Sellers who used an online or hybrid estate agent last year saved themselves £140m by opting not to pay high street fees.
The claim this morning has come from Purplebricks, which says that the saving represented a 60% rise on the year before.
Its own customers, says Purplebricks, saved over £100m last year by using its fixed fee model “rather than paying much larger average high street commission rates”.
Purplebricks latest savings figure was compiled from data published by the HomeOwners Alliance and Land Registry.
It also says that despite commission rates falling, high street agents are still billing an average of £3,350.
Its latest savings figure claim is based on high street agents charging an average fee of 1.5%.
This figure comes from a survey of 2,000 Purplebricks customers in December who were asked if they received a quote to sell their property from a high street agent, and if so, how much they were quoted.
Purplebricks says that growing competition from online/hybrid agents has forced high street firms to lower their commission rate from 2.16% (1.8% plus VAT) in 2014, according to Which?
It says this has represented a saving of £1bn to house sellers over the past four years.
Altogether last year 1,067,000 homes were sold in the UK at a total value of £235bn.
Purplebricks has produced statistics showing regions where it says vendors using online and hybrid agents saved most last year.
The greatest savings were in the south-east, and the least in Wales.
Lee Wainwright, UK CEO of Purplebricks, said: “It is no surprise that more and more people are turning to hybrid estate agents.
“The transparency, convenience and potential savings on hefty commission rates makes the decision a smart choice.
“The way that people buy and sell property has changed.
“People want the personal service of Local Property Experts in combination with great technology so they can transparently and conveniently interact and see everything that is happening 24/7.”
The data was prepared for Purplebricks by Paul Crosbie of PR and journalism firm Crosbie Communications, using research from the HomeOwners Alliance EstateAgents4Me comparison tool. https://ea4me.hoa.org.uk/
Replying on behalf of Purplebricks to an EYE question about the actual numbers of properties sold by online agents, Crosbie told us: “It is possible to work out the number of homes sold by online and hybrid agents within an acceptable margin of error by looking at existing reports and cross-referencing with the Land Registry sales figures.
“You would need to look at the vibrancy of the market in those areas over the past 12 months and concentrate on population spread over specific postcode areas. Otherwise it will be rather time-consuming.
“I was more concerned with percentages as these show a more general trend rather than specific figures which can go up and down depending on local market conditions.”
| Region | No. of homes sold 2017 | Average high street commission 2017 @1.5% | Total savings by vendors using online and hybrid agents 2017 |
| South east | 149,160 | £4,770 | £29.2m |
| South west | 103,000 | £3,680 | £14.1m |
| Wales | 47,454 | £2,240 | £4.0m |
| East England | 101,102 | £4,250 | £21.6m |
| Yorks and Humberside | 84,490 | £2,310 | £5.6m |
| London | 92,830 | £7,200 | £21.5m |
| Scotland | 102,850 | £2,150 | £7.4m |
| North east | 38,818 | £1,900 | £1.8m |
| North west | 113,720 | £2,300 | £ 9.1m |
| East midlands | 79,530 | £2,885 | £11.3m |
| West midlands | 85,204 | £2,770 | £14.1m |
Yes but two questions:
How much more would a full service agent have achieved on the sale price?
How many vendors who were forced to pay regardless remain unsold?
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Where do these guys get their figures from!!!! We are an High St estate agency and along with the other agents in our High St we have been charging £995 all in for as long as I can remember. Average £3350! That’s the problem Purplebricks have the money to say this sort of thing and get away with it. Yet if we put anything in a poster or ad that is regarded as wrong we are told to take it down straight away.
I have complained to the ASA about their television ad because it is misleading but nothing gets done.
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@Metcalfe_SBET is also mp for tech .
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Where do these guys get their figures from!!!! We are an High St estate agency and along with the other agents in our High St we have been charging £995 all in for as long as I can remember. Average £3350! That’s the problem Purplebricks have the money to say this sort of thing and get away with it. Yet if we put anything in a poster or ad that is regarded as wrong we are told to take it down straight away.
I have complained to the ASA about their television ad because it is misleading but nothing gets done. I have said this before and will keep on saying it until things change.
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Our agency operate in exactly the same way. I have also complained to ASA and they haven’t even responded. One rule for PB, who are allowed to get away with their trickery and another set of rules for everyone else.
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More Purple Haze.
