The share price of hybrid estate agency Purplebricks dipped yesterday after it announced its US expansion will begin in California.
Purplebricks' share price started the day on 415p and closed slightly down at 400p. The firm floated on the stock market in December 2015, with an initial share price of 100p.
California has been identified as the launch state for Purplebricks' North American expansion due to its 'strong housing and economic fundamentals'.
According to data compiled by the California Association of REALTORS and shared by the UK agency, the Sunshine State is the top ranking national location for transactions and generates sales commissions of over $11.5 billion each year.
In preparation for its US launch, Purplebricks says it will soon be recruiting ‘hundreds’ of full-time real estate agents. They will be referred to as ‘Local Real Estate Experts’ as opposed to ‘Local Property Experts’.
The agency says its new recruits will be trained and each ‘LREE’ will be given territorial exclusivity determined by zip code.
Purplebricks says its US marketing campaign will be led by TV advertising.
The US operation will be headed up by Eric Eckardt, who is described by Purplebricks as a 'real estate technology veteran'.
"Our plans are progressing well and we remain on-course to launch in the second half of 2017,” Eckardt, US chief executive, confirmed yesterday.
Michael Bruce, founder and group chief executive, added: “We are absolutely delighted to be moving forward at pace with plans for what will be an exciting US launch."
"We are looking to recruit the very best real estate agents who want to be highly successful and who want to spend their time helping and supporting customers rather than prospecting for leads."
Purplebricks launched in Australia last summer and revealed its plans to expand in the US this February after securing an additional £50 million in investment funding.