SAN DIEGO—More-efficient and streamlined services as well as the explosive use of mobile devices for everything from search to completing transactions have taken hold of the residential financing sector, Purplebricks' US CEO Eric Eckardt tells GlobeSt.com. As we recently reported, billing itself as “the next generation real estate agency,” the firm launched in Los Angeles and Orange County in September 2017; it has now expanded to three new California markets: Fresno, Sacramento and San Diego.

With Purplebricks, sellers can list their home for a flat seller fee of $3,200. This, according to the company, enables them to save thousands of dollars in standard commission fees, which average 5% to 6% in the US. That amount is typically split in half between the seller and buyer agent commissions.

We spoke with Eckardt about how the Purplebricks platform works and other trends he is noticing in home selling.

GlobeSt.com: Please explain in a nutshell how the Purplebricks platform works.

Eckardt: Purplebricks offers a compelling and viable alternative to the traditional US brokerage model for the following reasons:

Sellers are looking for unparalleled transparency, customer service and value.
Buyers are seeking greater transactional flexibility, speed and control.
Professional real estate agents want to spend their time helping people buy and sell homes rather than prospecting for leads.

For a $3,200 flat seller fee and standard buyer's commission, sellers can list their home with Purplebricks, which enables them to save thousands of dollars compared to what they would normally pay in standard commission fees, which average ~6% in the US. Our innovative online platform provides sellers with 24/7 control over the entire sales process, from approving listing particulars, arranging viewings and soliciting expert advice to observing unfiltered buyer feedback, receiving offers, negotiating and agreeing a sale—all at the click of a button.

On the buy side, buyers are able to leverage our agents and our innovative online platform to view all available market listings, access information and advice 24/7, request multiple showings and submit offers in real-time via the Purplebricks website. Importantly, our unique technology and approach to transacting provides buyers with the opportunity to secure their dream home on their time, day or night, by not having to wait to assign an agent and schedule a showing to make an offer. We also contribute $1,000 to the buyer as a rebate towards closing costs, if they select us as their buying agent.

Purplebricks also provides talented professional real estate brokers an opportunity to earn more and work more effectively, benefiting from the combination of territory exclusivity, lead generation from “always-on” broadcast and digital-led marketing and an extremely efficient web and mobile technology platform that frees them up to spend more time with buyers and sellers.

We have already saved families millions across the UK and Australia and launched a little over four months ago in Los Angeles, which is the start of our national expansion. We have since branched out to Fresno, Sacramento and San Diego and are looking forward to segueing into other US cities.

GlobeSt.com: Why is now the right time for this platform to debut?

Eckardt: We have observed the change in consumer behavior and their desire to access information more readily. Nearly 100% of homebuyers are searching online in the residential sector. Consumers are also seeking a viable alternative to the traditional brokerage model that will allow them to save thousands in commission expense while still realizing and benefitting from great service.

GlobeSt.com: What other trends are you noticing in home selling to make the process better for sellers and buyers?

Eckardt: We are seeing several trends today that include more-efficient and streamlined services and the explosive use of mobile devices—for search, the delivery of a more immersive and informative real estate experience and completing transactions—in a transparent and efficient way. The access to a wealth of information has created an ever-more empowered consumer. Incumbents are feeling the pressure on the traditional real estate commission model.

GlobeSt.com: What else should our readers know about your platform?

Eckardt: Buyers can schedule showings and submit offers at a time that suits them, 24/7. They can also search all active residential inventory on the market since Purplebricks has timely and accurate data through direct data feeds with their MLS, as a licensed real estate broker in our respective US markets.

The success of our platform is driven by its simplicity and efficiency, in all aspects of the process, from search to closing, and importantly our local real estate experts at the center of each transaction, who are just that—expert realtors in their respective markets.

Instant Insights /

Tech Trends in Home Selling

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