EYE NEWSFLASH: Purplebricks is launching in America today

Purplebricks is formally launching in the US later today, it announced to the London Stock Exchange this morning.

In line with the region by region roll-out in the UK and Australia, the US launch will start in Los Angeles before extending across California and other key States.

In this morning’s statement, the firm said: “As the 6th largest economy in the world by GDP and the leading US state in terms of both number of annual real estate transactions (442,320, source: California Association of Realtors®) and an estimated commission income of $12bn p.a, California is the natural launching point for US expansion.

“Although California, at 12.6m households has less than half the UK equivalent, the level of commission income in California is more than double that of the UK.

“The diversity and density of the Los Angeles population and broad spread of low to high price properties, will enable us to demonstrate the high quality of service across all demographics and the potential savings that customers can achieve.

“The Purplebricks technology platform and customer offering has undergone a transformation to meet the intricacies of the US market, while staying true to the core customer proposition of value for money and high quality customer service.

“This is delivered through a combination of Local Real Estate Experts (LREEs) and technology.”

The statement acknowledges that the US market is very different from that of the UK, with the use of separate listing and buying agents – although listing agents may also act as buying agents by introducing buyers to their own listings.

It says: “Purplebricks will charge sellers a flat fee of US$3,200 to list their property.

“Sellers will also be responsible for paying a buyer fee on closing. By way of example, using the average LA house price of $560,000, Purplebricks could save sellers as much as $16,400, based on a seller’s commission of 6% and assuming a Purplebricks’ buyers commission of 2.5%. There will also be an option for sellers to defer payment of the listing fee.

“A key attraction of the US market for Purplebricks and a substantial opportunity is the potential to earn buyers commission immediately. From today buyers will be able to go onto the www.purplebricks.com website and view all of the properties for sale in the LA market with all agents on the MLS [multi listing system].

“Buyers will be able to access these properties through our leading technology platform and best in class search functionality, which operates 24/7. Similar to the UK and Australia, buyers will be able to arrange showings, submit offers in real time and negotiate sales on our properties with the click of a button, communicate directly between buyers, buyers’ agents and sellers and, in essence, make deals happen faster.

“For the first time with Purplebricks, buyers will be able to tour properties from the comfort of their living room using 3D virtual reality, through leading provider Matterport.”

Purplebricks says that should this prove successful, Matterport will be used in the UK and Australia.

This morning’s long statement to the stock exchange ends with Purplebricks CEO Michael Bruce saying: “Launching Purplebricks today in the US is the single biggest moment in the company’s three-year history and a proud moment for me personally. It is testament to the quality and dedication of the team that we have achieved this ahead of schedule and expectations.

“We are excited about the opportunity, in this $70bn market, while mindful of the challenges.”

Purplebricks is now in three continents in the space of just over three years.

Bruce said: “We are confident that we are leading irreversible change in the industry and that we are best placed to realise the future global opportunity.”

Two ‘Real Misery’ TV adverts will go out later today, to start wooing the American audience. And they’re very funny.

 

 

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46 Comments

  1. Chris Wood

    BREAKING! First pictures: https://media.giphy.com/media/X7wHXeL7qjsQg/giphy.gif

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    1. P-Daddy

      Wow… this I’m sure will put them in an immediate conflict with the realtors! All they need to do is hoover up existing listings by what looks like screen grabbing or equivalent the MLS…not all with pictures and if they get buyers to find their site, they can cream off a 2.5% buyers commission. Simples!! Rest assured those agents won’t take that lying down quietly, watch the sparks fly! It did when Foxtons tried the same in New York, although the internet wasn’t as well developed then. If their MLS has nearly 100% listing market coverage, or even if it doesn’t, by keeping up the TV and radio advertising to get brand identity fast, they will make a big dent. They will need to wear their bullet proof suits in the city of drive by’s! The homepage for LA has their top LREE, her name is Wendy Monnig and she has sold 100 houses in 11 years! Be grateful that only certain parts of London have an equivalent of an MLS.

       

      “A key attraction of the US market for Purplebricks and a substantial opportunity is the potential to earn buyers commission immediately. From today buyers will be able to go onto the www.purplebricks.com website and view all of the properties for sale in the LA market with all agents on the MLS [multi listing system].

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  2. PeeBee

    No 5h!t, Sherlock announcement of the day:

    Their @trustpilot page is up and running.

    https://uk.trustpilot.com/review/www.purplebricks.us

    Expect there to be twenty 5-star ‘reviews’ by midnight…

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    1. KemptownAgent

      “PurpleBricks Havn’t yet sold my house, but the service so far is 5*”

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    2. Mark Walker

      Says 5* Trustpilot on the top of the front page on launch day, PeeBee, so it must be true.