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Did they take into account vendors who didn’t sell but still had too pay, vendors who paid an online failed to sell then paid a “high street” agent and vendors who paid way over the odds on solicitors fees ?
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Working on these numbers provided by PB, and basing their fee at £1499 (£849 + £300 viewing package + £350 penalty fee for deferred payment using clients own solicitor), and based on them selling only roughly half the properties they listed as has been reported previously and based on them listing 5000 a month….
Purplebricks vendors who didnt sell paid just under £100,000,000 more than if they had used a No Sale No Fee high street agent.
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Yes – Would they please also advise of the sum total of commissions, sorry, the lump sum of lolly (they don’t charge commission of course), they’ve raked in from sellers for whom they’ve failed to deliver the goods?
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A bloke round the corner is coming up to his two year anniversary of being on the market with PB. I’ll give him a knock and let him know, I’m sure he’ll be delighted?
Incidentally, I have thought of offering to buy him out of his contract but in reality he’s been priceless in gaining me instructions against bargain bucket estate agents. The For Sale board has been there so long that someone’s slapped a preservation order on it.
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NEVER choose an estate agent or a conveyancer based on how cheap they are. Obviously.
Powerful to see a cheap upfront fee, true – and cheap estate agents count on it….but…cheap for a reason.
Estate Agents secure best price – the number one goal. Go cheap, and good luck with that extra £10k – £50k – £100k.
Conveyancers – go cheap and don’t expect error free, your calls returned, moving this side of Christmas.
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And how much did sellers spend on getting NOTHING from Purplebricks?
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In isolation £140m is a big number, very headline grabbing, but for obvious reasons they omitted to say that for everyone who saved there was someone who didn’t sell and was therefore subsidising the lucky ones who did.
The thing they have also omitted is the undersell; how much the vendor didn’t achieve by relying on the randomness of reactive selling rather than focussed applicant management.
A forced sale price is about 10% below the optimum price achievable. By relying on the vagaries of who is looking at the internet and when they are looking, internet listing sales are reactive; the lister simply doesn’t know or have any control over that process. There is supply & demand but no effective competition, its an auction with one bidder. Effectively transfer of a property from one owner to another becomes a lottery.
10% of the average transaction price is £28,200 so if any one wants a balance to the headline: 59574 people saved £140m in agent fees, subsidised by 55880 who paid to list but didn’t sell. At £1034 average fee unsuccessful vendors will have wasted £57.8m. The claimed savings were offset by an undersell which I’d estimate to be about £1.68b!
Sorry forgot to big up the number by 4 and exaggerate a bit… In the past 4 years unsuccesful vendors have wasted close to £250million in listing fees. Half the people who go with internet listing firms end up paying 30% more than they need to to achieve a sale. Unneccesaily raising their selling costs from £3350 to £4400
They were saying?
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I couldn’t agree with this more…….have a look at the post I put below, which I was typing whilst you were posting this Robert.
Selling a property for the best price achieveable and negotiating the very best offer can often involve at least 20 to 30 man hours of work. Presenting a property the best it can be in the first place….maybe at least another 5 man hours. Then of course there is the follow through to completion, and all the work involved in that over a period of months.
In total a Full Service result can involve over 40 man hours of work….that is a full working week per property!
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Robert with his usual waffle
The consumer group analysed data from 10 leading online agents – including PurpleBricks, eMoov and YOPA – and found that online agents achieve 95.85% of the original asking price versus a national average of 95.69% from high street agents.
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95.85% of a forced sale valuation does not compare with 95.69% of market value.
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The question, Robert, is whether dom-boy is a plain, simple, common-or-garden troll…
…or an enlisted, employed or ‘other-benefit’ troll.
Answers, on a postcard, please…
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‘Forced sale Value’
This statement is about accurate as your, ‘Unbiased’ reviews, of your mythical 4 old year portal.
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‘Robert with his usual waffle’.
Guess what dompritch134? Most of us prefer his waffle to yours.
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I am posting under my own name in front of an audience that inevitably includes fully qualified “Red Book” valuers and industry suppliers who provide valuation software. Given the often strident, alpha male environment don’t you think I’d attract a put down from someone properly qualified to put me in my place? You’d at least think I’d attract more dislikes than I do if my posts are waffle or in anyway incorrect
Here’s a few questions for you; how many of the properties have you decorated and sold on were bought through Purplebricks?
Are you one of the exclusive buyers that are given apparent access to properties being sold 20-30% below open market value?
