Watchdog V Purple Bricks?

Well many people tuned into the BBC last week and looked at the BBC taking to task the owner of Purple Bricks.  In turn, many estate agents were jubilant in our beloved broadcaster exposing what we already know.  That you don’t get something for nothing and there’s no such thing as half price gold.

 

So, what are the choices for the consumer?  Well I always refer to the Purple bricks or in fact any online agent like going to a casino.    You take your fee, (Typically £849 in our area) and you place it on black.     Hopefully, the wheel spins the right way and you get the result you want.

 

Traditional estate agents, however take the gamble for you.  They take the risk and the costs of marketing your home, advertising, details and of course spending wage costs of staff accompanying viewings.   In the event of them failing to be successful or indeed you being one of the 25% unlucky clients where sales fall through, they earn nothing.    In return for this gamble, the fee you pay with a traditional estate agent is of course more expensive.

 

As a business, we have looked at all models.  It is true, that if we opted to charge clients upfront, (or using credit agreements), we could comfortably sustain our business, in fact you could argue that it could be even more profitable.  But where’s the incentive for the agent to achieve that extra few thousand pounds on the sale of your home.  Ironically, we work on the basis that if we achieve an extra £2000 to £3000 for the vendor on every house we agree a sale on, this equates to £30 to £45 extra in agent’s fees per transaction.    This may not sound a lot, but multiply that by the number of transactions we do per year and you can see the benefits.   

 

So it’s an easy win.   Using our expertise, we achieve our vendors the difference in fee’s between using us versus an online agent.    And remember, if we don’t, it’s the agent that’s at the casino.


 
Tags: Buyers, sellers, estate agent
Category: Watchdog V Purple Bricks?
Paul McGuirk - 10/08/17
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Parkland Estates are members of The Property Ombudsman scheme, The National Association of Estate Agents, The National Federation of Property Professionals Client Money Protection Scheme and complies with the Tenancy Deposit Scheme using MyDeposits. These memberships ensure we adhere to strict codes of practice and provide sellers, buyers, landlords and tenants with an assurance that they will receive the highest level of customer service.
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