Purplebricks lays foundations for US launch
The company will first set up shop in Los Angeles before extending across California.
Online estate agent Purplebricks is to launch in the US as it looks to tempt Americans to desert traditional high street firms and tap a 70 billion US dollars (£52 billion) market.
The company will first set up shop in Los Angeles before extending across California, with other states also on the hit list.
Boss Michael Bruce said the move represents the “single biggest moment in the company’s three-year history”.
“We are excited about the opportunity, in this 70 billion US dollars market, while mindful of the challenges.
“We have planned accordingly, adapting both our technology platform and customer proposition, while building out an infrastructure and local team, with decades of experience,” he said.
Purplebricks described California as the “natural launching point”, with an estimated commission income of 12 billion US dollars (£9 billion) per year, more than double that of the UK.
The firm claims that, using the average LA house price of 560,000 US dollars, Purplebricks could save sellers as much as 16,400 US dollars – based on a seller’s commission of 6% and assuming a Purplebricks’ buyers commission of 2.5%.
Similar to the UK and Australia, where Purplebricks currently operates, buyers will be able to arrange showings, submit offers in real time and negotiate sales on properties with the click of a button.
In June, the firm posted a 151% increase in revenue to £46.7 million in the year to April after it sold and completed on more than £5.8 billion worth of UK property on its platform.
This meant that full year losses halved from £11.9 million to £6 million.