Given a forced sale price is normally about 90% of open market value what is the source of instructions being sold 10%- 20% below what could reasonably be achieved even in the most pressured circumstances?
Is protecting what would be a lucrative source of profit the motivation behind your often aggressive and obsessive attacks on anyone who doesn’t share your sycophantic opinion of Purplebricks
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I thought I would check back later as I know you often like to get your last word in when the comments have tailed off.
You have a clear agenda with your rhetoric and the partial releasing of your analysis! Cough cough where are the CWD LSL Connells completion stats?
Forced sales values are a subjective issue, if you look at the buy to let shop who have many off market deals with an immediate unconditional exchange, they can vary between 10 -30 % below open market.
How many houses have I decorated and sold? I have never decorated any of them, i purchase all kinds of investments.
My motivation is bringing a counter opinion to the obsessive rhetoric from the high street.
Maybe you can get one of your sycophants on twitter to make another UNBIASED review of your GAME CHANGING portal?
Anyhow I thought you were on a camper van adventure, re-living your youth maybe?
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ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ
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It’s not my analysis, I’m not the analyst; I have clean impartial data that analysts analyse. As far as I know Countrywide, LSL and Connells have not make public statement about their completion ratios that is not factually correct. It isn’t my job to anything more than provide the data requested. The executives of listed companies are not allowed to make up facts and statistics whenever they are on a back foot. When one does it is something that gets noticed, but not in a good way if the claims made turn out to be false.
The review of rummage4 came from someone who I have never met and only spoken to twice, hardly a sycophant! He understands the industry and the stakeholders and based his assessment on his experience. You not liking him liking what I have built and what I am achieving is now starting to come across as envy and that’s the commonality between you and Mr Lawson.
The personal insult stuff…. buying the right vehicle to do the right job isn’t something you should be commenting on it reinforces the blurty, remedial kid impression people have of you. I have a need to regularly be from one end of the country to the other and have bought something that allows me to do what public transport doesn’t. Who in their right mind would buy a Vito van over a CLS without a practical reason for doing so. Devon-Scotland-Southampton-London- Devon is 3 days work.
No-one knowingly sells any investment 20-30% below what its properly worth. Where are those listings coming from? Executors and Mortgagees in possession have obligations that aren’t being met if properties are being sold below market value so that can’t be it. Where are they coming from? There is nothing subjective about property valuation, legal precedent says so.
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“There is nothing subjective about property valuation, legal precedent says so.”
You’ve got to see the funny side of this, Robert!
You’ve just had to draw a picture of what a crack looks like…
…for someone who’s professing to have sat a Building Surveying course!
But I suppose “sat”, and “took it in” are two polar opposites.
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Is it not the case that a properties value is only what someone is prepared to pay for it?
Is it not the case that the purchasers value in the property comes from their own subjective opinion?
Is it not the case that 3 expert valuers can give an opinion with 15% variance from one another?, if so then then true value is what a buyer is prepared to pay. Subjective
Robert the completion stats for LSL Connells etc, you stated you have these, yet you refuse to release them.
I take issue when you preach about the supposed wrong doings of PB, yet you advertise UNBIASED reviews of your work, which clearly are anything but unbiased. You can’t have it both ways.
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I can’t see the funny side of properties being sold off 10-20% below forced sale valuation; someone is getting mugged off and a few people are profiteering, to any professional property agent that is abhorrent.
There’s lots of things I know that I don’t mention.
Supply and demand in property dictates the whole applicant register is allowed a chance to express an interest in purchasing a property not just an exclusive few who are looking to turn a profit.
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“Is it not the case that a properties value is only what someone is prepared to pay for it?”
Just as well you gave up the half-@rsed attempt at being an Estate Agent at 20, dom-boy…
…you’d have been a complete jellyfish by 21.
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“Cough cough where are the CWD LSL Connells completion stats?”
Have a look at your #Purple_Pals’ 2017 Results Presentation, dom-boy. Page 22, to be precise.
THEY managed to find them so I don’t see why YOU are having such a mahoosive problem – especially with your #fanboy fascination of all things #Purple.
I’d have thought that you could recite that entire document verbatim.
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Carried out over 40 viewings on a property over the weekend…..and have already had a good few offers in.
If I was a paid up front Call Centre Lister I would just be telling the owner now to take one of those offers…..job done, because anything else would be more work for no extra reward. I would want to be earning my next up front fees.
