‘We’re here to sell houses, not to list them’, Purplebricks boss insists

Purplebricks boss Vic Darvey has vowed to get his house back in order.

He has also said that the agent sells the most homes in the country – and strongly insisted that the firm will not change its fixed fee format.

In the full interview with the Daily Telegraph yesterday – an abbreviated version was published at the weekend – Darvey told the paper that the format will “definitely not” alter.

He said: “We firmly believe we have the most successful model in the industry. Why do we say that?

“We sell more houses than anyone else in the marketplace.”

Elsewhere in the article, the Telegraph says that Purplebricks has taken criticism for not publishing the number of homes it sells.

However, Darvey quotes industry research claiming that Purplebricks sells more than three times as many homes as the next biggest estate agent, with 77% sold within a year.

In July 2018, the claim was made in research by Twenty Ci. More recently, the same data analyst said that the total market share of hybrid firms stands at around 7%, and that firms in that sector would have to change significantly in order to raise that proportion.

Darvey told the paper: “We’re here to sell houses, not to list houses.”

He also says that it is currently looking at how to compensate its Local Property Experts “in a way that is in partnership with the desired customer outcome”. He did not go into details.

The Telegraph also notes in the article that Purplebricks’ Canada arm is loss-making “while the UK operating profits of £5.2m scarcely justify even the much reduced share price”.

However, Darvey, 46, sounds a confident note, saying his three main goals are to boost profit margins, increase the average ‘basket’ size of sales as sellers pay more for services, and raise Purplebricks’ market share to 10%.

He added: “As far as the shareholders are concerned, I say stick with us, we’ve got a very clear plan.”

Yesterday, Purplebricks shares closed at 112p, up about 1% on the day’s trading.

Purplebricks says it sells three times more homes than any other agent in the UK

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33 Comments

  1. Ostrich17

    Twenty Ci need to clarify that the 77% is not derived by using the industry accepted method of calculating sales/listings and that PB actually achieves less than 50% – so at least half their clients will be  entitled to refunds if Darvey is going to  change the model from listing to selling houses !    

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  2. JonnyBanana43

    So how many houses have you sold?

    You sound like a Labour remainer MP whose constituents voted leave!! Your job won’t last for long…!

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    1. padymagic

      “Elsewhere in the article, the Telegraph says that Purplebricks has taken criticism for not publishing the number of homes it sells.”

       

      I sold 20 million  houses last week, you cant prove if I’m lying cos I ain’t gonna publish the figures officially, now am I?

      Boris Johnson, Trump etc, they all tell the truth and nothing but.

      Just don’t expect the truth to be published officially.

      Never gonna happen.

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  3. GPL

     

    Time for a rebrand Vic……

     

    FAILINGBRICKS.

     

    We’ll say this C L E A R L Y for You Vic….

     

    FailingBRICKS are NOT Estate Agents – they are ONLY “Property Listers”.

     

    Your clients? pay up-front for FAILURE. You charge your clients? when you fail to Sell? their homes. Your business model is simply Property Listing.

     

     

     

     

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  4. Ric

    Too much air time.

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    1. NotAdoctor32

      Given deliberately because they are the only articles you can rely on the same old posters banging the same boring drum.

      Clicks guaranteed.

      You want less PB posts, get GLP and the rest of the crew to post on something else and leave these ones blank.

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      1. GPL

        If those that spouted the same old “share wobble/stabilisation PR” got away with their one-sided waffle that wouldn’t be democracy Doc.

        You may not like the “posters right to free speech/reply” on here however witness the “crash n’ burn” of Emoov & others who also issued “drivel PR statements” like confetti!

         

        Suck it up Doc! Free Speech works both ways!!

         

         

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        1. ARC

          Sounding off on industry message boards with about 1000 views is not going to have an effect on the consumer in the street, the investor looking to invest. It’s just giving PIE some clicks.

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          1. PeeBee

            Nearly 3000 views now, ARC – some of them from the wider media.
             
            Plant an acorn – you go figure the rest by running straight into the oak tree you’re denying exists.

