Estate agency Purplebricks has today launched a new pricing structure that will let customers sell their homes “for free”.
The announcement follows its recent acquisition by Strike, the estate agency group backed by Freston Ventures.
According to the firm, all Purplebricks customers can benefit from the service, which includes a home valuation, negotiation, listing on a major portal, and an app that lets them control their listing and viewings. However, customers can choose to pay for additional services as and when they see fit.
For example, the new pricing model will offer customers the choice of paying for a premium Rightmove listing or hosted viewings. It will also provide access to “market-leading” mortgage deals and conveyancing services.
Purplebricks said it will be “fully transparent” about the choices available to buyers and sellers.
The new operating model also includes an account manager to support customers through the process, working alongside expert mortgage and conveyancing professionals.
Under the new strategy, the Strike name will also be retired and replaced by Purplebricks.
Until today, customers using the estate agency would have paid a flat £999 fee for a standard package to sell their property, and then up to £1,699 for a more advanced offering.
Sam Mitchell, CEO of Purplebricks, 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 homes 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.”
Mr Mitchell described the announcement as “important” for Purplebricks as a business. He explained: “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 of Freston Ventures, commented: “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.”
He added: “We believe there is a better way to sell your house and we are building a market-leading proposition to deliver it.”
Commenting on the offer, Ranald Mitchell, director at mortgage brokers Charwin Private Clients, said: “This is an aggressive move from Purplebricks, a major brand in online estate agency that hasn’t been without their troubles this year, but all the same, this will certainly grab headlines. They are intent on piling pressure on paid estate agencies who will struggle to compete on the back of an already tough year.”
However, he noted: “What they are offering is no doubt an entry-level package that can be upsold to a more comprehensive service, but it is sufficient to sell a property.
“Service enhancements include better image representation of the property and a fully managed sale.”
Mr Mitchell added: “Altogether, it is a good deal for home sellers and I would expect a strong uptake on a trusted brand.”
Meanwhile, Samuel Ewen, managing director at Rosehill Financial Services pointed out “If the service is free, you are the product”, urging people to be aware of “bolt-ons”.
