Australia has had an infatuation with real estate for a number of decades now, as many Australians have generated significant wealth through real estate as the local market has been rising steadily since the early 1980's.
Among a number of industries that have done very well from the popularity and boom of real estate prices has been real estate agents who typically charge around 2% plus marketing costs to vendors wanting to sell their real estate. Based on the median price property in Australia of just over $600,000 nationally the typical cost charged by agents averages around $12,000 plus marketing cost which can range but usually are around $2,500 bringing the total to around $14,500.
This where a new entrant to the Australian market comes in, based in the UK and has just expanded to Australia, Purplebricks is launching and is bringing a new low cost fixed fee disrupting listing model to the Australian real estate market.
By tapping into the latest digital media technology Purplebricks can lower the cost to sell real estate and is offering their service for a fixed fee of $4,500 per property. This includes all marketing costs including advertising on popular local online real estate sites like realestate.com.au.
Having listed in the UK and with a decent starting marketing budget of $17.2 million Purplebricks are looking to make a big impact in Australia as they look take market share from the local competitor real estate agency's.
For further information visit:
http://www.afr.com - Subscription required
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I am a private trader and equities investor that loves the trading and investing world, following the markets and everything in between.