United Kingdom-based flat fee network Purplebricks has secured a $177m USD investment, funding its move into the New York market, with a launch planned for April 3.
The platform got its start in the United Kingdom in 2014 before moving into the Australian market in 2016. It began to work its way into the America six months ago, with a debut in California and plans to launch into New York.
Earlier this year Purplebricks Chief Marketing Officer Jonathan Adler relocated to California from the United Kingdom to cement the network’s push into this market. Mr Adler joined the brand in April 2017.
At the time, CEO Michael Bruce said of the move, “The sophisticated marketing program that Jonathan is directing is critical to our long-term success in the U.S. and abroad. It’s designed to drive brand awareness and affinity among consumers and provide our agents with visibility necessary to build a successful business in a highly competitive market.”
Now it’s been announced that the fixed fee model has moved forward its New York expansion date, from a previous date of the later half of 2018, to line up with a $177 million USD investment from German publisher Axel Springer, $71 million of which is dedicated to the American expansion.
“Since launching in the U.S in September 2017, we have achieved tremendous success and recognition in what we consider to be some of the most highly competitive residential real estate markets in the world,” said Purplebricks U.S CEO Eric Eckardt.
“Our platform has been well received in all four California markets, and we are excited by the promising opportunity we see in New York.”
U.S sellers on the platform will pay a flat fee of $3,200 USD, followed by buyers’ agent commission.
It comes off the back of multiple controversies for Purplebricks, including a fine earlier this year after the business was pulled up by the Office of Fair Trading Queensland for false and misleading conduct in advertising for fees. The company was forced to pay a $20,000 penalty.
Just a month prior the business was under fire for allegedly misrepresenting the number of properties it had actually sold in the United Kingdom.