Purplebricks says its the cost-effective alternative to traditional agents

Purplebricks has stepped up its ‘commisery’ campaign by issuing a press release claiming that it can save homeowners looking to sell their home money amid the cost-of-living crisis.

This claim made by the online agency comes despite the decision to increase its pricing and scrap its money back guarantee.

Property Industry Eye recently received credible information that suggests Purplebricks is to implement a substantial increase in its prices in the New Year.

EYE understands that earlier this month an ‘All Hands’ video call was made to staff around the country in which it was announced that from next February the price of the company’s Classic and Pro packages will be going up by a very large margin.

In the case of the higher pricing tier geographic areas which comprise London and most of the south-east of the country, the Classic, which currently costs £1,999 will rise to £2,999. The Pro package (which includes viewings) will go from £2,499 to £3,999.

The lower tier pricing areas covering the rest of the country will also be going up by a similar proportion.

If confirmed the new pricing will mean that the Purplebricks offerings become financially on a par with full-service, no-sale no-fee agents on the high street.

Purplebricks is currently facing yet another bumpy period. Having just published its rather disappointing half year accounts last week, the board will on 19 December hold a general meeting to vote on resolutions to remove Paul Pindar as chairman and replace him with the ex-CEO of Countrywide, Harry Hill.

Tom Greenacre, MD of Purplebricks, said: “It’s understandable that people are nervous about the cost of selling their home and moving house given the cost-of-living crisis – but they don’t have to be.

“Buying a new home in a cheaper area or downsizing where children may have left home, for example, might leave you better off. And listing now, or very early in the New Year, could mean that you beat the crowd.”

 

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6 Comments

  1. ARealEstateAgent

    To clarify, they get paid up to £3,999 whether they sell the property or not. Please can someone tell me how it’s ‘Cost effective’?

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  2. Robert_May

    I really don’t follow the logic in this

     

     

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  3. Barnabus

    We all have access to the data showing how many PB properties actually sell/complete in our areas, all I see is the number of poor souls that get suckered in and end up paying for a result that wasn’t achieved, a number which will rise further in 2023. If their main operational change is to charge these poor people even more for disappointment and **** service then surely their days are numbered. Closer to a large scale scam than an estate agency for me.

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  4. Diogenes

    It’s taken them a long time and millions of pounds of other people’s money to realise what we all know – cheap agents go bust.

    A 50% increase in their standard package destroys their only USP – that of being cheap, especially in the north.

    Their lettings business is on it’s knees, the part of an agents business which is the main asset.

    When people finally realise (and astonishingly many don’t) that they will be asked for £3000 up front regardless of a sale (especially during a cost of living crisis) rather than a fee from proceeds of sale, this plan will fall on it’s face.

     

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  5. Woodentop

    What an own goal. The high street agents will wipe the floor with customers who will soon realise they are not getting any real benefit going to an ‘on-line only’ that does not contribute to its local economy and is no longer the cheap, cheap option. The cheap option was primarily why customers use them  and their slogan of ‘commissary’ has certainly turned into ‘Conmissary’. Too late in the game to start hiking up fees to try an save their business, the market is going to go towards recession and high street agents will have no difficulty in turning the tables in what will become a very competitive market and handed them a gift to counter PB as a valid competitor.

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  6. Russell121

    So now more expensive then most high street agents, less service and pay whether you sell or not. There demise will hopefully come quick.

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