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Thinking of using Purple Bricks?  Consider Encore Property Group - even better than Purple Bricks.

For those who see traditional agents as being too expensive, PURPLE BRICKS appear as a great answer to their property dealing. However, this is not without its risks and drawbacks.

Encore Property Group is happy to offer you a great alternative to those who are tempted to use Purple Bricks. Purple Bricks offers $4500 set price service and it's true, this is much cheaper than selling with a traditional real estate agent - but Encore Property Group can offer you an alternative that gives you more options and costss you even less! 

Before you read about our offer let us examine what Purple Bricks offer is and what model of selling properties they are using.

Please keep in mind a few important points for you:

  1. Homeowners should consider how much money they end up with at the end of the sales process, rather than hiring agents based on the sales fee.
  2. Good agents can definitely add value through the sales process to the selling price with good negotiation skills. The results will do the talking, no point saving $$$$  in commission if you sell your house for let say $30,000 less!
  3. OUR COMMISSION IS BASED ON PRICE SOLD - it is in our common interest to sell your house at the best possible price! It is that simple! THAT CAN MEAN THOUSANDS OF DOLLARS MORE THAN OTHERWISE WOULD BE POSSIBLE.

Some statistics courtesy of realestateview.com.au:

" Purple Bricks states that it has over 10,000 positive reviews but these stats are from the UK, not Australia.  Jefferies, the Global investment bank, went further and recently questioned PB’s sales figures.  Their report suggesting that some listings waited for over six months without a sale. Meanwhile the report traced successful listings being as low as 14%. With Purple Bricks service a fraction of the cost (upfront cost of $4,500), there may be a sacrifice in quality. For those who see traditional agents as being too expensive, hybrid management services such as these may be an answer. However, this is not without its risks and drawbacks."

 

Here are pros and cons we compiled for you:

PROS of this model:

  1.  First and foremost they stand out as being an extremely affordable option.  We believe is a good thing, particularly for homeowners who need to keep as much money in their pockets as possible. Real estate agents can charge commissions around 2- 2.5% cent of the sale price in Australia. Purple Bricks on the other hand charges a flat fee of $4,500, including GST. The fee includes photography, writing of the property description and getting a listing on realestate.com.au and domain.com.au
  2. They’re making agents nervous (or at least the ones that deserve to be nervous). Most agents who work hard know they will add huge value in sale process and still in DEMAND.   Australian real estate agents have a bad reputation when it comes to trust, credibility and client satisfaction. This sort of competition helps to keep improving industry standards. Recent data indicates that around 20-30% of properties fail to sell the first time they’re listed on the market. That means roughly 2-3 out of every 10 Purplebricks clients could potential walk away $5000 out of pocket and with a home still for sale.

  3. Communication: buyers and sellers can communicate directly through the Purple Bricks website.

 CONS of this model:

  1. This entire business model and service is built around incentivising agents to list your property for sale with them, not to actually get your property sold.! This is the biggest drawback.
  2. The most people don’t realise that YOU WILL  pay Purplebricks their full fee even if you don’t sell your home! Regarding payment, they offer two options, either upfront or a deferred option of 12 months later, or on settlement if the property sells. The price is the same for both options. Unlike most real estate agents, you do not have to make an exclusive agreement with Purple Bricks, but whether you sell the property with them, or through another agent or you decide not to sell the property, you still have to pay the fee.
  3. However, my biggest PROBLEM with their model is the fact that there is no real incentive for the agent, who’s looking after your property sale, to get it sold. There is no drive for them to actually work hard as they get paid when they list your home, not when they sell it.
  4. Cooling off period: only 1 day before you are locked into paying for your agreed service.
  5. Legal help: you are responsible for providing a Contract of Sale, something which real estate agents often do. Purple Bricks have a limited involvement in settlements. This means more work for you.

OUR OFFER

We are going to match PURPLE BRICK offer with the same what is on offer by Purple Brick

  1.  Professional photography and marketing is included
  2. Appraisal included
  3. Our Sales Representative will guide you through the conveyancing process
  4. Free sale board
  5. You pay the fees - whether you sell or not ( same as with Purple Brick )
  6. You will be notified about contacts and manage your own appointments with prospective buyers
  7. Once you have an offer and accept our sale expert will support you with the process

 Just remember it is you who will be really responsible for the sale process. We offer the same as Purple Brick - support only not work itself.

Should you change your mind and prefer we organise all for you including selling, we are happy to give credit towards marketing and commission for amount paid.

Purple Brick What others say

Let us quote what

Localagentfinder and others like them claim to provide a service that finds the consumer the best agent, but that is just fantasy! They are nothing more than a referral service and refer sellers only to agents who are willing to take part; this ‘willingness’ involves paying these intermediaries 20 per cent of the commission received from the referred sale – that’s something they don’t tell potential sellers up front.

Purple Bricks also concerns me with its lack of transparency and add-on fees.

They charge a $4500 fee and no commission, which sounds enticing, if you are selling.

However, I understand that $1000 goes to the agent upfront, essentially for doing an appraisal of your home, then $3500 goes to promotion and marketing, which is not itemised, and presumably some of the money goes to the Purple Bricks business itself. Then you are effectively on your own.

What you do not hear is that extra fees are involved if you want them to conduct home opens and when you receive an offer all the details have to be sent to a law firm for a contract to be put together.

If you want to use a settlement agent of your choice you are charged an extra $300-plus... If it sounds too good to be true, it probably is."

Breakdown of responsibilities under Purple Bricks model

The Seller (YOU) is responsible for:

  • Entering lawyer details on the online platform within 24 hours of agreeing to an offer;
  • Ensuring the lender has all the relevant information to proceed with the loan;
  • Ensuring the lawyer has all the details and paperwork they need;
  • Chasing the lawyer for paperwork and progress;
  • Agreeing exchange and settlement dates.

The lawyer or conveyancer is responsible for:

  • Ensuring the lender has all the relevant information to proceed with the loan (both buyer and seller lenders)
  • Advising and supporting the seller in relation to problems arising in building & pest reports, strata inspection, or mortgage position
  • Obtaining leases and legal documentation as well as liaising with the buyer’s lawyer
  • Agreeing exchange and settlement dates

Purple Bricks’ support team is responsible for:

  • Ensuring that the seller has put their lawyer’s details onto the platform
  • Ensuring that the mortgage arrangements are in place
  • Advising and supporting the seller in relation to problems arising in building & pest reports, strata inspection, or mortgage position
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