Purplebricks.com, as predicted by Eye, duly launched over the weekend.
Yesterday, Mark Heneghan of Purplebricks tweeted a You Tube link, saying that the first TV adverts are scheduled.
Heneghan formerly worked for Romans.
You might be interested in taking a look round the site, not least because there is a page designed to pick up instructions from those with properties already on the market.
Forewarned, as they say, is at least fore-armed – just in case you should get an email from a seller who has 11 questions.
See here:
https://www.purplebricks.com/home/previewsurvey
The You Tube link is here:
Comments (34)
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There are so many claims on the Purple Bricks website which simply aren't true and am sure wouldn't hold up if challenged with the ASA. I simply haven't the time right now, but if anyone does, the comparison section against the "traditional estate agent" is a great one, where it seems a traditional estate agent doesn't do much at all according to Purple Bricks??
Owners can "Upload and edit photos"… I thought it was against CPR to "edit" photos and if calling yourself an estate agent, you must be taking your own photos to verify they are of the actual property, not take owners own photos??
"Our marketing attracts Millions of buyers & tenants every day"… Really, from day 1?
It all sounds too good to be true….
Morning All, don't seem to have the option to 'reply' directly to responses above?
PeeBee, actually, when you look at a long term picture, and the industry as a whole, I do believe the conventional wisdom of three valuations leads to one instruction, and you sell around half of what you list. Some of course are better than others, and location/competition makes a difference. Just as a for instance, whilst I had my own firm (just sales, and wound up in 2008, for hopefully obvious reasons) I had two offices, the one in the smaller community was the agent of choice, and I listed most of what I looked at, and we sold most of them, in the larger town, where there were 12 other agents, the stats were not so good. If I look back over my time as a whole, I'm inclined to accept the conventional wisdom as a good average. Although of course, during my time in the 'corporate' world, I listed everything and sold everything 😉
Wilko, you are of course absolutely correct in your assertion that their 'tick list' comparison is untrue, as any good agent should be providing all the services they highlight, but as explained above, on the specific point of 50% of fees earned funding all abortive work, they are probably fairly close. Just to temper it though, don't we all claim to do things better than our competitors? something not unique to this industry of course.
And Paul, there are lots of us have wished for a properly trained and regulated industry over a long period of time, but successive governments have seen more benefit in manipulating the market rather than regulating it, and I suspect that will continue to be the case. Are you really saying though, that other than a 'wish list' for improving standards, you really don't see any change in the way this business is conducted?
Enjoying this debate 🙂
Hello again, Hound.
"…on the specific point of 50% of fees earned funding all abortive work, they are probably fairly close."
Okay – you're gonna have to spoon-feed me this one, I think. But before that becomes necessary, I'm gonna try to disarm the argument. Bear with me…
Easy numbers for example's sake. I would suggest that ANY figure you care to insert will do the same.
You list 200 units. You sell 100. Each sale nets you £1000. Your income therefore is £100000. On that, you make £20000 profit. Your costs, therefore are £80000. On the basis of this 50% theory, £40000 pays for PRODUCTIVE business: £40000 for ABORTIVE.
So – EACH property – whether you sell it or not – costs you the same amount to service?
Your turn – arm yourself with a large enough spoon! ;o)
Hi PeeBee,
It's always difficult to be precise, as you'll well know, you can't just say a property costs X to market as there are so many variables, and to come up with exact figures would be extremely onerous, and of course, some properties will cost more to service than others.
The principal, of course, is that we don't sell everything we list, and therefore those that sell pay for those that don't, and I'm sure you're not going to disagree with that. I was hoping after his statement above, that Wilko was going to come up with some revolutionary way of meeting abortive costs, but alas, no 😉
Unless you analyse expenditure on every property in minute detail, the rest becomes a guess, but throughout my time in the industry, it's been widely accepted that over a period of time, an agent only sells around half of what they list, I first heard that in the early eighties as a new recruit to the industry, and have seen nothing in the intervening years to persuade me that it's not true. Again, the costs for each property would also average themselves out over a period of time.
I think I'm right in saying we've both been in this industry for a similar length of time, although in very different parts of the country, so are you suggesting that what has always been accepted as the norm here, i.e., Value three, list one, and sell about half is different in your part of the world?
Hi Hound.
I didn't say it WASN'T the "accepted norm".
I said I don't subscribe to it.
Set out to sell 50% of your stock and that's what you will be satisfied with. Job done. Target met. Box ticked.
WHY be satisfied with that? is what I say.
50% of your vendors WON'T BE.
I said at the top of this 'hilarious' and I think that sums up the claims made on the Purplebricks website.
The bit about 'traditional' doing a little bit after a sale is agreed just shows that this is a front end site – an advertising portal – nothing more. We all know (full service agents rather than 'traditional' as we can argue about what 'traditional' means) that full service agents earn their corn AFTER a sale is agreed. Unfortunately, the work that full service agents do after a sale is agreed is not observed by the clients in general. It is this area that the full service agents really should push to differentiate ourselves from the purely on-line/front end ad portals.
