Purple Bricks Appraisal

I just had an appraisal done on one of my properties by a purple bricks agent as I was curious to hear about their approach. Has anybody used them and have good or bad feedback?

 

Hiya - I haven't used them. I just checked the website - I assume their value proposition is the fixed fee model? I couldn't find any info on how they appoint/recruit their agents.

 

Gather them from the pubs, ply them with rum and get them to sign their lives away. (Probably more like health care providers with 100% coverage - sign up allied medicos and plug their services which saves the agent doing the business development and driving listings appointments).

 

@Mel_C How was your experience with them ?

 

They charge $4500 flat fee and $500 extra for the agent to do the open homes. The agent gets paid a salary and gets shares in the company based on him getting 5 star reviews from the clients. From what I can see there is only 2 agents covering the Gols coast at moment. Looks like north and south. Their signage boards, photography looks pretty on par with any other agency and at the moment places are pretty much sold before they are really even listed here so I was curious as it will save me over $10,000 to go with them. He sent an online appraisal straight away (which matched my thoughts on price etc) and their online system seems quite user friendly.

He was a bit over the top for my liking but does not mean hes not a good sales man lol. I did notice though he is not obviously an expert in the local area more broad knowledge rather than micro,

 

Thanks. There is definitely a place in the market for it, but I'm grappling with how the model will work for them financially, particularly when the market comes back a bit . Time will tell !!

 

Yeah, a bit like how the military do medical care nowadays...

I think it won't make a difference to them to be honest. The good agents will swim, the poor ones will sink.

 

Hi @Mel_C

Take care not to save money on commission but cost yourself even more than that in achieved sales price. Agents that specialize in your area are likely to have extensive databases of clients and current connects with people waiting for property just like yours...

 

2 Purple Bricks for sale signs in my local area of Brisbane. Looks as professional as any other REA board. One on my usual walk thats been up for about 3 weeks - No open home so I think that house has sold.

 

Noticed they copped a fine: Real estate startup Purplebricks to pay $20,000 fine after action by Queensland's consumer watchdog - SmartCompany

 

Purplebricks was ordered to pay a penalty of $20,000....
Purplebricks fined for misleading consumers - Real Estate Business

*sorry for the double up on the news front @Scott No Mates

 

From a seller side it will not seem much different....same interactions with agent, same listings, same signboards

From the buyer side its a bit of a nightmare. Communicating directly with the selling agent is difficult and everything is done through their online portal including offers, questions etc. Not user friendly at all and in my opinion, a real stumbling block in providing the best price/outcome for the seller

 

I've worked with a PB sales agent and he was a bit of a wreck. I had to do a coaching session with him over the phone on how to inspire confidence in his vendors and not lose his sale.
In this case the 'pay peanuts, get monkeys' saying seems about accurate.

 

i think its very new in australia, pb still iron out their agent quality, will take time to get it right, massive hit in the UK.. if i were selling in the uk i would use them but not here

 

Echoes my experiences with them to date @Simon L and agree 100%- their strong (and almost insistent) preference for online dealings in every scenario really isn't doing their vendors any favours. In my dealings to date, they avoid direct questioning and negotiating and almost purely rely on the online platform for all feedback. No rapport building, no "selling" as such and very little input into selling what is often vendor's largest and most valuable asset. Still shaking my head as to why vendors can't see the lack of value here.... get a kick-ass seasoned top agent in your area instead.

 

I've financed a couple transactions now which involved PB - each time it was a joke. Agent who couldn't be contacted, their recommended online conveyancer would not respond to time critical requests for a week or more. It's amusing looking at the general poor quality of adverts - dodgy photos and writing.

As others have said - its generally one of the most expensive assets you will own - get the help from the best, not the cheapest if you want the right outcome.

 

They work on volume. Quantity not quality. No vested interest in the highest price, they work on turnover.

You pay them whether they sell or not

 

This does not always work. I hired the supposed top area agent in Melbourne. He got less than he promised and less than I was expecting. Local agents who talk a big game do not necessarily deliver. YMMV

 

If I was a successful quality agent I would never join PB and cut my income. So why would I hope to have someone who cant sell themself, sell my property ? The PB model has one appeal - people who want to save costs and who dont think well of real estate agents and thats its flaw. Whether they actually save or lose out is another matter.

In my suburb homes sell pretty well and fairly quickly. One house has a PB board and its been on market for many months. Over priced perhaps ? Maybe a stubborn seller who wants top price, pay no fee and stubbornly refuses to accept the market price. In 9 months the property has prob dropped $50K off its highs of 12-18mths ago. Meanwhile assuming a 70% LVR the loan interest has cost $31K (it is vacant). Homes all around have sold one after another. The local PB agent seems to have listing in a radius 20km wide. Not what I would call a local agent

My reading of PB is that all web enquiries go the the home owner unless they ask the agent to deal with enquiries - extra fee. You definitely get less service for the lower fee. Additional extras :

Accompanied Viewings
An unlimited number of managed open days and private inspections for $770

Advertising Upgrades
On realestate.com.au and domain.com.au

Photography Upgrades
Add Drone, Twilight and Video

Board Upgrades
Make an impact with a bigger For Sale board

Brochures
A brochure for open days and private inspections.