However I won’t be encouraging my vendor to accept one of the offers so far. Why? Because I still have another 40 people who want to see the property….and I know doing all those extra viewings will add at least another £5,000 to £10,000 to the final sale price achieved. That will more than cover my whole fee.
No one ever assesses the sale prices achieved by a good Full Service Agent and I don’t mean a pathetic percentage of asking price achieved…..generalised for the country.
I am sure that everyone that uses our service gets the best end ‘walk away’ result (sale price less fee). Plus they get a full follow through service, and only pay on final completion.
I am also sure this is true of many good Full Service Agents throughout the country!!!
BSOS23PC
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Must of being under valued in the first place with 40 viewings
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I don’t think it was Richard. In our area we have very few properties for sale and very high demand. Combine that with the right marketing price and very high quality representation to attract the most interest, and every capable buyer within the price range will come to view.
We regard that as providing the very best Full Service.
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seems to be the incorrect asking price was advised, poor from the appointed agent.
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You are wrong I am afraid dompritch134……exactly the right asking price was put on the property.
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If you would of correctly marketed the property at the right price you wouldn’t need to get to the situation you will have with sealed bids and no one really knowing where they are at.
im afraid this is a complete mess up by your firm.
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dompritch134
If you would of correctly marketed the property at the right price you wouldn’t need to get to the situation you will have with sealed bids and no one really knowing where they are at.im afraid this is a complete mess up by your firm.
Wrong again dompritch134……we very rarely use sealed bids as I know buyers don’t like them. I personally haven’t used it for years. However, if agents need to do it, it is a perfectly legitimate way.
I also fail to see how doing our most to get the very best sale price for our vendor is a ‘mess up’ by our firm.
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Hard to see why you failed as an agent SpectrumDom from that post.
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Not with 40 viewings , that what auctioneers do. I can’t believe you have time to type on here with all the calls you have to make
if you don’t Receive asking price or more will you be tell you customer to take the offer ?
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So the owner has at least three independent valuations carried out by local agents. He picks us, because he likes the exceptionally personal service we provide, and tells us what he wants to achieve based on the valuations he has had.
Together we agree a marketing price and using it we achieve offers above the figure he expects the first weekend.
Any other comments?
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This really is appauling advice and service by Agent V, no wonder he is finding things so tough.
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So what advice would a failed agent like you have given then?
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‘Failed Agent’? I was 20 buddy, and I went to university to study building surveying and project management, so try again.
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dompritch134
This really is appauling advice and service by Agent V, no wonder he is finding things so tough.
So giving the very best personal service and achieving the highest sale price possible for the owner is appalling service is it dompritch134. What do you call good service???
I am really very interested to know?
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How does ”dompritch134” even still have a job after replying on here all day/ every day? Great EA! can you come and sell my new homes for me please? I like agents being proactive on my behalf.
Oh wait!
You’re to busy posting on PIE, fool.
Well done Agent V.
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Jongo9493
Many thanks for your comment. Can I sell your new homes for you?
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Always looking for new oppurtinities, I like your thinking! However I am tied into a contract with an agent locally, but I would always give it a thought should they not perform to my likeing.
Is there a way to share contact detials without the rest of PIE seeing?
I normally watch and read of all the comments, however dumbo-dom needs putting back in his tiny box, I always see his stupid comments daily… which are mostly ignorant.
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Jongo9493
I can be contacted at;
in@agentv.co.uk
Thanks
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80 viewings?????
AgentV you are either not in this business at all or if you are you’re doing something wrong.
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Mr Lister
Are you calling me a liar? Why would you accuse me of not being in the business simply because I have 80 people interested in buying a new to market property? Do you never have the same? Are you not capable of generating that amount of interest on a popular property in a popular road? So please explain where in your opinion I am doing something wrong?
I would be very very interested to know!
How about this one then….last year I did not far off 140 viewings on a property, resulting in nearly 70 offers, and eventually sold the property for over 20% above marketin price!
Now call me out a liar on that one!
BSOS23PC
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The consumer group analysed data from 10 leading online agents – including PurpleBricks, eMoov and YOPA – and found that online agents achieve 95.85% of the original asking price versus a national average of 95.69% from high street agents.
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Stupid statistics based on silly criteria…..like asking price.
The real thing every vendor wants to know is what they will get for their home, especially in comparison to what else has sold locally.
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Vendors who are willing to be charged up front (and have to pay whatever the result) are probably more motivated to accept a more realistic or lower asking price which will make sure they sell.
