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What is the revenue model of Purplebricks?

Purplebricks has a unique business model that sets it apart from traditional estate agents with physical offices on the high street. In essence, Purplebricks is an innovative online platform that efficiently promotes properties to potential buyers, utilizing a streamlined approach that differs from that of a conventional estate agent. Unlike its main online competitors, such as Yopa, House Simple, and Doorsteps, this means that it can charge lower amounts of money than most operators in the UK’s housing market have traditionally charged.

Actually, Purplebricks’ unique fee structure, which does not rely on a percentage of the sales price, allows for a profitable business model. It’s great to know that there is no initial fee charged when a home is marketed by a bricks and mortar estate agent. It’s great to know that most estate agents only charge their brokerage fee once a deal is successfully closed. The good news is that estate agents typically don’t charge any fees unless they successfully sell your property, even though their rates may differ from company to company. It’s great to know that the conveyancing solicitor handling the sale for the vendor usually settles the fee and any legal fees before processing the rest of the sale and allocating the remaining funds appropriately.

Purplebricks operates on a different commercial model. Let’s explore how it generates income from its marketing activities.

Clear and predictable pricing.

Purplebricks charges upfront fees to sellers before their home is sold, which means you can get the process started right away without worrying about additional fees later on. This means that sellers have the opportunity to be well-informed about what they are paying for. Since estate agents charge a proportion of the sales price, it means that if a higher price is achieved during the sale, their fee will increase, which is great news! Fortunately, with Purplebricks, you can pay an upfront fee that remains consistent regardless of the asking price of your home. A flat-fee model is a great option for people who own larger, more expensive properties, as they can enjoy charges that are often more favorable compared to the percentage fees charged by competitors.

Thanks to its unique model, Purplebricks can generate income even if a house sale falls through. The flat-rate model is attractive because it will often mean paying more affordably. Although the fees are due upfront, there is always a chance that the property will sell quickly, resulting in a successful transaction with Purplebricks. Fortunately, Purplebricks offers sellers the option to defer their upfront fee by utilizing their conveyancing service.

Purplebricks charges a reasonable fee for their services.

Purplebricks offers a great marketing service for only £899 to help sell your property. There may be more to the story than just the flat fee. Living in London and some surrounding areas may require a slightly higher payment. Great news! You can find properties in or near the capital for just £1,399. It’s great to know that Purplebricks offers a lifetime fee that won’t result in any additional charges even if the house doesn’t sell right away. With Purplebricks, you have the flexibility to leave your property on the market for as long as you need to. If your personal circumstances change, you can easily take it off the market and put it back on at a later date.

It’s great that Purplebricks offers valuations for free, and it’s worth noting that many other estate agents also provide this service at no cost. When placing your home on the market with Purplebricks, keep in mind that there may be some additional fees that could apply. However, these fees are manageable and won’t detract from the benefits of using Purplebricks to sell your home. Great news! Purplebricks can arrange for an energy performance certificate (EPC) to be produced for you at a reasonable charge of £84. Moreover, if you choose to invest an additional £125, your home can be listed on Rightmove with a premium listing. It’s great to know that Purplebricks offers the option to have your property featured on Rightmove for just an additional fee of £149.

Fortunately, Purplebricks offers a variety of packages that can be customized to meet your specific needs, including the option to add accompanied viewings. By paying an agent £300 to show potential buyers around your home, you can save yourself time and effort. If you are eligible for the London weighting charging rate, then the fee for accompanied viewings increases to £399.

What amazing value can you expect for your investment?

By signing up for the Purplebricks service, you can enjoy the benefits of having your home listed on popular sites like Rightmove, Zoopla, PrimeLocation, and more, with stunning, professionally taken marketing photos. Exciting news! A floorplan will be created and paired with sales notes and a strong social media marketing strategy. You can expect a dedicated local manager who will take care of your account, arrange viewings, and handle offer negotiations. Great news! You can expect a ‘For Sale’ sign, which is a feature that not all online estate agents offer.

For more news click prenews.co.uk

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