Vendors with Purplebricks will soon get fed up when Applicants, who have come off Facebook at 0300 hours in the morning and book an unqualified viewing for the following day, and the vendor takes the viewing only to realise the Applicant is not yet even on the market and needs to sell.
Worse, an on-line viewing is booked and then a few days later the house is burgled. What a great model.
It is fine comparing and contrasting different models – but when the prime USP is slagging others in the industry off, it will not work. It will fail.
Big fat Freddie Fail this one, I am afraid!
JM
Hound…
Where do I see the future?……Not to di-similar to now only with tighter regulation and in time a properly trained and regulated industry. This is what will offer a better service to the consumer, not moving to a serviced office and having an all singing all dancing website that you can call at 4am.
One thing I DO like is the "Search for an Expert" feature on their website.
They have NONE. Nowhere – even for their registered office postcode.
Bring.
It.
On.
;o)
Better tell them your postcode then PeeBee 😉
Nice find Pee Bee……or should I say "non find?"
Google seo today states that they are still waiting to launch?.
All these things smack of lack of attention to detail.
If they don't have any local experts how can their long list of fantastic testimonials on the site be true?…..More lies?
Paul, I suspect the NAEA will not have much to say about it! and in any case, the list of 'complaints' are things we all know happen in the industry, so in some respects are valid.
And TPS, worth considering that the 'ipad generation' are the future, although, of course, the ipad generation can't afford to get into the market, so it will be a long time before they become sellers, which may buy a bit more time for those with their heads buried and refusing to acknowledge that agency as we know it now could ever change!
I think for many agents it's not a case of having their heads buried in the sand and refusing to acknowledge that agency is changing. I have no problem in adapting my business model, if and when required, however, thus far I am yet to see a better model, for both the agent and the consumer. The current online model and certainly this purplebricks idea is taking the industry down the wrong road. It is asking the seller to become the agent, this is not the solution, and will in the end lead to disaster.
Go on then Paul, you've aroused my curiosity now, you acknowledge that agency will change, but say that online is taking the industry down the wrong road. Where do you see the future?
"you acknowledge that agency will change"…No, i've said that my head is not buried in the sand and that I will adapt, if and when required.I've got to say that I am fixaeted with your view that 'online' is everything and/or moving to a serviced office. Surely you value the other parts of the job too?!
Typo, i'll try again…."you acknowledge that agency will change"…No, i've said that my head is not buried in the sand and that I will adapt, if and when required.I've got to say that I am SURPRISED BY YOUR FIXATION with THE view that 'online' is everything and/or moving to a serviced office IS REQUIRED. Surely you value the other parts of the job too?!
I'm not sure that I've ever expressed the view that 'online is everything' but you have to consider the whole picture and the way our society has changed. When I first started in this industry, nearly 30 years ago, people wanted a reasonable size garden for little Jonny to kick a football around in, now they want a big bedroom for his kingsize telly and xbox, and of course, Mum and Dad don't even have to move from their settee to shop, do their banking, and browse for property. You only have to look at figures from the British Retail Consortium to see that for the past few years, high street footfall has consistently declined for a few years now and of course there has been a corresponding growth in online transactions, and across the country, local authorities are scratching their heads over the issue of high street regeneration. I've dealt with several enquiries this morning, but the only time the office door has opened was when I went out to do a couple of viewings!
However it works, agency will always be a people business as we are dealing for the most part with an emotive rather than a practical purchase or sale, and that 'local' factor will still be all important, but I do, on the evidence I see, question the real value of being on the high street, and watching what is going on is why I think more and more agents will operate from off high street locations.
Perhaps instead of waiting for things to change and then adapting 'if and when required' you may be best advised to look at what is going on around and actively plan for the future.
You ducked my question though Paul, and I'd be interested to see your thoughts, so I'll ask again, where do you see the future?
Its a real mess at the moment isnt it, all this talk about AM, Z and RM, purplebricks is really a glorified for sale by owner FSBO, but they are there if you need the help! RM should not even let them list.
Just had another look at this site and can't believe the reasons they give for a seller having to give them £600.00 plus vat upfront……
" •Most traditional estate agents now charge an upfront fee and call it a marketing fee (typically £300-£400) as well as an average commission of 1.8%. We do not charge any commission."
Is it just me or is this statement factually untrue on all levels?
Also they claim that 50% of the "traditional" agency fee funds property that doesn't sell.-again can't be true!
Surely these claims cannot be proved….I don't grudge any company trying to start up but not with lies. Surely not only the NAEA need to investigate but also trading standards as these, in my view, are simply untrue and misleading statements.
