Hybrid agent Purplebricks has started a new round of advertising on television after launching in several more regions.
Managing director Michael Bruce said: “We are continuing our programme of growth with a launch for across Anglia, Wales, the West and South-West, building towards being fully nationwide later this year.
“The success we have had so far has proved that our model works, with thousands of people choosing to engage with the brand, not only because we cost less but because the service from our local property experts has been remarkable and to some, unbelievable.
“Building on this success we are launching in these new regions where we will continue to challenge the traditional estate agency model that has been left untouched for too long.”
The firm says on its website that it charges £665 plus VAT, which it says would save sellers of a £190,000 property some £5,101. The firm also continues to emphasise its 24-hour availability. Yesterday, it had 1,635 properties listed, including those sold subject to contract, plus 304 rental properties including lets agreed.
The TV advert can be found here
We also gave Purplebricks the opportunity to reply to some of the posts that appeared below but which have since been deleted.
The company said: “It is entirely inaccurate and untrue that anyone influences an independent review of a customer.
“All reviews of Purplebricks that appear on TrustPilot are provided by real customers entirely independently of Purplebricks.
“Where any of our reviews have reference to (NAME) it is because of a policy of TrustPilot where, for a period, they took out reference to names of any employee and replaced it with (NAME). Once we had provided permission for our Local Property Experts names to be included in any review placed by a customer they have been thereafter included. Unfortunately the ones that were deleted whilst their policy was in place were not reinstated.
“At no time have we given a customer a template on what they should write as a review or influenced them to post any particular words or comments.
“We use TrustPilot because all of their reviews are independent and verified. If any one wishes to understand this policy further or requires additional verification please do contact TrustPilot directly.
Comments (31)
I listed my property with PurpleBricks in January of this year. Unfortunately within 19 days of listing I had a financial issue that was out of my control resulting in me no longer being able to sell. When I reported this to my agent and asked if I could remove my property from the market he informed me I was still liable to pay the full fee of over £850 despite being on the market for less than 3 weeks and completely contradicting my consumer rights. I was completely unaware of this clause but the agent simply told me I should have read through the terms and conditions and continued to become aggressive and rant at me leaving no room for response. When I did eventually reply to him that he had not given me any terms and conditions, paperwork of any kind or even explained this charge to me in any way, he became more aggressive towards me. I explained that he had simply talked me through the listing process and instructed me to tick certain boxes without disclosing that this was me agreeing to terms I knew nothing about. Yes I was naïve but I was under the impression I could trust this man as my agent, and that any kind of agreement would be brought to my attention and explained to me before signing or as they do it, ticking a box! This particular agent became even more aggressive when I stated I was going to seek advice from the ombudsman and finally laughed at me saying “read the terms and conditions you stupid b**ch!” before terminating the phone call. I was utterly floored by this display of unprofessional behaviour and blatant rudeness! I can not put into words my horror of this experience as I would never in a million years have expected this to happen or to come from a man who was so charismatic and helpful in the first instance we met. I can only warn future vendors to please read everything thoroughly and make sure you know your stuff when using this company to market your home. Also, check out other agents as they’re are plenty of online agents if that’s what you need, not to mention 90% of other agents do not charge you anything unless they actually sell your home no matter how long you are on the market with them. Don’t be fooled by the low cost either as other agents can offer similar deals and after all the added little charges that purplebricks put on, the cost is pretty much on par with most high street agents.
‘I am still not sure what EstateAgent.me is designed to do’ That is true and I have heard it a few times, hopefully next week though with the new pages uploaded and a new index page things will be much clearer.
They are great! If any of them are looking here I’d imagine they will be upping to Def Con Purple anytime now 😀
Budget models are here to stay, the sensible ones that operate locally doing the same as the high street agent and also embracing technology will be the winners.
But they don’t do the same as high street estate agents, they just SAY they do! But I’m interested Trevor what embracing technology actually means? We runs computerised software system, all of our buyers, sellers, landlords and tenants are on our database and that database is shared between our offices. We upload to RM and OTM and have the ability to send email bulletins round to customers based on any status criteria should we choose to. Vendors can log in to a secure server to review their viewings and see updates (despite being phoned as well). We send updates and communication through social media and videos including videos taken via drone through You Tube. However in addition to all of that we are located within easy reach of all of our customers, they can come in talk to us, we are driven by way of commission to ensure we get the best price and driven to see the sale through to completion or we don’t get paid. We have enough staff to ensure EVERY viewing can be accompanied and that every one of them has the local knowledge to know everything that a buyer should or would want to know about our area. We are there to contact after they have moved, we are there 5 years, 10 years, 20 years after they have moved and have moved some people 7 or 8 times. So do tell me Trevor, how is all of that not embracing technology and delivering a local service and while you are at it please do name just ONE internet only firm that offers the same!
That is service supplier speak for “those that buy my technology will have an advantage” If I am not mistaken Trevor has a something; a system or a product that he believes will benefit you if you sign up and operate his something. He will benefit, so will you.
100% Correct Robert, I believe my agents will have an advantage, take a trial and give it a test, I would welcome feedback. trevor@estateagent.me
RealAgent it sounds like you are embracing technology, a local agent to me in Emsworth left the local high street agency and started on his own, it did not take him long to become the leading agent and he was working from home at the time. There were 5 more agents also in Emsworth.
To save us having a look at your carefully copy written website Trevor how about facing the PIE audience with a public examination of your service. That will go two ways, as I am sure you realise, but having the strength of product to withstand scrutiny from the likes of Peebee, Smile Please and co will either demonstrate a very good understanding of the industry or it will save you thousands in wasted time and effort. Who are your competitors Trevor and do you have any association with Portal Person (Mr Milner?) who popped onto eye on the same day and same story as you?
