Purplebricks is a UK-based real estate brokerage company that is currently disrupting the U.S. market. The company offers homeowners a flat fee ($3,200) to list their homes for sale which saves them thousands in agent commission fees. The standard commission fee is 5 to 6 percent; with Purplebricks, it’s 3 percent. (Note: The Purplebricks fee is not refunded if the home doesn’t sell.) The company’s American TV commercials feature homeowners who are mad that they spent too much money selling their homes. See video below.
Purplebricks launched in New York in April after making its American debut in California in December 2017. The company was able to do so after securing a $177 million equity investment from Axel Springer, the German publisher which also owns Business Insider. (Axel Springer bought BI in 2015 at a $442 million valuation.) In the deal, Purplebricks co-founders (and brothers) Michael Bruce and Kenny Bruce sold $44 million of shares to Axel Springer.
