Our approach to business is based on several elements – some are cultural, like having the right people, values and behaviours in Purplebricks, and some are operational, making sure our infrastructure and technology enable us to continuously scale and improve. Some are around our proposition and the unique blend of people and technology that create inspirational experiences for our customers.
All of these elements need to work together at pace to drive high growth through innovation in products and services, technology, marketing and content. Our continual velocity is intrinsic to the way we operate, as is our commitment to delivering a more convenient, transparent and cost-effective service for sellers, buyers, landlords and tenants.
In summary, our strategy is to build on our market-leading proposition and increase our share of the estate agency markets where we operates, for both sales and lettings.
The following pillars of the Purplebricks offering are key to the achievement of our strategic objectives:
Purplebricks has a reputation for delivering a good quality service for its customers. By combining the power of people and technology and eliminating the unnecessary costs associated with outdated high street estate agency, we are able to offer customers an end-to-end full estate agency experience at a significantly reduced cost. Customers benefit from a dedicated Local Property Expert, a large 24/7 support team, the Concierge Team that will make sure they are getting a great service and plenty of marketing activity and a highly experienced Post Sales Support team that help customers with any issues whatsoever that arise from sale agreed through to moving home.
We believe that customers are not yet ready – and may never be ready – to hand over the sale of their property entirely to technology, and still value the advice and support of an experienced estate agent. The Purplebricks model has been developed with customers in mind. They want a dedicated person, not someone who they meet just once and never again. They want that person to have detailed knowledge of their respective area and market. They want someone who genuinely cares about them and the sale of their property and they want someone who is accessible and available. Purplebricks has experienced Local Property Experts (around 600 in the UK) who have contributed significantly to more than 60,000 positive reviews from customers – making Purplebricks the most positively reviewed UK estate agent.
We believe that traditional estate agents have been charging too much for too long. As a result of combining the power of people and technology and eliminating the unnecessary costs associated with outdated high street estate agency, our customers pay much less on average, without any compromise on service. We want to save everyone in each of our markets from the feeling of “commisery”, the misery you feel when you have paid too much in commission and got nothing more for your money.
Our technology and service enable interaction 24 hours a day. Customers can instantly know what is happening with their property, book valuations, arrange viewings, see feedback from viewings, offers can be made and sales can be agreed, customers can get performance reports and can contact Purplebricks 24 hours a day. We’re open when most other Estate Agents are asleep.
Purplebricks has spent over five years developing and building its technology and has a large team of developers who work on new features, maintenance, security and new launches to improve the customer experience. We want our technology to make the lives of our customers and our people much more convenient, instant, transparent and effective.
We have grown to be the most recognised estate agency brand in the UK according to the independent brand tracking research agency The Nursery, and in 2019 Purplebricks made its first appearance in the Superbrands Consumer Relevancy Index, as the 13th most relevant UK consumer brand. We have over 30% spontaneous brand awareness which is greater than the likes of Rightmove and Zoopla and as much as ten times more than any other competitor. Making an engaging, thought-provoking connection with prospective customers in a way that resonates and drives them to our platform is something that has been a key part of our success to date. To sum up our offering we coined, and trademarked, the term “commisery”and continue to invest heavily in that moment of realisation for consumers by creating highly effective and single minded, campaigns across a number of marketing channels.
We believe in continuous learning and understanding of our customer’s experience of our service. We seek and welcome feedback on every aspect of the business. Customer satisfaction and referral is critical to Purplebricks’ growth. We are proud to be the most positively reviewed estate agent in the UK by independent review site Trustpilot. We are rated “excellent” and have a score of 9.5 with more than 60,000 reviews from customers. We have recently extended the choice of review sites we recommend to include the highly regarded and respected Feefo. We are incredibly proud to have a Net Promoter Score (“NPS”) of +81 which is higher then brands like Amazon, Disney and Netflix. In addition to review sites, we have a culture of across-the-board internal feedback to learn and improve.
