Dinsdale said.
Our service will be more convenient, transparent and cost effective in achieving the highest possible price for our customers. We are introducing a new and better way to sell a home.”
Purplebricks is actively recruiting local property experts and hope to lock in 300 post-launch.
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