Purplebricks will once again seek to disrupt the housing market by allowing customers to sell their homes for free as part of a new operating model that replicates the one offered by Strike, which recently acquired the online estate agency backed by Freston Ventures.
The company, which stopped trading on AIM in June of this year, is hoping to revive its fortunes under the new operating model.
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.
Alongside the new pricing model, Purplebricks will launch an advertising campaign on Boxing Day that highlights the stress many people go through while selling their home through traditional estate agents – and demonstrates that there is an alternative route by saying “goodbye to the bull and hello to Purplebricks”.
On average, UK homeowners can save £4,320 when they sell using Purplebricks, the company claims.
Under its new strategy, the Strike name will be retired and replaced by Purplebricks, reflecting the nationwide recognition of a brand that disrupted estate agency by giving customers the ability to control the sale of their most valuable asset, according t0 Sir Charles Dunstone, founding partner of Freston Ventures.
He said: “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. We are creating a new force in estate agency that offers customers a much better experience for no cost. This is a great day for anyone looking to sell their home.
“At Freston Ventures, we focus on building household brands that are trusted by consumers across the UK. With decades of experience in building and growing businesses such as Carphone Warehouse, TalkTalk and Five Guys, we know what it takes to create brands that people love. We believe there is a better way to sell your house and we are building a market-leading proposition to deliver it.”
Sam Mitchell, CEO at Purplebricks, added: “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.”
“After a brutally tough few years, the housing market is showing signs of life as we move into 2024,” he added. With viewings increasing and banks offering more competitive rates, we are confident our new model will drive us towards significant market growth.”
well, this is going to go down like a s£&t in a swimming pool
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Can you imagine the lack of incentive to get the best price – homeowners proceed at their folly
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Nothing is for free, they should also be banned from saying how much money people could save by using them or at least be forced to say how much money will be lost by not having a proper agent working to get them the best price.
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that is impossible to quantify
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Customers aren’t stupid and this model has been found out for what it is…
Neither Strike nor PB sell your property for free. On the new pricing structure on the PB website you have to pay for a Rightmove Listing at £399 and for their Boost package £899 which as Strike declare in their small print is what 60% of their customers do.
In any other industry this “sell for free” strap line would be called what it is… A CON!
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I’m looking forward to my free mobile phone and meal at Five Guys
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I wonder if their ‘pet conveyancer’ and ‘pet mortgage broker’ are going to increase their referral fees??????
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Tbh, all conveyancers should up their fees, “their pet conveyancers” are cheap compared to many on the market, they have their faults, but so does every firm, even if we don’t want to admit it
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It’s been a while since we had some PB news to cheer us up! Let’s see how many fall into the trap…
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Strike – and now PB after Strike has turned PB into itself – knows its market. It’s the Estate Agent for people who don’t like Estate Agents.
Their target market is simply, people who don’t see the value a proper estate agent brings and doesn’t want to pay for that value, thus…
– The client pays next to nothing
– They then receive the service they deserve, because you get what you pay for
– The client’s beliefs are reaffirmed that estate agents, are indeed s h i t.
– PB suffer no problems, because as expectations were so low to start with, they at least delivered those expectations.
It’s up to us to make sure that message is firmly delivered.
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Eventually they will realise that the model is flawed. But hey it’s their money they are wasting – fortunately not mine.
It will of course go down the same way as the original PB.
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