U.K. hybrid brokerage Purplebricks charges consumers a set fee to “instruct to sell” — for us Yanks, that means list a home with an agent. The company has expanded to Australia, and now it’s raising funds to bring its tech-based model to the U.S. in the second half of 2017.
- Purplebricks needs to consider how American customers will respond to its fee system, especially if it holds onto its "no refunds for no sale" policy.
- Agents will need clear explanations on payment, plus incentives to perform.
- Purplebricks needs to establish itself slowly to overcome the idiosyncrasies of U.S. real estate, especially fragmented MLS.