Last year, flat-fee real estate agency Purplebricks expanded into the U.S. after building a successful business in the United Kingdom and Australia.
Purplebricks’ first foray into the U.S. was Los Angeles, a market selected because it “offers the ideal conditions for market testing,” and includes “concentrated population densities and a plethora of properties across all price ranges, thereby providing enormous upside to sellers, buyers and agents.”
The company recently expanded beyond Los Angeles to Fresno, Sacramento, and San Diego.
Now, the company is plotting the next phase of its U.S. expansion, and looking to the opposite coast.
Purplebricks announced earlier this week that it will be expanding to the New York area later this year, and plans to be active in New York by June 2018.
Purplebricks offers a flat listing fee, which it claims will set it apart in the competitive New York market. The company charges sellers a flat fee of $3,200 to list their home and a “highly competitive” buyers’ agent commission of 2.5% once the home sells.
According to Purplebricks, the New York designated market area, which includes more than 20 million people in select counties across New York, New Jersey and Connecticut, is “particularly well suited” for what the company has to offer.
The company claims that real estate commissions can reach as high as 7% in the New York area, and with an average home sales price of approximately $560,000, its flat fee model will save buyers thousands of dollars.