Purplebricks has been shaking up the industry with low fees, but the real estate agency disrupter has announced a new service offering as it ups its price to $8800 from this October.
The real estate agency announced its new all-inclusive fee this week, but customers will only pay half, $4400, on listing the property with Purplebricks, while the remainder of the fee is payable upon settlement of the property.
Purplebricks Global COO Neil Tavender said the move was a natural evolution for the business.
“For customers, our new offering reduces exposure when a home isn’t sold whilst still offering a flat fee that side-steps large commissions only in place to benefit traditional agents, not sellers," Tavender said.
“We save Australians thousands when they sell their home with Purplebricks.”
The move comes as Purplebricks revealed in July it had incurred a $21.2 million loss in Australia.
“Make no mistake, Purplebricks is committed to the Australian market and it forms a significant part of our expansion and capital expenditure plans in the years ahead,” Tavender said.
The UK company’s expansion into international markets, has seen the agency establish its business in the United States last year and Canada earlier this year.
As part of the increased changes, Purplebricks agents will have the opportunity to more than double their income per listing, receiving an additional payment on the successful closure of the sale of the home.
Under the former business model it is understood agents earn just over $1000 per listing before expenses.
“This new and progressive service offering increases compensation for our agents whilst ensuring that our customers receive more extensive advertising exposure and an increased level of service,” Tavender said.
Purplebricks has sold more than 4000 homes and saved sellers more than $49 million in "traditional" real estate fees since entering the Australian market in August 2016.
The company said it will honour terms and conditions in all existing contracts.
The offering will be in implemented from 1 October.