Would help make my mind up which portal to drop at the end of the year if RM or Zoopla were to make a stand and not allow these "agents" that don't like agents to use their sites.
Not sure that it is 'most' charging an up front marketing fee, but it is certainly becoming more common.
I'm assuming from your comment that you are operating on a no sale-no fee basis, so if it's not your successful sellers that fund your abortive costs, I'd be interested to know what does? Forget what's happening right this minute, where most of what you list is flying out the door, and consider the longer term, most agents list about a third of properties they look at, and sell around half of what they list, so actually, the 50% may be underestimated!
Yes I still practice no sale no fee. Am I in the minority now?
How about these as well…..What Purplebricks DO and "traditional agents" DO NOT do;
Traditional agents DO NOT;
Have a dedicated local property expert.!!
Offer post sale support from a specialist advisor.!!
Offer honest, open and straightford advice.!!
Offer no conflict of interest.!!
Offer fair or transparent pricing.!!
The list goes on…….How many agents out there do NOT offer the above?????
Like I said I've not got any gripes with new guys starting up but this is peddling downright lies against other agents – and that is never acceptable in my view.
No, I don't think you're in the minority Wilko, as I said above, I'm not sure that is 'most' charging up front.
You didn't answer my question though, if you think their statement that 50% of the fee funds property that doesn't sell, how do you fund your abortive costs?
Hi Hound
Of course, 'abortives' are paid for by successes.
But do YOU believe that 50% of a Sale Fee goes to recoup those abortive costs?
I certainly don't subscribe to that theory – and would go as far as to say that if that particular cap fits ANY Agent out there – then they shouldn't be in business. In fact, I seriously wonder how they CAN BE in business if it were the case.
Maybe there are Agents who work, thanks to the good old "Numbers Game" malarkey, on the basis that in order to get ten paid Fees you need to be instructed on twenty properties – but that still doesn't compute to the 50:50 that these numpties are trying to convince the public be the norm.
But, then, it may have been the way they stocked their own shelves that they are relating back to.
Now THAT would explain a lot – wouldn't it? ;o)
If I am not in the minority then we both agree that Purplebricks claim that most agents charge between £300 and £400 is lies?
With regard to the question of Abbos being paid for by sales then, yes, that is part of our business model…..but 50% , I feel, is just a number plucked out of thin air and therfore more lies.
What about the other claims I pointed out from their homepage? Surely you agree that they are made up lies as well.
I am not anti online as I've said many times, and I too recognise the need for change, and am adapting, but any company in any industry is bound by fair trading legislation and I do not believe their claims to the public to be true, to the detriment of proffessional agents.
To: Any Customer
From: Proffesional Agent
Re: Puplebricks e mail survey response.
What a great proposition…..sounds like you get to deal directly with the viewers 24/7.
Deal with your own offers 24/7
Tie up your own deal 24/7
Run your own chain of sales 24/7.
And pay Purplebricks for the privelage!!!!
No fear at all from this business model. It falls well short of sellers minimum service expectations….online or not!
Spot on…
Can you imgine…no buyer qualification, no control with solicitors/conveyancing/no sales progression. Buyer and seller in direct contact with each other (always works out well…) viewings being booked direct… the list goes on.
In reality, there is every chance that the ipad generation will have different views on what they expect as far as the process is concerned but surely the basics of fundamental transparency will still form an integral part of the process.
As someone said to me the other day "2014 is going to be a very shouty year…" I make him right but it will be interested to see the outcome. Who knows, maybe PB and the others on the horizon will actually help illustrate that we are , actually, not that bad and work ****** hard.
Purplebricks appear to pass the buck over to the consumer even more then the current lot.
Truth is, you take out all the tv adverts and the nicely designed website and it is precisely the same service offered by Emoov, housenetwork and the rest. Slagging off traditional agency to gain instructions by stating you only need to be on Rightmove, Zoopla etc to sell or rent a property and that all agents are like bankers trying to take your money for nothing. There is nothing innovative about this company other then they take an offer at 3am in the morning!
Have you seen this bit….
https://www.purplebricks.com/blog/blogPost2
Would be interesting to hear what the NAEA think about it considering that purplebricks are members.
Just had a read……very poor.
They are happy to call themselves a 24 hr Estate Agent but have a blog and sales pitch that tells people reasons not to use estate agents and reasons why the nation dislikes them….bizarre really.
The proposition, like so many before, seems very badly thought out especially as no new company in any sector has suceeded by just having a go at established opposition.
The only way to be a success is to sell your own ideas and hope the public like them, rather than just slag off the exising agencies.You can't trade on any type of negativity, let alone start a new business on it.
Purplebricks are the first online agent to throw some serious money at it. No wonder they were asking for backers and they will be asking for more in six months once they realise how unrealistic their projections are.
Apparently Prince is interested in putting some cash in when the money runs out.
Hilarious!