HOUSINGNEWS REPORT
DATA-FED DISRUPTION IN REAL ESTATE
expansion. “I think that’s a really validation of great value, great service.”
platform. … When you want to schedule a showing, it goes directly to the home sellers.” The Market Has Spoken At its heart, the Purplebricks model disrupts the traditional role of real estate agents. “The market has spoken. The shift has taken place,” Eckardt said. “There is pressure on commissions. Ten years ago the gatekeeper was the agent, but now consumers have access to that information so now the role of the agent is more of the trusted advisor.”
Purplebricks utilizes technology and data on its website to provide consumers with self-service access to the information and services that previously would have been provided by agents. “Data and technology is helping buyers and sellers make more informed decisions,” Eckardt said, noting that Purplebricks users can “not just look at price and features of the property, but also look at the community to help them make a more informed buying decision.”
Purplebricks charges home sellers a flat fee of $3,600 to list and market their home for sale. On a property that sells for $500,000, that amounts to a savings of $8,900 over paying the typical seller-side commission of 2.5 percent. Included in the fee is a local real estate agent to help with the process along with professional photography, a 3D virtual tour of the home, yard signage, and the property is listed for sale on the local Multiple Listing Service (MLS) along with popular listing portals such as Zillow, Trulia and Realtor.com — everything one would expect paying a real estate agent the full 6 percent commission, according to Eckardt. “If you compare it to a quote-on-quote traditional real estate firm they are getting the same service,” he said, adding that every home seller gets the same level of service, whether the home is selling for $250,000 or $1 million. “Everything we do is built around the consumer.” Prospective homebuyers using Purplebricks get a $1,000 rebate out of the buy-side commission to use toward closing costs, and Eckardt noted that buyers using Purplebricks also get access to additional online offering and negotiation tools that are not available through a traditional real estate agent. “(Buyers) can transact online 24/7,” he said, adding that the online platform enables peer-to-peer transactions. “If you see a home that you like, you can make an offer directly through the
The Purplebricks’ model also releases agents from time spent prospecting
Along with a plethora of other online listing platforms now available,
“We still believe the agent is the center of the transaction. Their role is more as a trusted advisor rather than gathering information.” ERIC ECKARDT U.S. CEO, PURPLEBRICKS
WHERE HOMEOWNERS ARE MOVING IN Q2 2018 Q1 2018 PRE-MOVER INDEX (100 IS U.S. AVERAGE) 29 313
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JUNE 2018 | ATTOM DATA SOLUTIONS
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