The real estate business has largely been conducted in the same fashion for years. People generally believe that the industry’s age-old model is simply the way things have to be, as it has worked so well for so long.
One searches for and decides on a real estate agent, pays that person a fee for their services, and moves on. That fee has always been variable based on the price of one’s home, the amount of time it is on the market, and a few other factors. For those listing expensive homes, this can become extremely pricey.
Purplebricks, a real estate company in the United Kingdom, decided that they wanted to do things differently for their customers. Instead of charging a variable commission, they were going to base their model on a flat rate system. In other words, they charge $3,200 per house listing no matter the price of the home. Since the typical fee is about two and a half percent of the value of the home, this rate can be significantly lower than what other real estate companies would charge to sell the exact same house.
The company says that it does just as much work for its clients as any other real estate agency would. Therefore, one should not allow the more affordable price tag scare them away — Purplebricks is still going to work just as hard as their competitors.
Furthermore, the company also offers 3D, virtual tours of their various listings for those who enjoy house shopping online. They also do the same kind of professional photography and showings that any other real estate company would do. Therefore, the only difference between Purplebricks and any other agency is the price clients pay.
The company operates not just in the UK but in the United States and elsewhere as well. To illustrate their point about how much their clients can save, they point out that the median listing price in San Diego is over $500,000. If one chose to sell that home through them, they could literally save themselves more than $10,000 in listing fees. Why pay that much more when they are literally getting the same kind and caliber of service?
This is an alternative company that could be lighting the way towards how the industry will operate in the future. People definitely like the feel of this company and the way that they do business, which might just be enough to convince a large segment of society that this is a better way to do real estate.