Purplebricks

UK real estate agent lands in Oz: promises to save $15K on fees

A new kid on the Aussie property block is claiming to save you thousands – as much as $40,000 – on the sale of your home.

Purplebricks, the savvy UK property agent, has landed in Australia - eschewing the (often-hefty) price structure charged by the mainstream. Instead, it is charging an all-in flat marketing and commission fee for selling your property.

It launched in Victoria (Metro) and parts of Queensland including the Gold Coast and Brisbane in September, but now is extended its offering to Sydney Metro and the New South Wales Central Coast with hopes to go national mid year, Purplebricks Australia chief executive Ryan Dinsdale told Yahoo7 Finance.

 

I have started to see ads on TV for this and was wondering where they came from

 

The only experience I know of someone using them - paid the fee upfront, was unable to sell so is out of pocket ~5.5k if I remember correctly.

I'd prefer to choose a specific agent than just go with a cheap volume brand, as what is saved in fees can be lost in the overall deal.

 

Real estate disruption to watch in 2017

Article here of other disrupters for the year ahead like purple bricks

 

Oh look! A purple butterfly.

 

Love the ads

 

Went to an open home in an undisclosed location - the person who opened the door was about 10 minutes late for the scheduled open house and had no facts regarding what he was selling...

 

Appalling

 

We checked them out out of curiosity as I struggle awfully with agent commissions.

They advertise a fee of $4,500 online, but when you actually go through the process, that money is ONLY FOR THE LISTING.

For an "agent" to conduct openings, they charge another $550. From the agent I spoke to, this appears to be all they are worth.

I challenged them a little to see their reaction (about the process, how they conduct an open, and what motivation they have to sell if we pay up front), and they got all defensive, sent me an email rant, and didn't really answer any of my questions adequately. Not impressed at all.

SO - $4,500 simply to take some photos, have a plan drawn up (probably in the Philippines) and put the ad on a couple of websites (Not a Premiere listing if you're wondering). I could put three ads up with premiere listings for that privately.

Basically you are paying $3,500 for their "system", which appears to be focused on taking the human aspect out of the entire transaction. For example, the offer doesn't come through the agent, the interested party writes it into the system, and you get a notification.

It's obviously working for people, but it's not for me.

 

Effectively that means the agent who sells the place can devote 5 hours to opens: travel to & from, opening attendance, contacting leads, negotiating the sale, preparing documentation, liaison with b&p or valuers, following up with solicitors & vendor, presettlement inspection.

Attractive? Not!

 

Didn't Go Gecko try this a few years back? and there was another in QLD too. I don't think that the flat fee model lasted very long..

 

Have finally seen my first puple bricks listing online in SA. 1A Agnes Street Seaton SA 5023 - House for Sale #125294722 - realestate.com.au

Terrible photo shopping/manipulation, and some interesting advertising copy. Anyone else here got some #ScoMo negative-gearing love?

 

No agent photo - tick
1300 number to reach them and not mobile - tick
Pictures of peoples clothes in their wardrobe - tick

Sounds like a great marketing and sales process to begin with.

If you are a gun agent there are other ways to be more independent in you local area without flying under this type of model.

Pushing this model to sellers only focused on the commission who are not clear on what maximum value they could receive could be a recipe for disaster.

The fixed commission model doesn't seem to give them much incentive to go to achieve beyond what the seller will accept / thinks they want.

 

Are there Franchises available for this? Sounds like a good way to make a few quick $ from cheapskates before the curtain drops. Lol!

 

So pay for a franchise you expect to be worthless in the short term?

 

Either the mailbox is photo shopped or the grass is, great photos!

 

Lol! No friend, I was attempting some humour. I'm not investing in housing, or anything to do with the housing industry for that matter, to lose money.

 

I found their website focussed on listings only. As a buyer I cant find much so they have to rely on the main property listing sites for all leads. And their sign.

LOL - Look up a listing :

Property area: 314.6 m2 Land area: 495 m2

IMPECCABLE FAMILY HOME Impeccably presented family home featuring generous proportions on a grand scale Boasting 4 large bedrooms, 2 living areas, movie theatre room, study, 3 bathrooms and a covered outdoor entertainment area, this quality built home has endless features to satisfy the most discerning buyer. An inspection is a must!

1. Book viewing
2. Make an offer

WOW its that easy to buy....LOL.

I didnt dare register. I can only imagine the bombardment would begin. Like open homes I need a spam email address I think.

Disruption or just traditional agents who offer a cut price service ? A bit like calling a uber and a 1997 Ford Falcon taxi rolls up.

 

I believe they charge extra for home opens - $500

Would be lots of add ons I reckon and you usually (but not always) get what you pay for.

Some will make it work in their favor but better going with a traditional agent who is an expert in the local area.

 

It does seem vague except for auctions which it says include open home inspections.
That and buyers who message the vendor.

Hard to see what they actual "do" for the fee other than list it on sites etc. They leave negotiating to the owner unless you ask them for help. (For free)...Nobody to blame but yourself for a lower price I guess.

DoesPB attract agents who arent that successful in its model ? Or just lone wolf agents who can be easily replaced in their territory?