Registering to login I get “Your login details are incorrect” I have done something wrong Trevor but the site isn’t telling me what. Cookie controls?
Hi Robert, yes I see you have created a vendor account. I would 100% welcome the feedback from members of this site. No association with anyone, all on my own here. Could this be done as a story so all feedback could be listed on PIE?
As it’s going to be feedback from Estate Agents I would want that tested rather than the free vendor account, the full sales and lettings management is what I want feedback for, this would be really appreciated.
That is a question for Ros and Nick, I am still not sure what EstateAgent.me is designed to do. From my experience this week Purplebricks could do you waving a magic wand over their staff and Estate Agenting them!
Im totally against budget models. They often lack valuation and negotiation skills and often COST CLIENT’s £HOUSANDS.
But what they have become is backable in the city by VC’s. As such their brands are getting out there and they have funds to gear websites seo and structures beyond average agents. With millions behind them they are growing.
The figure use to be banded at 5% of sales were private – this I predict will rise to 6% – 8% in the coming 2 years.
All said, technology changes and my prediction is that post 2 years most smaller budget models will have gone, leaving a few large ones. If agents can get their pitch and structures right then traditional agency based on negotiation skils, right valuing and practice can win the end game.
How many of their properties are from proceeds of crime? Whispers are that the government have noticed that web only portals are wide open to criminal abuse.
Any agent selling homes needs to be registered for anti money laundering under HMRC be they online only or online + office.
They will always get lower offers than a local agent, even with their low fees the seller will end up with less money in their pocket. #FALSEECONOMIES
One of my current vendors called PB at 1am expecting an answerphone, but they answered registered her and said someone would get back to her, they didn’t, they didn’t the next two times she called them either. True story
I’d be wary of any of any vendor calling themselves PB!!!!!!!
PB was ok, it was the ‘at 1am’ surname that got me worried 🙂
Purblebricks do not staff their phones overnight and their Live chat is switched off too, they use an out of hours service (a bit like Moneypenny but not as good) I spoke to two such staff neither took a name or contact number. One insisted the only way to book a valuation appointment was through the Purplebricks web site, I pointed out the site does not allow me to choose a 6 am appointment as I would expect from a 24 hour Estate Agency service. Despite the adverts and claims on their website Purplebricks manage a maximum 14 hours out of 24 and the “everyone is a trained Estate Agent” is simply a false claim.
While I was sat there waiting for an email reply from the 24 hour staff, I crunched the numbers to run a Nationwide Estate Agency service; paying minimum wage 24 hours a day in the 3500 sales activity centres of the UK would cost £199.29 million annually. At £665 net they will need to list 299,000 properties each year just to pay minimum wage before costs and profit.
And the first number of local reps were self employed paid £300 per listing AND a basic salary. To be fair I remember when they launched and they were not expecting to make a profit for two years but I have to say at the fee they charge I can’t see them making a profit ever! I initially wondered if their game plan was to get market share and then increase the amount they charge but whilst some clients may be prepared to gamble £695 + Vat would they risk more, I think not. The only thing I would add is that the thought that collectively all these online agents could force a much larger market share to be divided hasn’t really materialised so soon they will be gunning for each other. I would argue emoove are already losing in that battle and Hatched must be desperate for a wealthy benefactor by now!
The reason I attempted Purplebricks was a recommendation and a TV ad. To stuff up winning an instruction from a referral backed up by a fee saving of £600 really is monumentally embarrassing for them especially given I as a vendor was both motivated and realistic on price.
Without doubt there will be a battle of Investors’ bank rolls with Easy bashing Carphone Warehouse bashing Swinton all big names trying to be big in a sector they don’t understand. Harry Hill soon dropped out of Easy once he was reminded of the cost of running an agency and turning in a profit, there was an article by the founder of Rightmove which pointed out below 1.25% profit wasn’t possible.. sorry the chap’s name escapes me!
OI! A guy can take the huff, you know… ;o)
I have just completed on a sale at £250,000 which Purplebricks ‘local expert’ valued at £325,000. I know the example is around the wrong way but it clearly shows the model is just about getting the houses on the books and not selling them.
We have just taken on another party from Purple Bricks in our area where a house that we could have had an offer on in an hour should we have been asked to, has in fact been on with PB for three weeks without success. The simple reason why is that they charge for the listing not the sale. Why would any client believe that an estate agent no paid on results would ever have any interest beyond getting their signature?!
Posting entirely as a member of the public, selling a property in one of their new target areas; based on the lack of service received from Purplebricks this week they already lost the opportunity of an instruction. The saving on selling my property through an AM agent would be, if a consideration (it isn’t), £660 not £4062 as Mr Bruce’s calculator would claim. His staff? Neither of the 2 people I spoke to were Estate Agency trained, could not help with advice on value or any aspect of selling my property. I am still waiting (two days) for a reply to an email! In that time I have instructed an agent (AM), done two viewings ( same applicant) received an acceptable offer and should instruct solicitors after the weekend once the applicants builder has had a look round at the weekend.
Ladies and Gentleman based on my experience of Purplebricks, free would be expensive!
How many ‘agents’ per square mile of area? I’ve got a team of 6 covering my sales & lettings patch of about 100 square miles. Some days that doesn’t feel enough. I think PB will have to find more than 24 hours in each day to actually deal with ‘business’. PS love to achieve even 1.3% on our patch!
A little early for mental arithmetic but it appears they are basing that “saving” on an average commission of 2.58%…seems a tad over the top when the average agency commission according to one reliable data set is actually around 1.3%.
“which it says would save sellers of a £190,000 property some £5,101.”… really ? how do they work that one out then ?
That’s not many properties IMO, especially with all the media coverage, they must be the largest now though I guess so good job guys.