How Does Purplebricks Make Money? | Real Estate Insights

Purplebricks is a UK-based online estate agency that has disrupted the traditional real estate model by offering fixed-fee services instead of commission-based pricing. Unlike high-street estate agents that charge a percentage of the property sale price, Purplebricks operates on a low-cost, tech-driven approach. But how exactly does Purplebricks make money? This article breaks down its revenue streams and business model.

The Purplebricks Business Model

Purplebricks is a hybrid estate agent, meaning it combines online services with local property experts to assist home sellers. The company differentiates itself from traditional agents by:

• Charging a fixed upfront fee, regardless of whether the property sells.
• Offering an online platform where sellers can manage listings, viewings, and offers.
• Providing optional add-on services such as premium listings and conveyancing.

Unlike traditional agents who earn commissions only when a sale completes, Purplebricks earns revenue whether or not the property sells.

How Purplebricks Makes Money

1. Fixed Upfront Fees

Purplebricks charges home sellers a fixed fee instead of a commission. This fee varies by region but typically includes:

• Standard fixed fee: Usually between £999 to £1,499 (higher in London and surrounding areas).
• The fee is paid upfront or can be deferred, but still payable even if the property doesn’t sell.

This model ensures Purplebricks generates revenue on every listing, whether the seller succeeds in selling or not.

2. Optional Extras & Upsells

To maximize revenue, Purplebricks offers additional services beyond its basic listing fee, including:

• Premium Listings & Featured Property Ads

  • Sellers can pay for enhanced visibility on platforms like Rightmove and Zoopla.
  • Prices vary depending on the package chosen.

• Accompanied Viewings

  • While sellers can manage viewings themselves, they can pay extra for a local expert to conduct them.
  • This typically costs £300 to £500, depending on the service level.

• Photography & Floor Plans

  • While basic marketing is included, sellers can opt for higher-quality professional photography at an additional fee.

These optional extras provide a significant boost to Purplebricks’ revenue.

3. Mortgage & Conveyancing Services

Purplebricks partners with third-party financial and legal service providers, earning a commission when customers use:

• Mortgage brokerage services – Partner companies provide mortgage advice and products.
• Conveyancing & legal services – Sellers can use Purplebricks’ partnered conveyancers, generating referral fees.

Since most property transactions require conveyancing and financing, these services create a consistent revenue stream.

4. Lettings & Property Management Fees

Purplebricks also operates in the rental market, offering landlords:

• Tenant-finding services (fixed fee per listing).
• Property management services (monthly subscription or one-time payment).

While the majority of Purplebricks’ revenue comes from sales, the lettings division provides recurring income.

Challenges to Purplebricks’ Model

While the fixed-fee model provides revenue certainty, it also faces challenges:

• Sellers pay regardless of sale success, leading to dissatisfaction if properties don’t sell.
• Competition from traditional agents who offer a "no sale, no fee" model.
• Declining market share as homeowners seek more personalized, commission-based services.

In 2023, Purplebricks was acquired by Strike, signaling a shift in its business approach due to financial struggles.

How Fraser Bond Can Help

While Purplebricks offers a low-cost approach, many sellers and investors prefer personalized, high-touch service from trusted estate agents like Fraser Bond. Here’s why we stand out:

• No upfront costs – Unlike Purplebricks, we operate on a commission basis, ensuring we are motivated to secure the best price for sellers.
• Comprehensive property marketing – Our team provides bespoke marketing strategies, professional staging, and targeted buyer outreach.
• Expert guidance – We offer tailored advice for investors, landlords, and developers navigating the London property market.

For those seeking a premium, results-driven estate agency, Fraser Bond offers expertise that Purplebricks cannot match.

Conclusion

Purplebricks makes money through fixed upfront fees, optional add-ons, mortgage referrals, and lettings services. While this model offers cost savings for some sellers, it lacks the full-service, commission-based incentive of traditional agents. As a leading property consultancy, Fraser Bond provides expert, tailored estate agency services, ensuring optimal results for property buyers, sellers, and investors.