      Further down they have multiple 5* reviews showing.  Doesn’t explicitly say that they’re not necessarily US Purplebricks reviews…  (or, let’s face it, even genuine)

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      1. PeeBee

        Well… it’s coming up to 0530 in LA – so maybe the first ‘experiences’ are being had by US citizens and that first 5-star review is already being posted.

        Watch this space…

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        1. PeeBee

          **UPDATE**

          Looks like the first US review has been posted JUST BEFORE 0500 (Pacific Daylight Time), it seems.

          Just on the wrong site – it’s gone onto the UK page:

          https://uk.trustpilot.com/users/5618ec810000ff0001e1f994

          Funny, that…

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          1. PeeBee

            …and here’s the SECOND:

            https://uk.trustpilot.com/users/59bbc52a0000ff000ac99143

            Again, unfortunately, posted on the British page and not that of PurpleBricks US – which is apparently where the review emanates from.

            Funny, that…

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  3. htsnom79

    LOL, classic, I’m gonna stream me some L&H this weekend, maybe before the  GGG fight 🙂

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  4. PeeBee

    “Launching Purplebricks today in the US is the single biggest moment in the company’s three-year history…”

    Speaks volumes for all those other insignificant moments in the past three years that have been funded by the British public and investors alike…

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  5. David B

    upfront or deferred Listing fee of £2,380 payable whether the property sells or not?

    looks like PB have nearly tripled their fee?

    is this listing fee in USA historically no sale, no fee?

    If so, the difference in American market is that many people have guns!

     

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    1. KemptownAgent

      Are we expecting an increase in Gun related arrests?

      We can only but hope the Americans see past paying £2380 for in essence absolutely nothing whatsoever…

       

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    2. Mark Walker

      I’ve currently got a quote of $3,200 for my new fictional client of my fictional Californian address, plus:
      Buy Side Fee:
      In addition to the Sell Side Fee referred to in the basket above, you will also pay a Buy Side Fee at closing which enables co-operation and listing on the Multiple Listings Service (“MLS”). The terms are contained in the Service Agreement (which can be viewed on the next screen) and the buy side is usually between 2-3%. Your Local Real Estate Expert will have confirmed the Buy Side Fee to you at the listing appointment should it have already taken place. If the listing appointment has yet to take place because you have appointed us as your Broker in advance, full details of the appropriate Buy Side Fee that will charged and displayed in the MLS will be provided by the Local Real Estate Expert at the meeting.
      Now going through the longest set of t&c’s I have ever seen, including some things that are obviously foreign to me:
      We receive listings from multiple sources including MLSs. Information from these sources is deemed reliable but is not guaranteed. By using the Services, you agree to abide by the terms and conditions set forth by each provider, as indicated in the disclaimer below each listing and within our MLS Disclosures. Further, you agree not to copy, scrape, harvest, resell, or in any way use the MLS-provided content shown on the Services for any purpose other than conducting property searches for your own personal, non-commercial use, and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. If you are an authorized MLS participant or MLS representative, you are authorized to access the Services to verify compliance with the applicable MLS rules, as specified in the MLS rules

      Eligible buyers who Purplebricks represents in the purchase of a home may in the absolute discretion of Purplebricks become entitled to a Buyers Rebate payable upon Closing. You agree that Purplebricks may, if they so wish from time to time, pay the Buyers Rebate to a buyer who Purplebricks represents including any buyer on a Dual Agency basis.
      To be eligible for the Buyers Rebate, a buyer must not be represented by another licensed real estate professional and must execute a buyer representation agreement with Purplebricks on terms and conditions agreed from time to time with the buyer.
      The buyer, when eligible and offered, has a choice as to whether to claim the Buyers Rebate, unless prohibited by law. Any buyer wishing to claim the Buyers Rebate is required to disclose the nature and the existence of the Buyers Rebate to all parties involved in the transaction, including: the seller, all real estate brokers and agents, any lenders and any other parties to the transaction.
      Where there is a transaction involving a lender, payment of the Buyers Rebate shall only be made if agreed to by the lender and in the form required by the lender.
      Purplebricks buyer representation is currently offered in the State of California.

