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:
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:
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.
CONS of this model:
We are going to match PURPLE BRICK offer with the same what is on offer by Purple Brick
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.
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."
The Seller (YOU) is responsible for:
The lawyer or conveyancer is responsible for:
Purple Bricks’ support team is responsible for: