Yahoo Finance Purplebricks to sell homes for free in turnaround bid under new ownership
Estate agency Purplebricks will get a new lease of life as it launches a new – free – model, months after it came under new ownership.
The company says it will now allow customers to sell their homes without a fee, as part of a bid to “disrupt the housing market.”
This comes after Purplebricks was bought for £1 by Strike, the estate agency group backed by Freston Ventures.
It stopped trading on AIM in June of this year, and has looked to relaunch its operations to rebuild its reputation after a “brutally tough few years.”
Under a new operating model, and owner, it said customers can get what they need “without paying a penny.”
Potential sellers will be allowed to have a valuation, negotiation, listing and access to an app, without payment. They can also choose to pay a fee for more services.
Previously, Purplebricks charged a flat fee of £999 outside London and £1,499 inside London, plus optional extras. Additional paid-for services under the new structure include packages worth £899 and £1,499.
Earlier in the year, the company warned a return to profitability early next year was unlikely, as it looked to shore up its balance sheet.
Before it was sold in June, a rival bidder pulled out, claiming the estate agency’s finances were “worse than expected.”
When it was sold for £1, job cuts took place as the company sought to minimise its losses and relaunch.
Following the new pricing plan, Sam Mitchell, Purplebricks’ chief executive, said: “The process for buying and selling properties hasn’t changed in almost 200 years. It’s a stressful and costly journey that should be simplified, which is what we’re doing today.”
“Customers are now able to sell their home for free, with no hidden costs. They get everything they need to sell for free, with optional extras along the way, as well as access to Purplebricks’ expertise throughout.
“This is an important day for Purplebricks as a business. After a brutally tough few years, the housing market is showing signs of life as we move into 2024. With viewings increasing and banks offering more competitive rates, we are confident our new model will drive us towards significant market growth.”
Sir Charles Dunstone, founding partner, Freston Ventures, added that “Purplebricks was the original industry disintermediator and today we are disrupting the housing market by giving customers the option to sell their homes for free.”
Purplebricks also said it will launch an advertising campaign on Boxing Day, and that when selling through the company, will save on average £4,320.