Many independent agents deal with owners who want to ‘try an asking price’ because they believe this will achieve a higher sale price for them. They may well then go on to sell at the realistic price due to the experience, guidance and skill of the Full Service agent.
This is one simple way the figures can be skewed……but I doubt the sample was large enough to give a full picture anyway.
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Must have***
Please don’t post on here Richard247 if you can’t get the basics of English correct.
JPS
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Also dompritch, IF YOU WOULD HAVE ***
GOD DAMMIT. BASICS
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He went to University I’ll have you know! ‘Building surveying and project management’. Sounds more like a poly course IMHO. Sure he’ll put me right by naming it.
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Would love to chat with you guys more but my tee of is in 15 mins, have a great day.
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Tee off**
I hope your golf is better than your English.
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try using a smartphone auto correct, smart ass
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Trolling in the morning, golfing in the afternoon, trolling in the evening – just a typical day then.
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‘If you would have’ I apologise.
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A ‘smartphone’
Not really living up to the name?
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>If I was a paid up front Call Centre Lister I would just be telling the owner now to take one of those offers…..job done, because anything else would be more work for no extra reward.
That really is an appalling attitude. I presume the same applies when you are selling average and below average priced properties. If the extra you can earn doesn’t justify the effort you recommend the seller accepts the offer. You put more effort in the higher the price of the property because you earn more.
>In our area we have very few properties for sale and very high demand.
So your point is only valid when there is a very high demand? It is only in these circumstances when you can achieve a higher price? PurpleBricks & the vendor themselves are completely oblivious to this high demand and just sell on the first offer which will be 10% below what you achieve on every single property?
I’ve sold quite a few properties and no agent has ever told me to wait for a higher offer. Always had to reduce from the asking price suggested and I generally haven’t gone with the highest valuation from multiple quotes.
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ZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZZ
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cyberduck46
That really is an appalling attitude. I presume the same applies when you are selling average and below average priced properties. If the extra you can earn doesn’t justify the effort you recommend the seller accepts the offer. You put more effort in the higher the price of the property because you earn more.
Sorry Cyberduck, but the answer to your question is that I try and achieve the very best sale price for every property I sell…..and for each and every one I put in the maximum time and effort I can to achieve this. However I simply fail to see why someone who has been paid £250 up front for say ten hours work, and has achieved a result that might be accepted, would then put in another ten man hours for no extra money. It seems to me to go against much of human nature….to work harder and longer and earn less money.
I’ve sold quite a few properties and no agent has ever told me to wait for a higher offer. Always had to reduce from the asking price suggested and I generally haven’t gone with the highest valuation from multiple quotes.
But then you have never used me or another Full Sevice Indepependent agent who cares as much as I do about what they do, have you?
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AgentV
When was the last time you agreed a sale at NINETY SEVEN THOUSAND POUNDS BELOW the original Asking Price?
(Asking for a feathered fwiend…)
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PeeBee
AgentV
When was the last time you agreed a sale at NINETY SEVEN THOUSAND POUNDS BELOW the original Asking Price?
(Asking for a feathered fwiend…)
In answer to your question, if I had a vendor that this happened to, I would be ashamed at the valuation I had made in the first place. I know that in a relatively good market, like it has been for the last three years, most owners will get their very best offers within a month……unless overpricing or bad marketing deters potential buyers.
I believe the longer a property is up for sale, the less the sale price achieved will be relatively, as interest depreciates (proved by rightmove stats) and buyers start to ignore a property that has been on the market for a long time, believing there is something wrong with it.
There is of course an exception to this when a rising market ‘catches a property marketing price up’………but in the meantime everything else the owner might want to buy has gone up.
In my view dropping a marketing price many times over a long period of time indicates terrible initial advice and is a very very poor way to sell any property…..and each week a property is not sold, in a good market, diminishes the best chance of getting a really good sale price!!!
BSOS23PC
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Definition of panic? This post.
How much did Purple Bricks save all of those who listed, paid and did not sell? Hence, a loss!
How much more of a Best Price would the vendor achieve through proactive traditional estate agency? Hence, a loss!
I heard their most recent radio advert at the weekend. They save money because they do not have high street office costs. We sold a significant number of our homes last year via direct in- branch face to face contact with customers. PB do not have this, hence cannot have the widest audience, so a loss re: Best Price.