      I love how short the advertising & marketing paragraph is, compared to everything else, in the T&Cs:

      Purplebricks will use reasonable effort and due diligence to achieve a sale of the Property;
      We will, at our absolute discretion, advertise and market Your property for the Listing Period on such property portals, MLS’s, websites or publications as we consider to be the most effective at securing interest in the Property;

       

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  6. IndAgent

    If you run before you can walk, you’re more likely to fall over.

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  7. cyberduck46

    Good luck to them. I can’t see it working out but you’ve got to admire them for trying.

     

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    1. Chris Wood

      Nor can anyone else but, hey, it’s other peoples money so who cares eh?

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      1. cyberduck46

        Chris,

         

        I think you’ll find that investors are behind the move. If I’m not mistaken there was a vote when they raised the £50M to expand into the U.S.

         

        Presumably you are aware of all the warnings given when people open share trading accounts and subscribe to shares in public offerings? Mind you some of your comments suggest to me that you aren’t aware of much when it comes to investing in shares. Particularly when you talk about PB’s failure to pay a dividend. That one really gives the game away. 🙂

         

         

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        1. Chris Wood

          I am well aware of all the warnings that could and should be given. However, given that PB PLC made a busienss case that has since been shown to have been based on misleading (ASA) and out-of-date figures and, that all of their LPEs’ were, at the time, qualified (they weren’t), those warnings are only good if they are given with full disclosure. As for dividends, I seem to recall a non-partisan analyst stating that PB PLC would have made £5M profit at the end of this the last financial year so dividends should/ could have been paid albeit modest ones.

          I don’t dabble in stocks it’s true (though I think I hold about twelve in Santander from an inheritance) my forte is in estate agency and agency compliance, something does not appear to be Purplebricks strong point at all.

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        2. Robert May

          So when Mr Bruce promised to deliver HUGE (operational) profits everyone should have known there wasn’t going to be a dividend?

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  8. Hillofwad71

    Anyone clarify?

     
    “A key attraction of the US market for Purplebricks and a substantial opportunity is the potential to earn buyers commission immediately. From today buyers will be able to go onto the www.purplebricks.com website and view all of the properties for sale in the LA market with all agents on the MLS [multi listing system].”

    How would a buyers agent get a commission if the  buyer independently  goes on the site direct?

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    1. cyberduck46

      I’m guessing what they are saying is that all properties listed in LA can be seen on the PB website. if somebody buys via the PB website then PB/LPE get the buying agent’s commission. This is for every property listed by every agent in LA.

       

      Could be wrong. Just guessing.

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      1. AgencyInsider

        I get it. The PB LPREE in LA USA does 3D on the MLS. But not for FA.

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  9. PeeWee

    Brace yourself America.  A category 2 storm follows Irma.

    Some words may have been edited just for fun;

     

     
    Extremely dangerous hot air and tosh spouting will cause extensive damage
    Storms of Category 2 intensity often damage the troofing material and (sometimes expose the troof).
    Can inflict damage upon poorly constructed offices and reputations. Poorly constructed business plans, signs and piers can receive considerable damage and many trees and share prices are uprooted or blown away.  Mobile LPE’s, whether anchored or not, typically run amok damaging and sometimes destroying home movers sanity as well as weekends.  Your chances of completing may also suffer structural damage.
    Small minds in unprotected anchorages may break their moorings. Extensive to near-total disappointment and power outages with scattered loss of potable water are likely, possibly lasting many days, leaving the public and industry in the dark with extensive reconstruction and picking up of pieces left in this storms wake.

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  10. GPL

    HooooooHaaaaaaah!

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  11. GPL

    Episode 1

    Rachel, Joey, Monica & Chandler decide they’re going to sell their apartment….

    What happens next?

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  12. dompritch134

    Great news PB launching into this potentially hugely profitable market.

    Looks like the introduction of 3D modelling to be included within the UK market as well, they really are driving the industry forward and out of the dark ages.

    Great work PB

     

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    1. Property Pundit

      HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!! Post of the week there Dom!

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    2. Robert May

      I think it is wonderful that they have launched into an aggressively litigious country given their penchant for exaggerated  claim and promise.

      The profits will be HUGE blah blah, £17m in 15, £24.9m in 16, 10% of all transactions blah, 88% blah blah, experts blah blah local blah blah blah

      Yeah yeah yeah.

       

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      1. Chris Wood

        You missed out the words ‘serially misleading’

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    3. AgentV

      dompritch134 ……Looks like the introduction of 3D modelling to be included within the UK market as well, they really are driving the industry forward and out of the dark ages.