Purplebricks has a competitive and transparent, flat fee pricing structure of £899 inc. VAT for a sale anywhere in the UK other than certain defined London and surrounding area postcodes, where there the fee is £1,399 inc. VAT. There is an additional one-off charge if the customer wants Purplebricks to undertake the viewings on their behalf of £300 or £399 respectively. The Company also derives revenue from conveyancing, mortgage referrals, insurance and selling energy performance certificates, Home Reports (in Scotland) and premium listings on property portals.
The average revenue earned per instruction was £1,209 in H1 2019. Our customers can choose to pay upfront on instruction or defer payment until the earlier of, the sale of the property, withdrawal from the market or ten months from instruction. On referral, Purplebricks is reimbursed by a third party who is then responsible for collecting the money from the customer or their conveyancer when due. If a customer wishes to delay payment, they are required to use Purplebricks conveyancing services for the sale. In return for instructing Purplebricks the customer will get a full estate agency experience.
Purplebricks has a competitive and transparent flat fee pricing structure of $8,800 AUD inc. GST for a sale anywhere in Australia – an upfront marketing fee of $4,400 (inc GST), with the remaining $4,400 (inc GST) success fee due on settlement. In Western Australia, the respective fees are $2,200 and $6,600. Sales by auction are an additional $660 AUD incl. GST. Purplebricks also derives revenue from conveyancing and mortgage referrals.
Our customers can choose to defer their upfront marketing fee for six months on instruction. The service is provided by Duologi who are a UK-based personal finance lender. Duologi pay Purplebricks when a property is listed and collect the money from the customer when due. In return for instructing Purplebricks, the customer will get a full estate agency experience.
The US process of selling a property is different from the UK and Australia. The basic premise of the traditional process in the US is as follows: a customer appoints a listing agent and agrees to pay the listing agent a fee of around 6 percent, in return for which the listing agent will normally receive half and offer the other half to a buyer’s agent via what is called the Multiple Listings Service (“MLS”). When a property is placed on the MLS, every agent in the territory can introduce a buyer. In other words, everyone can sell each other’s listings. If the listing agent lists the home and sells it he or she keeps all of the commission. If the listing agent only lists it, he or she will keep the amount as agreed upon with the seller and the remaining amount will go to the buyer’s agent.
Purplebricks has a competitive, transparent, flat listing fee which is variable by location and paid only upon a successful sale. If the seller (or his/her agent) doesn’t offer a competitive fee to the buyer’s agent, he or she receive little to no attention on the MLS, which most customers tend to require. There is no additional one-off charge for viewings in the US because they are either undertaken by the listing agent, if they are showing the home to their buyer clients, or they are undertaken by a third-party agent if they are introducing their buyer clients. In essence, the opportunity in the US is to list and sell your own property stock and to also introduce buyers to other agent’s listings and receive half their commission. To incentivise buyers we give them a $1,000 rebate if they use Purplebricks to represent them in the purchase of their home.
Our customers only pay the fee on the successful sale (defined as “closing”) of their property. The flat listing fee due to Purplebricks will be paid during the disbursements of funds to all parties during “closing”. In return for instructing Purplebricks, the customer will get a full listing agency experience.
Purplebricks launched in the LA DMA of California in September 2017 and quickly expanded to other parts of California, the New York DMA, Arizona, Nevada and Florida in 2018. The Company derives revenue from their escrow and title business and will in due course expand to other ancillary products, with the commitment to delivering excellent services to all Purplebricks customers.
Our model in Canada works in two ways depending on province. In Quebec, sellers list their property on the DuProprio platform for a simple transparent fee ranging from C$700 to C$1,500 dependant on the sales package required. Elsewhere Purplebricks offers a brokerage model for a flat fee ranging from C$799 to C$4,000 depending on the level of services required.
In either case, our team of representatives, appraisers, real estate coaches and notaries support the customer through to their property being sold.