PB have attracted customers referred to as innovators. They need innovators plus early adopters, and between 15 and 18% market share as a tipping point.
It is NOT going to happen, hence this type of post and their share price. Investors beware!
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Yep, they’re doing so well they are trying to get in with the mumsnet lot and failing catastrophically badly.
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Just in case you missed Friday’s thread on here, the link is below; 35 comments so far. Judge for yourself just how well they are doing with the initiative:
https://www.mumsnet.com/Talk/mumsnet_product_tests/3219453-Looking-to-sell-your-home-Sign-up-to-sell-it-for-free-with-Purplebricks
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This will give me something to laugh at during the occasional down time today.
There is going to be a lot nonsense on both sides of the debate!
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Lies, Damned lies and statistics?
What % of what you take money to list do you sell PB?
Where you have a huge benefit of perpetuating a mirage and that you are the champion of the consumer when the reality is, you are (as we know no different) a 50/50 gamble, you will continually attract the ire of those you seek to take business from. PB could, at a stroke, remove the feeling of those traditional agents that unfair means are being used by ‘coming clean’ about how many property sales complete using their platform. So; come on PB, be honest!?!? Isn’t it about time you were?
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As the naysayers are breathing their fire and brimstone let me remind you.
Online agents achieve a higher % than the average high street agent.
The consumer group analysed data from 10 leading online agents – including PurpleBricks, eMoov and YOPA – and found that online agents achieve 95.85% of the original asking price versus a national average of 95.69% from high street agents.
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The best test would be 10 best online agents versus 10 best High Street Agents.
Out of interest which consumer group done this survey?
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PPITE
It was the HomeOwners Alliance, who trade under the guise of “consumer group”.
Flawed information from a flawed source using fatally flawed data.
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dom-boy – you’re repeating yourself. “First signs” and all that…
Unfortunately for you – you’re also repeating complete, unsubstantiated b0ll0cks.
Keep it up, chum.
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Could that simply be a sign that PB’s initial asking prices are lower?
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Purple Tricks, No movement, Not Simple, are glorified For Sale By Owner advertising sites.
If I was doing everything myself I would also I want to save money.
In the real world educated people know, in order to get results you have to employ the best talent.
That’s why talented and experienced Estate Agents can still charge for their time and get paid and this will continue, as people want to do business with real people not a PC.
Purple Tricks needs this headline grabbing propaganda every now and again to bolster share prices.
These FSBO sites are doing a fantasic job of disrupting themselves. Keep it up.
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More PB propaganda. Again they show figures that are a distortion. Yes some agents do charge more but their business is totally different to the “advertise only service offered by PB” with nothing like the overheads. One could say that they over charge for the little service they provide in comparison and of course there is that fee for failure!
There is another flip side to this story. PB, if they have their way will contribute to more empty shops on the high street, more people out of work, less ancillary suppliers, degrading of the level of service to the public, more people out of employment means less revenue to the country (actually a drain on already stretched financial resources) which then leads to less tax being paid = less money for the treasury for schools, NHS and policing budgets. The public must realises they can’t have their cake with cheap fees, and eat it!
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I agree….and at the expense of small family supporting businesses, already rich people will get more, even though they already have more than most people could spend in a hundred lifetimes.
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PurpleTricks indeed……. unfortunately the unsuspecting, wet behind the ears Vendors that fall for this illusion are the ones I feel sorry for.
It’s a disgrace that the ASA allow PurpleTricks to continue with their ‘pull the wool over your eyes’ adverts that are continuing to mislead people into parting with money up front for advertising/selling (or not for 50%) what is…to most of us….. their biggest asset.
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What the story misses saying is that as a sound business, it is a massive failure. Approaching £100m and still to make any profit without the constant investment from crowd funding …. which means their cheap fee actually isn’t a going concern to survive and tittering on the precipice of insolvency if the investors stop. They would have to incease fees …. oh dear they would be charging the same, if not more than the high street for less service … end in sight!
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PB are to bring out no sale no fee next month starting at £2500
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Is this a joke or do you have reliable information/link? Maybe we should ask PB’s ‘Chemical Ali’, he’s contributing to this thread in his usual manner.
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I guess £2,500 is inside information from a fan or worker. I think it is a very good indicator and reflection of the sale completion rate of the ‘pay whether you sell or not‘ model.
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Slightly surprised (as a supplier, not an agent) that the comments on Purplebricks always seem to focus on how rubbish they are rather than solutions to enable ‘conventional’ agents to fight back.
