- Purplebricks said it chose fast-growing cities for ‘buoyant real estate markets’
- Site will roll out on Tuesday, with users able to list homes for $3,600 (£2,714) fee
- Follows rollout in Los Angeles, San Diego, Sacramento, Fresno and New York
Online estate agent Purplebricks will be expanding its US footprint with plans to launch in Las Vegas and Phoenix next week.
Purplebricks said it chose the fast-growing cities for their ‘buoyant real estate markets’, noting average property prices of around $290,000 (£218,600).
The site will roll out in both locations on Tuesday, with users able to list homes for a $3,600 (£2,714) fee, followed by a buyers’ agent commission on closing.
Going West: Online estate agent Purplebricks will be expanding its US footprint with plans to launch in Las Vegas and Phoenix next week
Purplebricks claims that a local homeowner selling for $261,000 (£196,777) would save around $4,230 (£3,188) compared with the standard estate brokerage commission of five to six per cent.
It comes nine months after the company first dipped its toe into the American real estate market, starting in Los Angeles last September.
That was followed by a rollout to San Diego, Sacramento, Fresno and New York.
The company has hired local estate agent Marcus Fleming as its regional director reporting to US boss Eric Eckardt.
Chief executive Michael Bruce said: ‘The Purplebricks model has continued to achieve great results on both coasts by providing excellent service and saving home sellers in California, Connecticut, New Jersey and New York thousands of dollars.
‘We see tremendous opportunity in Las Vegas and Phoenix, as both markets have ideal demographics comprised of consumers eager to buy and sell homes while saving money.’
The news sent Purplebricks Group shares up 2.4 per cent to 365.60p in morning trading.
Bright horizon: Purplebricks views Las Vegas as a ‘buoyant real estate market’
The estate agent earlier this year sold off an 11.5 per cent stake in the business to German media publisher Axel Springer in exchange for a £125million investment.
It included a £100m subscription of new shares to help turbo-charge Purplebricks’ US expansion.
But the company also warned in March that its annual revenues would fall short of company forecasts following a financial hit from the Beast from the East.
It said the torrid weather conditions in late February and early March would shave around five per cent off its group revenue predictions of £98m.