Belfast Telegraph

Purplebricks confirms US expansion with launch in Las Vegas and Phoenix

The two cities will be able to list on the site from June 19.

Purplebricks is expanding (PURPLEBRICKS/PA)
Purplebricks is expanding (PURPLEBRICKS/PA)

Online estate agent Purplebricks is expanding its US footprint with plans to launch in Las Vegas and Phoenix next week.

Purplebricks said it chose the fast-growing cities for their “buoyant real estate markets”, noting average property prices of around 290,000 US dollars (£218,600).

The site will roll out in both locations on June 19, with users able to list homes for a 3,600 dollar (£2,714) fee, followed by a buyers’ agent commission on closing.

Purplebricks claims that a local homeowner selling for 261,000 US dollars (£196,777) would save around 4,230 US dollars (£3,188) compared with the standard estate brokerage commission of 5%-6%.

It comes nine months after the company first dipped its toe into the American real estate market, starting in Los Angeles last September.

That was followed by a rollout to San Diego, Sacramento, Fresno and New York.

The company has hired local estate agent Marcus Fleming as its regional director reporting to US boss Eric Eckardt.

Chief executive Michael Bruce said: “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.

“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 news sent Purplebricks Group shares up 2.4% in morning trading.

The estate agent earlier this year sold off an 11.5% stake in the business to German media publisher Axel Springer in exchange for a £125 million investment.

It included a £100 million subscription of new shares to help turbo-charge Purplebricks’ US expansion.

But the company also warned in March that its annual revenues would fall short of company forecasts following a financial hit from the Beast from the East.

It said the torrid weather conditions in late February and early March would shave around 5% off its group revenue predictions of £98 million.

Press Association