Purplebricks has increased its charges in Australia by up to 33 per cent.
The Australian Financial Review reports that the 33 per cent hike - in Victoria - comes as the market in the state’s capital, Melbourne, is cooling.
Vendors in the state using the agency now pay Aus$5,999 to market their home compared with $4,500 when Purplebricks launched in Australia in September 2016.
Taking their home to auction, will take the total Purplebricks fee to $7,369 compared with $5,870 previously.
In Queensland and South Australia the agency has increased fees 11 per cent to $4,999 from $4,500 ($6,369 if auctioned).
In another state, New South Wales, fees have increased 10 per cent to $5,999 from $5,500 with an auction taking the fee to $7,369.
The AFR says the additional revenue will fund back office improvements.
The AFR also says Purplebricks did not advertise the increases in advance and they come “despite [global] chief executive Michael Bruce saying the Australian business was performing ahead of targets when interim results were published in London in December.”
The article - which is behind a paywall - quotes an independent Australian estate agency as saying in parts of Sydney agents charge one per cent commission, meaning that on a $600,000 home they are charging $6,000 - the same as Purplebricks, but only on a successful sale rather than as an up-front fee.
The AFR says latest figures from Purplebricks show that revenue from its Australian business surged to $11.9m during the six months to the end of last October.