Purplebricks has announced to the London Stock Exchange that it is to launch in New York in Spring this year, the second area it has targeted since establishing its US arm last year.
CEO Michael Bruce has also revealed that the company has this month also expanded its existing Los Angeles operation, moving into neighbouring San Diego, Sacramento and Fresno.
The company says it is targeting the New York area because it has some of the fattest ‘standard’ commission rates in the US at 7%, a high average sale value of $561,000 and a very busy market – transaction rates are double that anywhere else in the States.
Michael Bruce (pictured, left), who recently stepped down as UK CEO to grapple with the company’s global expansion, says: “It is a sign of confidence in the potential of the US business that we are today announcing our expansion to cover both the East and West coast, with our planned entry into the New York market.
“With higher than average rates of commission and transaction volumes, New York was the natural first move on the East Coast for Purplebricks.
Referring to US CEO Eric Eckardt’s (pictured, right) previous form in the New York property market including a Purplebricks-style agency, and Senior Vice President Phil Felice’s time at Foxtons’ operation in New York, Michael Bruce says: “Our local team have an in-depth understanding of the US market and considerable experience of New York specifically.
“Whilst early days in the US we are encouraged by the exceptional quality of the Licensed Real Estate Agents that we are able to recruit, which reinforces our belief that we will deliver a better service for our customers whilst saving them thousands of dollars and delivering attractive returns for our shareholders as the business continues to grow.”
Phil Felice, as well as experience of US online residential auctions and other property businesses, worked in New York for Foxtons’ doomed local operation as Vice President of Sales for three years until it shut down in 2007.