Purplebricks evolves its offering in Australia so not all commission upfront

Purplebricks is set to amend its offering in Australia so that half of the commission fees will be payable on sale, rather than all on signup.

Purplebricks Global COO Neil Tavender said the changes were a natural evolution of a business.

They have however raised their commission again, progressively from its initial flat cost of $4500.

Purplebricks has sold over 4,000 homes since its launch.

Kenny Bruce, its co-founder, toured Australia to speak with their listing agents.

“For customers, our new offering reduces exposure when a home isn’t sold whilst still offering a flat fee that side-steps large com

The new structures sees:

• An all-inclusive fee of $8,800 incl. GST when selling with Purplebricks. If the property goes to auction, an additional fee of $600 incl. GST is incurred by the customer.

• Only half of this fee is paid on listing ($4,400 incl. GST), although every customer can choose to defer this payment for six months or until settlement.

• The remainder of the fee is only payable when the home is sold following settlement.

• Access to a best-in-class marketing package that now includes ‘premiere’ listing on realestate.com.au, the cost of which would normally be paid by the seller and range between $1000 and $4000. This is coupled with professional photography, floor-plan, for sale board and other marketing and advertising as part of the overall package.

As part of the changes, Purplebricks agents will have the opportunity to more than double their income per listing, receiving an additional payment on the successful closure of the sale of the home.

“Our agents will continue to be highly motivated to achieve strong sale results and have the bandwidth to provide the highest level of service as we expand our footprint across the nation.”

“An entrepreneurial franchising model has always been at the heart of our business and is what has facilitated tremendous growth for Purplebricks across the globe." Tavender said.

Purplebricks Australia will honour terms and conditions in all existing contracts.

The offering will be in implemented from 1 October.