Purplebricks has warned that it will not hesitate to act against agents who are using the ‘message seller’ button at the bottom of each property listing in order to try and poach customers.
Purplebricks was responding to Eye after we heard that some high street agents have been using the button to prospect for business.
This is despite the fact that they would have to register for the service as either ‘seller’, ‘landlord’, ‘buyer’ or ‘tenant’, give some details about themselves, and agree to abide by the terms and conditions.
One agent we spoke to confirmed using the ‘message seller’ facility to canvass sellers and win instructions.
The agent said he regarded its use as “inevitable” and “one way for the High Street to fight back”.
He said: “‘We have had great success being able to talk to these sellers directly and gain the opportunity to visit them for a valuation.”
The agent added: ‘It seems remarkable that Purplebricks would leave themselves exposed in this way, but while the opportunity is there we intend to take it.”
However, Purplebricks made very clear it will not tolerate the practice.
In a statement, the company said: “It has come to our attention that a small number of high street estate agents have been making unauthorised use of the Purplebricks’ online platform to make unsolicited approaches to the company’s customers for the purposes of selling in their own services.
“We, with our lawyers, are investigating all unauthorised use and unsolicited contact of customers and take this extremely seriously.
“In our view, such activity is poor practice and is a contravention of industry regulations, legislation and our terms and conditions of use of our platform.
“The matter is now in the hands of our lawyers.”
Comments (17)
“In our view, such activity is poor practice and is a contravention of industry regulations, legislation…”
Actually correct and justified comment.
IF ONLY it was made by a company that ever gives a fuppenny about said good practice, industry regulations and legislation…
I presume they dont mind you contacting the vendor direct as most of the time they have the commitment to part with money from the vendor. Its never no sale no fee, just give us your money and we’ll let you get on with it. Nearly any agents can sell your house, it’s the after service that really matters and proves the money spent is worth it.
PurpleBricks appear just an intermediary and perhaps need to review there overall approach to marketing rather than spending vendors money on lawyers.
I got sent an interesting post on MSE forums a couple of days ago, from someone trying to book a viewing with an online agent, I’ll track it down. Here it is:
http://forums.moneysavingexpert.com/showthread.php?t=5447624#topofpage
TLDR – they weren’t going to accompany the viewings, but a potential buyer had to agree not to ask certain questions before they were allowed to book a viewing. Very odd. Maybe related to poachers, maybe not.
I wonder what their lawyers have to say about telling potential customers and investors (pre IPO) that ALL of their ‘local experts’ were qualified estate agents, not to mention the rather regular and severe ‘technical issues’ that PurpleBricks seem beset with which means that none of their property listing figures can ever really be fully trusted?
OK So you can identify the property via RM but then you have to go to PB website to message the vendor directly. So are RM enabling PB to go down the private seller route or not?
If I was going to go to such low cunning as to message potential vendors I think I would set up a Hotmail (there are other free to use email accounts) and I would probably say things like we would like to view your house but left several messages with your agents but they haven’t replied. We sold our house through Floggit & sellit estate agents near you and they were really very good. Please call them for me to have a look at your house.
Or something to that effect !
Super idea!
There’s something very primary school playground about this; the naughty kid throws their weight about paying no regard for anyone but as soon as someone plays them at their own game they go blahing to the teacher. Boo Hoo Hoo!
Purplebricks need to decide if they are merely a cheap passive intermediary giving listings access to the portals or an Agent. An agent… the solicitors will explain!
Their lawyers will be happy to take the (money) case and then nobody will ever be prosecuted.
I doubt they would want to pay their lawyers upfront without any gaurntee of success, i mean, thats just a crazy way to go about things
oh, hang on….
Calling in the lawyers… I wonder what the anti-competition laws take on the whole situation is.
This is a very easy back door to prospecting.
If you have a system that relies on not speaking to customers, your business model open to be exposed by this.
And what a great way to promote this – Bring in lawyers.
So about 1% of the industry knew about the back door before today.
Now it’s open season.
But I’m not really sure what the problem is for Purple Bricks
– They get paid whether they sell or not
Purple brick may wish to use this time to also investigate with the lawyers they are using. As to where they stand, having purple brick boards on stock they don’t even have on their books.
Kill two birds with one stone so to speak
I know I always go on about this but… When I was listing on Rightmove with mypropertyforsale one of the rules enforced on me was that all contact initially had to be through me, not direct with the vendor. Don’t RM care anymore??
Who mentioned right move?
That’s true, sorry, I also wanted to add that direct contact is really a private sale isn’t it?
What a great idea, we must start doing this!
Thinking about it if every agent started doing it they would have to think carefully about having this option on their site and have to actually start dealing with their customers and staffing up to do so.
Not surprising on that basis they are trying to throw their weight around.
I’m surprised the word ‘lawyer’is in the vocabulary of purple bricks bosses.
Seems to be purple bricks can ‘morally do what they want’ but the moment it flips on them or is uproar.
Sounds like a good idea, personally we knock on their door but may use this for when it rains 🙂