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      2. Woodentop

        If left to their own, these promotions by PB would continue to show a one sided view, which is arguably misleading … oh that brings to mind why do investors invest with them!

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  5. AgencyInsider

    He also says that it is currently looking at how to compensate its Local Property Experts “in a way that is in partnership with the desired customer outcome”.

    Mr Darvey, you could try something called ‘commission’ which is only payable if the property sells. Who knows, it might catch on.

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  6. downdoobydodowndowndubaduba

    very good use of the telegraph free advertising!. I’m surprised at them entertaining bricks. The sun might have been more appropriate for made up stories.

    “currently looking at how to compensate its Local Property Experts “in a way that is in partnership with the desired customer outcome”– —Pay them properly – except they can’t afford to pay them properly and will continue to have very disgruntled LPE’s working daft hours for peanuts – and thinking that someday they will get compensated for all their efforts. Good luck with that one.

    Dreadful model and dreadful waste of investors money.

    PS – very good Panorama programme last night on Fund managers gambling investors money!

     

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  7. GeorgeOrwell

    La La, Dipsy, Po – and their NEW Play Partner, Vic
     
    All starring in the latest episode of “Dreamland”      

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  8. Hillofwad71

    He seems  to have become a bit of a PR  disaster.Where have they dug him out of?

     “We’re here to sell houses, not to list houses.”

     

    He doesnt even understand what Bricks model is all about !

    Investors want to hear he has some cunning  plan to halt the decline in instructions in the UK  and increase listings and revenue

     

    Same old won’t simply do

     

    “However, Darvey, 46, sounds a confident note, saying his three main goals are to boost profit margins, increase the average ‘basket’ size of sales as sellers pay more for services, and raise Purplebricks’ market share to 10%.”

     

    A triple whammy of failure

     

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  9. GPL

    He also says that it is currently looking at how to compensate its Local Property Experts “in a way that is in partnership with the desired customer outcome”. He did not go into details.

     

    Vic?

     

    Compensate?

     

    The people You failed to Sell for?

     

    Now that’s an idea!

     

    Your LPE’s must be wondering who you are and what exactly it is that you bring to FailingBRICKS.

     

     

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  10. GPL

     
    He added: “As far as the shareholders are concerned, I say stick with us, we’ve got a very clear plan.”

    ……said Baldrick!
     

     

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  11. Woodentop

    strongly insisted that the firm will not change its fixed fee format.  
     
    Bye. bye Bricks you just don’t have a clue. You have your head buried in the sand. You do not offer anything that a High Street Agents doesn’t, less service than the high street, confirmed committed to charge for failure, refuse to disclose the real completion of sales and offer no incentive to get the public the best price, as legally required. There are serious doubts about manipulation of reviews, you don’t treat your staff fairly (according to them), you don’t give any incentive to your investors, you have spent meggar £m’s and lost it!  
     
    The worst CV for an employer!  
     
    No wonder the public still have confidence and use the High Street and all the other would bee’s have gone under doing the same thing.
     
    I still can’t get my head around why any sensible investor who follows due diligence with PB track record and their ilk would invest so much for a consistant track record of failure, lack of understanding of the market and the pitfalls …. oh yes brokers not regulated for providing sound advice.

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  12. The Future Is Tech

    The LPEs do all the work. They price, list and agree the sales. After that it all goes horribly wrong. Useless solicitors on the pay later tie in, no sales chasers and high level of sales falling through due to sellers being able to click accept on offers with no due diligence!!

    What makes PB work is the agents and the booking system. From then on management is just a Mickey mouse club. No clue on how to run a business and anyone can get in through a recruitment agent.

    How long will Vic last? He has no agency knowledge and has no clue what life is like as an LPE.

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  13. Property Pundit

    Someone tell Vic you can’t disrupt a service (people) industry on price and expect to make money.

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  14. Hillofwad71

    This has to take the Biscuit .
    Our very own PeeBee has  found this on Trustpilot
     
    A Bricks LPE for the Black Country  reviewing himself
    Is Vic there Hello Vic Arnyone there !
      https://www.purplebricks.co.uk/search-local-expert/stephen-hendriks-1273755  
     
      11 hours ago Reviewer contacted
     
    Stephen Hendriks
    I just wanted to say how wonderful we have been treated by Stephen Hendriks, he is always there when you need help – even when I couldn’t work my laptop he talked me through it! He’s always there to answer any question and is a great man and an asset to you.   

