Aim-listed PurpleBricks share price drops after it reveals plans for Californian expansion

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Shares in Purplebricks closed down 3.61 per cent at 400p (Source: Getty)

Purplebricks is set to launch in California this year, the online estate agent announced yesterday.

Expansion to other US cities is also on the cards, the Aim-listed firm said in a statement.

Purplebricks has hired Eric Eckardt, who has experience in property technology, as its US chief executive to lead the expansion.

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The online estate agent said that California ranks number one in transactions nationally with total sales commissions exceeding $11.5bn (£8.9bn). It added that it is on a look out for local estate agents in the area to cater to the Californian market.

Michael Bruce, founder and group CEO of Purplebricks, said: “We are absolutely delighted to be moving forward at pace with plans for what will be an exciting US launch.

“We will be giving sellers and buyers a unique and seamless experience.

“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. We will provide them with a stimulating customer centric culture and market leading support to help them build scalable, profitable businesses,” Bruce added.

Despite the news of the expansion, shares in Purplebricks closed down 3.61 per cent at 400p.