The chief executive of Australia’s largest network of independent agents has claimed that the arrival of Purplebricks in Australia has failed to ignite consumer interest and that the company is on track to replicate the ‘significant losses’ incurred on its home soil.
The press release put out by First National Real Estate quotes its chief executive Ray Ellis as saying: “Since its August 2016 launch, when more than a quarter of a million properties were listed for sale with Australian agents, Purplebricks has sold little more than 150 properties and currently has just 310 properties listed.
“By any measure, that represents a rejection of its ‘low cost’ model and a market share smaller than 0.1%.”
The press release continues: “Purplebricks claims to be the third biggest agent in Britain by client instructions with a market share of 5%, but in September the ABC’s Media Watch reported just one in four UK customers give it a rating of one star out of five on its Facebook page. In contrast, 82% of First National member agents in Australia achieve 5-star reviews.
“Australians have an entirely different view of property ownership and are focused on building wealth through property investment.
“They understand the extra value that a professional agent brings the marketing, negotiation and sale of property, and therefore continue to choose agents to maximise their sale price.
“In 2016, Canstar Blue researched customer experiences with Australia’s major real real estate brands and announced that First National Real Estate was number one with the most satisfied customers. It was the only brand to achieve 5-star ratings, doing so in six separate categories, one of which incorporated value for money.”
Seems the Aussies know a pile of dag when they see it…
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http://www.realestatebusiness.com.au/breaking-news/11288-purplebricks-no-threat-panos?utm_source=RealEstateBusiness&utm_campaign=08_11_16&utm_medium=email&utm_content=1
A comment by Tom Panos a lproperty personality in Oz in November
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The more crictics Purplebricks has, the bigger they grow and will continue to do so.
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Obi Wan Kenobi running the show now is he?
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With a sector market share falling in the UK, that statement is factually incorrect. Call-centre agents had variously predicted a 10-15% market share by 2017 and last year were claiming (without any verification) a market share of between 5 and 6%. The current market share of the sector is sub 4%. None of the call-centre model agents have made a penny of profit and the jury is out on whether they ever will. We are now in a property market where volumes are contracting in double figures, requiring even more massive spend by the sector just to maintain a shrinking market share. By any measure, that is not a growing sector.
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It’s a shame we do not have people in a similar position in the UK that will say such things.
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Somebody high up at AM perhaps??? Maybe they could start with a few articles on PIE!!
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Without wishing to give Ros’ and Nick kittens again. I have and will continue to do so, no matter the attempts to intimidate me with emails from Schillings.
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Chris,
Intimidation and presumably threats Chris? what about? Maybe its time for a few more of us to stand up and close ranks against bullying!!!
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So a COMPETITOR of Purplebricks claims that its not doing well. Riiiight.
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Even PB have not come out and said they have made a single penny in profit.
Any idiot can spend money. They are currently buying a market (at a loss).
They are spending millions every month.
Going into a tighter market why are people going to sign up to an option where they must pay circa 1k no matter what.
The properties that do come on the market with PB in my area do not sell through PB they are taken on by proper estate agents and then sold.
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I think you’ll find the point of the story is that PB are not giving them any competition,
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Considering they are better, they would. Isn’t it PB that is always slagging off agents to get business Its the only way they seem to be able to get business.
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And their professional body says and does nothing….even though its one member against the majority of other members.
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Bricks SP has reached a new high today transcending the 200p barrier Thee market valuing the company at a very bullish £500m +. I am in the top part of the queue to criticse Bricks but it looks like the new TV ad has had a positive effect with instructions increasing over the last 3 weeks and February kicking off well irrespective of portal juggling
Instructions expensively won granted and maybe only a temporary boost
Still unlikley to hit target of 41k instructions for the financial year the revised figure forecasted in the Autumn report by Hardmans
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Had we not discovered the other day that they were well below their break even targets?
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Yes they wont break with the Oz rollout and a close call in th UK unless they use an EBITDA anaylsis However Feb has kicked off well (but at what cost!! )with 350 newly added on Zoopla yesterday and before No doubt these include some recycled old chestnuts which Robert might be able to add something to So if that continues February looks like being a record month but expensively won with some primetime TV advertiisng but wont make up for the other months in H2
What is intersting there has been a slowdown in LPEs rollout ,Basically all lthe main areas have been allocated and the existing LPEs are farming out sub -areas to new recruits a bit like pyramid selling think Avon Ladies.Amway and ,Betterware !!!
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Listing is one thing, selling is another ….. and getting the right price.
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But still the adverts seem designed to make everyone think we are all the same, do everything the same as each other, and most of all ‘they’re all as bad as one another…..so why don’t we just choose the cheapest’.
The fact that one member of a professional organisation is allowed to ridicule and rubbish the businesses and offerings of many of it’s other members wouldn’t be allowed anywhere else…. I think it makes us all look unprofessional.
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According to GetAgent.co.uk they have only listed 12,307 properties in the past 6 months*.
Assuming these figures from GetAgent.co.uk are accurate and that Purplebricks’ announcement of a “record January” was indeed a record ‘good’ january, it is reasonable to suggest that an annualised figure using the last 6 months worth of figures is likely to give a more favourable result than the previous 6 months. Using this potentially more favorable way of annualising, it suggests that Purplebricks could, and I stress could, list just 24,614 properties; over 16,000 less instructions than required in the Hardmans report quoted by Hillofwad71 above.
Source: https://t.co/cVZ3SgCsNX
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That’s a huge discrepancy compared to projections….would love to know if that correlates with Robert’s figures, which I would imagine are the most accurate we have.
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Commisery …….. the pain you feel when you pay an upfront fee, and the company doesn’t sell your house……………
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#CONmisery (Verb) Kon-miz-urr-ee
Fairly self-explanatory name for that sinking feeling a disgruntled homeowner will experience when their home fails to sell having been hoiked up on a couple of portals and left to its’ own devices ‘cos “It’s all done online now, innit” – and they realise that the money they have paid/signed a Credit Agreement to pay in the coming weeks/months for what the Call-Centre Agent openly advertsed as “SELL YOUR HOME FOR £***” has bought them a goodly chunk of diddly squat and certainly not the three opening words of that claim.
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Actually that is a stupendous point…. if they claim ‘Sell your home for £xxxx’ and then don’t sell it…why should you have to still pay….surely on their part its a breach of contract!!!
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This week we see Purple ****** have listed a 2 bedroom semi for £190,000 (going rate £165,000 tops) and a 3 bedroom semi for £250,000 (no similar sale over £200,000).
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No viewings…..no chance of selling and follow through services….its far less work isn’t it ?……money for old rope. Wonder how many listing reps are tempted to do the same…because they get paid very little more for doing more work…..unrealistic price, photos, measurements…job done..onto the next fee!!!
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Also the real problem with this is that it is extremely damaging to the long term marketing of the property and it’s overall chances of generating a reasonable (let alone a very good) sale price. When it has to be reduced to generate interest, many potential buyers will be overlooking it…because they have already seen it many times, didn’t want to view because of the price….and are now wondering why it hasn’t sold when it’s been on the market for so long…thinking ‘there must be something wrong with it’… instead of the truth….the marketing advice in the first place was drastically wrong.
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TPO code of practice! But you cant complain, so they won’t take action.
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My apologies, I spelt Bricks with a ‘P’, instead of a ‘B’.
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Burple …….
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Don’t you just love the ex-countrywide chaps looking to buy up great independent agents with good established teams … and maybe their old firm to – The mega money behind them hasn’t invested in online as the next new thing –
Turning Point ?
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