Purplebricks has put up its prices.
The online agent has raised its prices from £849 to £899 outside London and in London from £1,299 to £1,399.
Viewing costs in London have risen from £300 to £399.
A Purplebricks spokesperson told us: “This is our first price change in over two years and it will allow us to further invest in exceptional experiences for our customers.
“As the market leader and most positively reviewed estate agent, Purplebricks is committed to offering customers a better service and a commission-free choice.
“We carefully consider any change in fees and we’re confident that the substantial savings and professional, personal service Purplebricks offers continue to represent the best value for money in estate agency.
“Today’s EA league tables confirm that customers agree.”
The new league tables were quoted by EYE on Friday:
Purplebricks ‘easily biggest agent brand in UK in terms of listings’, claim new league tables
Comments (24)
The most positively reviewed agent, my ****! Look at the real reviews on AllAgents. Trustpilot have lost all their credibility BECAUSE of PurpleTricks. What a crooked company!
So to conclude £899 plus deferred payment fee of £360 plus viewing fee of £300 whether they have any viewings or not = £1,553 and do not need to even complete on a transaction for the vast majority of the UK.
If they do not complete, users are likely to have to pay two estate agency fees.
The average price of a property for 2/3 of the UK is £180,00 x 1% = £1,800 less this £1,553 = £247 more for a 100% chance of completion?
So a coin flip saves £247 if successful?
I’m not a betting man but this saving far exceeds the risk when presented transparently?
Or that coin flip costs you 15 months plus £348,000 worth of reductions, so far – https://www.zoopla.co.uk/for-sale/details/44459458
and as Chris correctly says, if they disappear, so does the vendors cash……..
this really is a scam to be avoided.
The market has not reacted well to this news – the share price has dropped 7.25%.
If your USP is to charge an up front fee, regardless of the outcome of whether a sale is actually achieved and that fee is in line or more than a no sale, no fee level, then what is your USP? Your 5* Trustpilot rating? Well gee-whiz.
What happens if I pay my estate agent upfront and they stop trading before selling my house? How do I get a refund?
You don’t, I’m afraid
People who list with these failed estate agents (LPE’s) must be mad or easily led by ‘salesmen’. It’s crazy to think that just paying a few hundred quid less in fees will make the transaction better/easier. Those who are proper estate agents and have had the misfortune of being involved in a chain with PB, they will soon come to realise they have no clue what they are doing and the most important part of the sale is left to completely inexperienced call centre staff.
PB has done what it was designed to do….make the two idiots that set it up an awful lot of money. Job done, now close down this awful machine that does not work and creates more harm in the industry than it does good.
Agree with the comment above regarding similarities to PPI – let’s hope they get their comeuppance soon!
Not all LPE’s are failed estate agents and you can call the Bruce brothers a lot of things but idiots isn’t one of them.
wardy you are right … double glazing and car salesman comes to mind.
You can fool all of the people some of the time, some of the people all,of the time, but you can’t fool all of the people all of the time.They will eventually fail, when all their chickens come home to roost.
A spokesperson said pretty much what we expect them to say.
It’s not the presence of the words that is significant, but rather the voice that those words carry forward that matter.
Written to include as many SEO keywords as possible (exceptional service, market leader, most positive reviews, better service, commission -free choice, best value), with supporting ‘proof’ of irrelevant league tables, their voice screams ‘we are bigger, better and cheaper. But other than that, we’re just another estate agency that doesn’t feel bad at charging vendors for a mediocre service ‘
Not so much defending their price hike, as gaining a few more column inches.
From the PB latest Annual Report published Sept 18 CEO Mr Michael Bruce says :-
– “No 1 at selling houses: 81% of listings sold (completed, exchanged or SSTC) within 12 months to April 2018 ”
Source : https://pbinvestmedia.s3.amazonaws.com/uploads/presentation/media_url/113/Annual_Report_2018_200918-_web_version.pdf
Page 13.
PB trading update ” inline with expectations but we’ve banged our fees up so we will definitely make a profit next year. Any chance of some more investment please.”
Exactly, if they were making money they would be pushing for market share.
All is not well, so they are desperately trying to produce a real profit in the UK.
“Why am I paying more to list my home than last year, when your investment schpiel talks of lowered costs. Your previous CEO said I had an 88% chance of selling (completing) but, your current CEO says that’s 88% or so including stcs’ Which isn’t quite the same. Are the wheels coming off and you just need to rake in some more upfront money from gullible punters?”
When, oh when, will these folk understand that it’s not all about the money? Read forums, reviews and other publications and the main gripe is the lack of contact, service and effort; often ultimately the lack of a sale! I read from everything that I see that the customer still wants service, not a password to go on a website and see how many people have picked up details online, not a few words of feedback. What they want is to understand that their agent cares and has an interest in them and in selling their property, that conversation is just so important ! Given the number of properties sold and therefore the number of fees paid based on “success! “, how many agents receive complaints about the cost? Go on most review sites and I think you’ll find very few issues over the cost once the job’s done.
Easily the biggest Agent in our town has just closed an office – lots of stock + very low fees = no profit
The same rules apply to onliners except that the public are now learning:
They are not very good
Their solicitors are poor
There is little or no help post sale agreed
They are not that cheap
Oh and it’s a bit of a con some of the time (when things are not explained)
and just being on Rightmove doesn’t sell houses
I have zero sympathy for people who use PurpleBricks. All I say is ‘good luck’.
I think thats a bit harsh. I have come across many people who thought they were no sale no fee, it wasnt explained to them by the LPE that they had the pay regardless of success. Also pretty much everyone has told me that the credit agreement (deferred payment option) was not explained at all.
People just think they are a cheap estate agent, they dont realise that they are paying their £1500 odd just to shove the property on Rightmove.
So to confirm, if you list with Purplebricks, pay deferred payment, dont use their solicitors and take the viewing option, you pay £1549…all on the basis that roughly 50% of the time (according to Jeffries) they wont sell your home??
The 50% failure rate was also confirmed by Quirk in his interview last week…
Works 100% of the time 50% of the time. 😉
we shouldn’t be having this conversation because bricks shouldn’t even exist. It will be illegal soon . And hopeully bricks will have to pay it all back like PPI