Purplebricks

[9] The brothers previously led one such agency, Burchell Edwards, and believed that a lower-cost, digital model for residential property sales could be developed that reduced expenses associated with running a chain of physical offices.In October 2012, the name was changed to New Broom Limited, signalling a desire to sweep clean the existing UK residential property market and bring about a fresh approach.[20][21] In December 2015, Purplebricks formally announced its plan to launch on AIM later that month, making it the first online estate agency to debut on the stock market.[22][23] Ahead of the float, the company stated that it had 4,300 residential properties listed for sale—nearly twice the number of the next largest online agency—and intended to use raised funds to further boost its national presence, acquire more agents, and invest in the brand and technology.[30] Purplebricks expanded into the United States in 2017, beginning operations in Los Angeles before moving into San Diego, Sacramento, Fresno, and then New York in 2018.[33] Purplebricks' business proposition remained essentially the same for U.S. customers: the company charged a listing fee of $3,200, which sellers were required to pay regardless of whether their home sold.[39][40][41] In July 2018, Purplebricks expanded their operations into Canada through the $38 million acquisition of DPCF, a Canadian real estate company that also positioned itself as "commission-free".[46] Forbes magazine reported in January 2020 that an email was sent from Purplebricks Canada's marketing department to all employees asking for positive reviews from friends and family regardless of whether they had had any business dealings with the company.[47] In June 2020, Purplebricks, Axel Springer, and venture capital firm Project A made further investments in Homeday to help the company expand its operations.[61] In August 2021, Purplebricks announced its strategic focus was now "fully on the UK", where it planned to accelerate its model, extend its market share, and continue to grow revenue.[67][68][69] The company does not maintain a branch network of brick-and-mortar estate agencies, which reduces fixed costs associated with rent, energy usage, and other operational expenses.[72] In 2016, Purplebricks began using the tagline "commisery", meaning the misery home sellers feel about paying commission, to distinguish itself from traditional real estate agencies.