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To be fair, I don’t think that High Street agents need to ‘fight back’ as PB and the other ‘charge to list’ agents haven’t really got a significant enough market share anywhere yet for agents to be getting worried about them just yet.
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DonShore93
We are working on it…..new systems and software to help independents.
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I would love to know how much revenue has been made from upfront fees from those who didn’t sell. Essentially, “here is how much people wasted with Purplebricks.”
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If they ever – and I predict they never will – told us the actual % who paid and didn’t sell, we’d be able to work it out and, since they launched, we would see just how mahoooooosive a figure it would be.
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Purplebricks being upfront with data and not misleading? Impossible.
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Can we not just copy and paste the comments to any future PB article please Ros?
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For those who are posting in relation to PBs longstanding refusal to publish their Success Rate statistics, ‘Amy’ from PB posted this on 11 April in response to the question being asked of them on Twitter:
“We are currently looking into this at the moment but for now we do not have any further comments on this.”
Presumably because the previous comments, stating 88%… 78%… have been proved so catastrophically wrong they are finding new rugs to sweep those under – as all the other ones look like they are laid over termite mounds!
I’ll have a stab at predicting the future – that the next blarted out statistic will be 67%.
At least that way it will be getting closer to the stark reality…
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Number of LPE’s & LLE’s down from 745 to 725.
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Probably reducing as they are finding it hard to take the strain of doing the same work as real estate agents. 1 LPE to 76 high street staff in my area.
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Or the LBP (Lisenced Business Partners) are not making the money as expected, after petrol, corp tax, personal tax, rent, food, bills etc etc
Are they really making enough money? Their number of LLE’s and LPE’s has stuck around 720-750 for a long while now.
I think they have hit growth limit. Share price seems to be sticking now, even with the annoucement of further investment.
Interesting to see how the stock market reacts to the news of a fall in revenue, weather isn’t a good enough excuse when they are losing millions. ]
Also interesting to see if Axel stil go ahead with deal mid this month as SP seems to be failling low below their 3.60p buy in price.
Where did the 50 million go they had orignally when moving to the US? Madness.
Just to add, I don’t even bother reading the articles which headline ‘Purplebricks say this or do that etc’
It’s all a publicity stunt for investors, a good article filled with bullsh1t in Purplebricks favour can increase their share price, which is all they care about so the Bruce brothers and other directors can keep up their expensive lifestyles.
When you monitor the figures and progress, the only thing keeping them in the game is investors money and their share price. Nothing else. It’s very interesting to watch though.
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But how much have customers had to pay in HIGHER legal charges that they’re forced to pay by PB if they want the deferred option. Absolute cr@p.
Let’s get referral fees published! Shares will drop as they aren’t making money from selling houses – loans and legal fees are where they are ripping off consumers!
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O-KAAAYYYYY…
According to the article above:
Purplebricks’ customers “saved over £100m last year”
High street agents fees are “an average of £3,350”
Elsewhere:
PurpleBricks average spend per customer is £1138 – Year-End Presentation
PurpleBricks ‘basic’ Fee is £1199 (London ‘Region’) / £849 (rest of UK) – PB website
Approx 15.5% of PurpleBricks’ listings register is marketed by the London’Region’ – Rightmove/PB website
SO
the “saving per customer” could be
£2212
or
£2446.75
or… pick a number, as many would think PurpleBricks have.
But based upon the above projections which are based upon figures the company have stated or there is evidence to suggest, the number of “customers” making the “savings” that add up to the “over £100m) should be in the region of
40871 and 45208.
That, of course, must be COMPLETED SALES. Sales agreed and administered by PurpleBricks.
Otherwise they haven’t “saved” A PENNY. Instead, they’ve actually spent money. For nothing.
They’ve spent money.
And here’s the thing. Their produced figures also throw up a couple of curve-balls for themselves.
Firstly, they last stated that they sell a property every 9 minutes, 27/7.
That would give an annualised total of 58429. Quite a hike from either of the above potential numbers of “customers” that their statistics lead you to assume, is it not?
They also stated in their 2017 End of Year Results Presentation that “based on annualised number of instructions received in April 2017” their annual transactions was listed as 66000.
That’s an even bigger hike – is it not?
Just saying…
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No mention of the vendors were left out of pocket because their homes didnt sell?
Or those that didn’t achieve the price a local professional would achieve?
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