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    1. revilo

      As hilarious as that might be, seems PeeBee needs to polish his specs and look again.. The customer reviewers name is at the top!

      Unless its been edited of course!

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      1. PeeBee

        Nothing wrong with my eyesight, revilo!
         
        The review – trustpilot.com/reviews/5dae1cf460485806ec3a9857 – clearly shows the reviewer’s name as “Stephen Hendriks”.
         
        **EDIT**
         
        …clearly showED the reviewer’s name…”
         
        Surprise, surprise – it has been removed.
         
        You will find a screenshot on my Twitter timeline.  Frau Renshaw has been provided with it also.
         
        #hendriksgate

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        1. PeeBee

          The stated reason for removal?
           
          “The reviewer has created multiple profiles to review the same company multiple times.”
           
          Bull. 
           
          Pure, undaulterated MDT.
           
          The subject ‘reviewer’ created their profile on 10 October.  They reviewed another company at that point.
           
          What you seemingly DON’T know is that the IDENTICAL review was posted again, 45 minutes later, by another “reviewer”. 
           
          It was their THIRD review posted on Trustpilot – the account being created in 2015.

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      2. Hillofwad71

        Checked myself and the reviewers name was Stephen Hendricks !!

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  15. Long841

    This sounds suspiciously like Vic is looking to change the pay terms of LPE’s to be based on sales not listings. So if I have this right, the shareholders take the money from upfront fees and pay the LPE’s on completion…Let’s see how many LPE’s stick around if that comes to pass.

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    1. Woodentop

      What would VIC do on the same terms? As we have seen with many companies, the boss rakes in the fat cheque on a salary every month of staggering proportions, while the troops run around scrapping a living with no security 24/7 and when they get burned out on a self employed basis, what do they get … nothing.  Far too many directors are not bothered if the fat cow dies while they are milking it for their own profit and no come back, often a big handout to get rid.
       
      Vic here today, gone tomorrow?

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    2. AgentQ73

      If they really do sell 77% of instructions then why is he looking to change the package for LPEs if the current one is working so well ?

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  16. Philip Norgan

    That should put an end to their LPE’s over-valuing and letting properties stagnate on the market.

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  17. J1

    This constant bashing of the biggest name in estate agency is neither amusing nor helpful – says someone who gives a monkey’s which I don’t.

    This firm has done nothing but drive down the standards of many in the profession, not only their competitors who have had to bring fees down but also the living standards of their LPE’s who are by all accounts not earning as promised.

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  18. GPL

     
    …..neither Amusing or Helpful?
     
    From my perspective …..I don’t get your point J1 ……but as you say “who gives a monkey”?
     
    As for “them” driving down the standards of others and competitors bringing down their fees? …….speak for yourself. I neither lower my professional standards or fees for any competitor/company. If that’s how one competes in this business, best advice is change career.
     
    LPE’s “Living Standards” ……why would I and most likely many “others” care? LPE’s made the choice to work for “them”, so they can make the choice to leave “them”.
     
    FailingBRICKS is NOT a career move, it’s the equivalent of being a “shelf stacker”….. the mistake of any LPE is believing that they are in the same league as a genuine Estate Agent.
     
     

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    1. J1

      My failed attempt at being amusing sarcastic and ironic.
       
      Will go back to running my high fee low volume highly profitable agency then.

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  19. Hillofwad71

    Some of the original territory owners were lucky  to get prime spots putting them into a virtual “Amway” style ownership where they subdivided .They have become all too powerful

    Consequently they have been able to sit back  ,take a cut of the fee whilst others doing  all the heavy lifting  Furthermore putting  up a barrier to the aspirant LPEs wishing to expand etc

     

    Something has to give

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  20. Fayron

    Look online estate agency – houzeq

    https://m.houzeq.co.uk

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