PurpleBricks has a flat-rate fee of $3,600. That could potentially save you thousands of dollars in closing costs. One of their Local Property Experts examines your property, determines a value, lists it, and then you pay the fee upon the successful sale of your home. It's a great alternative to a traditional real estate agent. However, it's only available in a select number of cities.
Purplebricks allows sellers to list their homes via a combination of automated online tools and in-house agents for a flat fee. In only three years, according to their website, Purplebricks has managed to become the #1 real estate brokerage in the UK, and it's also become the fastest growing brand in Australia since launching there in 2016. Competitive pricing is often cited as one of the primary reasons that sellers use Purplebricks, but low prices don't always guarantee a great value.
Is it valuable? That depends on what you're looking for.
How Does Purplebricks Work?
If you're looking to sell your home using Purplebricks, the process starts with a property appraisal. One of their “Local Property Experts” (essentially remote real estate agents) will examine your property and attempt to determine its value.
From there, you – the seller – will decide if you want to sign a contract with Purplebricks. If you do, the Local Property Expert will create an advertisement and list your home for you.
If you're a seller, you'll pay Purplebricks upon successful sale of your home. That actually leads us to one of the best things about Purplebricks...
Pros of Purplebricks
Purplebricks boasts a flat $3,600 fee. This is significantly lower than most agents' commission.
If you're selling your home for $310k, the typical listing agent will charge a commission of 3%. In this case, that's about $9,300. By working with a flat-fee agent, you could potentially save thousands of dollars.
How can they save their clients so much money? Purplebricks has in-house marketing and advertising services for their agents. That reduces the out-of-pocket costs for a lot of agents. It's hard for an agent to make money if he has to waste his valuable time searching for new clients.
Also, by working mostly digitally, they eliminate the need for traditional offices. It, of course, costs a lot of money to maintain a physical office space. When you work with “Local Property Experts” (who, again, work a lot like remote real estate agents), you eliminate those costs, as well.
That does, however, lead to one of the biggest problems with Purplebricks.
Cons of Purplebricks
Unfortunately, Purplebricks only has agents in six cities across the entire United States. That doesn't mean that Purplebricks is inaccessible in your area, though. You'll have to check out the website.
Just don't be too discouraged if you see something saying, “Out of Area. We're having trouble finding the price for your zip code.”
Purplebricks might offer a great service, but if it isn't available in your area, there isn't much you can do.
Clever vs. Purplebricks
While Purplebricks' growth is impressive, if you live in the U.S., it might not be available in your area. Clever is available across the entire U.S.
If you're looking to buy or sell a home, the best thing you can do is talk to an experienced real estate agent in your area. You might not know much about real estate, but they do. They'll answer all your questions and guide you along in the process.
Also, unlike Purplebricks' $3,600 fee, Clever charges a flat-rate fee of $3,000 for homes under $350,000 and 1% for homes over that price. Instead of paying a traditional real estate agent all of your commission, if you buy with us, we can even offer a home buyer's rebate program in participating states.
Kind of like Purplebricks' “Local Property Experts,” Clever sets you up with a top local real estate agent to take professional photos and list your house on MLS. You'll always have someone who's looking out for your best interest, ready to answer any questions you might have.