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Purple Bricks

Discussion in 'General Property Chat' started by Jasmine, 29th Aug, 2016.

  1. Jasmine

    Jasmine Well-Known Member

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  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Discount sales commission - there's high monthly costs to agents to support real estate marketing websites, carry liability & professional indemnity insurance, compliance, rent etc. Which corners are they cutting? Eg reduce open times to 20 minutes?
     
  3. Richard Williams

    Richard Williams Buyers Agent - Southeast QLD Business Member

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    Its not very clear from their website what their actual service is and what they are providing...
     
  4. Inov8ive

    Inov8ive Well-Known Member

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    Something tells me that the agents could survive with a little bit of fat being cut out of their commissions. The level of work they provide + their overheads is not inline with what they are receiving. Maybe in the old days I would disagree, but lets be honest RE dot com brings in the buyers these days. A good agent can add value but even the bad agents are cleaning up. I welcome the overhaul
     
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  5. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Hello tried this recently and I can honestly say I have never come across a single prop listed by them, so doubt they will make any signficant inroads either
     
  6. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    "this will be $11,500 cheaper than if they used a traditional estate agent charging a 2.2 per cent commission"

    I reckon a decent REA would make this ^^^^^ up due to local market knowledge and existing contacts.

    Also the $4500 fee charged will likely be halved or close to it so who is going to ditch the traditional method to get on board.

    Dealing with the clientele that would use this model would be a high PITA factor as well.

    Cant see it working.
     
  7. Scott No Mates

    Scott No Mates Well-Known Member

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    From what I have read, they 'list' the property then screw some other bunny to do the work.

    So doesn't this resemble getting the cheapest agent to do the work not the best? The owner engages this mob based on ?.... & then you've got no control over who deals with your property. Great outcome.
     
  8. Brady

    Brady Well-Known Member

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    Bringing in the buyers isn't really an agents problem, it's bringing in the sellers - they need listings. Agent's #1 goal is to get the listing. Good agents can definitely add value through the sales process. But if they don't have the listing then there is no commission.
     
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  9. Inov8ive

    Inov8ive Well-Known Member

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    Well of course bringing in the sellers is the agents priority, how else would they get paid? Not really what we are talking about though. Talking about whether or not agents should be paid the type of commissions that they are and if a lower cost approach is viable/
     
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  10. Mick Butterfield

    Mick Butterfield Well-Known Member

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    List or die in Real Estate.
     
  11. Brady

    Brady Well-Known Member

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    Not sure how much you think most agents make and where the commission goes.
    Most agents I know are always looking for more listings, hungry agents will be literally door knocking, going to networking events, cold calling home owners, anything to get leads on more listings.
    Even when they manage to get someone who is selling doesn't mean they're going to get the listing, they're likely 1 of 3-4 other agents looking at the property.
    It takes time to find a client selling, then time to research on the property to win the listing - this is where good agents do well - winning the listing.
    Offering a very cheap model will likely help them in attracting the business.

    I believe this approach is cutting the commission cost down, hopeful to make up in volume and less time looking for more listings. Will be interesting to see that their service offers, will it be the same level as a traditional agent. The results will do the talking, no point saving $11,500 in commission if you sell your house for $20,000 less
     
  12. Coastal

    Coastal Well-Known Member

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    Its a bit like GoGecko
     
  13. Inov8ive

    Inov8ive Well-Known Member

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    Yes commission based sales is tough going, no doubt about it. I see the people on the street near my office everyday working for commission only for various charities. Some are successful but most are not. As a seller, I don't care how tough an agents life is and how hard he needs to work to get his listings. All I care about is whether or not he/she can achieve the result I want for the minimum outlay. I have sold a few properties and on each occasion I have felt that agent got the cream. And I have purchased many properties and very seldom has an agent ever influenced my decision or convinced me to pay a premium. Quite the opposite actually, I am forever chasing them up and wanting to look at properties and many are not accommodating to buyers.
     
  14. Brady

    Brady Well-Known Member

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    Would you go back to any of these agents again, wouldn't have thought. It's all results based, which is what will prove if the business will be successful. The agents that you had that were paid a whole lot more, how much harder do you think they would work if they were getting 1/2 that commission?
     
  15. Inov8ive

    Inov8ive Well-Known Member

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    To be completely honest, I think they would have worked exactly the same. Put the listing RE dot com and attend the open homes, answer any calls or emails. My places were in high demand areas which naturally attract lots of interest. Its not that the agent did or didnt do anything in particular. Its just that I dont think he deserved 20k for the three week listing period and three open homes he attended.
     
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  16. Scott No Mates

    Scott No Mates Well-Known Member

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    Quote of the day. [​IMG]

    As a participant in the market we all see good and bad agents, those from out of the area, skilled negotiators and timewasters. We go to the poor agents to buy and avoid them if that's the impression they've created when we come to sell as we don't want them on our properties.
     
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  17. Inov8ive

    Inov8ive Well-Known Member

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    Forgive me if I don't shed a tear for them
     
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  18. Agent30yrs.

    Agent30yrs. Well-Known Member

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    No matter who wins the rat race, you can be pretty sure they will be mostly rat.
     
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  19. Jasmine

    Jasmine Well-Known Member

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    Now that's the quote of the day!
     
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  20. josh123

    josh123 Active Member

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    I have sold 2 properties in the past privately as we could not justify the exorbitant fees realestate agents charge with great success. The first was through buymyplace.com which cost us all up about $950 including an auctioneer, professional photographer and advised on both domain and re.com.au. The second was a bit sneaky as we poached buyers from other similar properties that were open for inspection.