      Hmmmmm…….you mean exactly like the system Chris Wood has been using for months and many realtors already use?

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  13. Marc Cottrell

    #RealMisery – the feeling hundreds of consumers have suffered trying to use Purplebricks to sell their homes.

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  14. AgencyInsider

    Prediction: Purplebricks will withdraw from America within three years.

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    1. KemptownAgent

      I find it interesting that the Brothers had sold millions of their shares….yet PB still seems to be pushing forward. In most cases of Flip & Dump businesses after the owners dump their shares the business spirals quickly downwards…very difficult one to grasp whats going on with

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  15. David B

    Put simply:

    PB not making money in UK as average fee is 1%

    so head to Oz where average fee is 3% …still not making any money

    so head to USA where average fee is 6%

     

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  16. GPL

    Here’s a thought on that PB story…..

    I’m parked up having just popped a SOLD onto 1 of my For Sale Boards… I know, it’s old fashioned doing it myself however, there you go.

    Anyway…. sipping from my MS Pink Lady Apple Juice Plastic Bottle, I note the following….

    “We’ve pressed 3 Pink Lady Apples per bottle”

    I’m feeling healthier already.

    Now, on PB & America, LA in particular, really, we’re swigging LA already….. not Los Angeles?

    I just can’t stop thinking about PB & “Would you like fries with that?”…seriously tho ….if they can extract that amount of money from a US Seller without the use of a “firearm” shaped device, then I will genuinely step back and ask the world to stop spinning.

    Even that Legend of The Entertainment World Sir Brucie couldn’t crack America/The US/LA, whatever we are going to call it.

    Now, where is my Pink Lady?

     

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  17. GPL

    It’s a Sweetcorn Chowder Soup break now, in my car…..

    Just looking at PB Shareprice…..

    Was thinking…. say I had 3,900,000 Shares….

    Yesterday at £3.90, £15,210,000

    Today at £4.10, £15,990,000

    £780,000 profit….. amazing!

    Just imagine?

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  18. PeeBee

    **BREAKING NEWS**

    Purplebricks now have THIRTY SEVEN reviews on their US @Trustpilot site:

    https://uk.trustpilot.com/review/www.purplebricks.com

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    1. Beam Splitter

      Of which the first one I’ve looked at refers to a British LPE operating in Cambridgeshire being review by someone in the US….odd…

      https://uk.trustpilot.com/reviews/59bbd74c31302a03bc89ecb3

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      1. AgentV

        Purplebricks now have THIRTY SEVEN reviews on their US @Trustpilot site:

         

        Clearly us British are already showing the Americans how its done!!!!!

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        1. AgentV

          45 now. They are going great guns…. have they got any properties to sell yet?

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          1. AgentV

            54 now…..alll pretty much 4 and 5 star reviews (apart from the two protesters). How do all these people know how good they might be when they haven’t even properly started?

            Have they got any properties for sale yet?

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          2. PeeBee

            …and then there were 54.

            39 of them are 5-star – pretty much double my prediction with 45 minutes to go to midnight.

            Does that mean I win?  Or do I lose for being so far out?

            Answers, on a postcard, please…

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            1. AgentV

              SNAP!!!

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  19. Ashfordagent

    I’ve been over here 3 months doing real estate as they call it and its not easy. So far not one buyer or seller to work with so PB will not work here with their model. Agents will steer clear of showing clients their listings and show them properties with higher fees. Its how it works.

    On another note, anyone want to buy a holiday home in Orlando!  🙂

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    1. AgentV

      Ashfordagent……be good to talk… in@agentV.co.uk

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  20. GPL

    PeeBee…

    I share this super sensitive secret recording obtained earlier today….. (ASS – Attorney Sphincter & Sphincter) (BA – Mr Bloomingangry)

     

    BA – “Hey”

    ASS – “Mr Bloominangry”

    BA – “Yup”

    ASS – “Is this a secure line”

    BA – “Yup”

    ASS – “Okay, this is O J Sphincter of Sphincter & Sphinter Attornies, it’s about your Class Action Claim against PIMPLEFARTS ”

    BA – “Swell”

    ASS – “I just wanted to confirm we are already compiling questionable review evidence in connection with PIMPLEFARTS”

    BA – “Swell”

    ASS – “We anticipate being able to register a Billion Dollar claim against PIMPLEFARTS based on their questionable reviews which so far seem to orginate from PIMPLEFARTS own PIMPLEFARTS HQ”

    BA – “That’s real Swell!”

     

    ……… more to follow PeeBee

     

     

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