I'm thinking of using Purplebricks to sell my house when they start in Sydney next month. They appear to do everything a traditional agent does and I've estimated it would save us about $65,000 in fees. Are there any catches, seems too good to be true?
Steve. Hello. I have read a little about Purple Bricks starting up in Australia, but unless you are talking about a multi million dollar property, real estate commissions are no where near $65,000
How do they suggest they will "save" you this much. ????
Please give me a call if you want any seriously professional advice.
1300 ASK KEN
Great question.... Purplebricks seems to be a great platform and a positive 'distrupter' to the normal way of buying and selling property here in Australia...
My company lists and sells hundreds of properties a year on the big portals with local agents and whilst I love working in this traditional way, I think the low fixed fee and full transparency part of their model is a positive move for our industry and for my personal property transactions I will be using this platform.
I agree with Ken, $65k seems high (unless you're selling a property worth about $3mil using an average 2.2% commission rate) but from what I can see there isn't a catch..
The only other consideration with going with an established local agent is they typically (well the good ones do) have a database of qualified buyers... As long as the purplebricks agent has a track record & database you should be right..
Anyhow mate, good luck with the sale and if you do sell it, check out Thirdi Group (thirdigroup.com.au).. With you being cashed up I'd love to show you our apartments in Sydney and Newcastle as they are a great option for your next home or investment 😉)..
All the best and have a great Christmas & NY!
Purplebricks have entered the market as they offer a variation on the traditional sales model. Whether it's all that vendors want, and deserve, is up for the market to decide. For my money (literally), I continue to recommend a truly independent vendor advocacy service. It's not well recognised but having been in professional finance plus property advice for over 22 years, there are only rare occasions when I couldn't endorse it.
Saving fees is great, but it's only one of the many vital elements of a great sales outcome and should NEVER be the primary factor in your decision making.
I am not clear as to how you arrive at a savings figure of $65,000
My suggestion is that you draw up a battle plan.
1. Start with a Realistic Price you want to achieve
2. Time frame by which you want to sell the house.
3. Expenses including agent's commission
4. Decide if you are going with an Open Agency agreement or Exclusive, there are Pros and cons.
When you have that you can then interview your local real estate agents and figure out who is most likely to help you achieve your goal. That's what I'd do.
0414 973 236
I am a professional finance broker and I always recommend that clients look for a real estate agent that commands the highest commission rate to sell their home. I follow my own advice in this regard.
When I am interviewing agents, prior to selecting the one to sell my own property, I always reject the ones that try to get me on price (lowest commission rate). What is going to motivate them to sell my home rather than another home on their books if the commission rates are all the same?
I choose the one who has the self belief to charge a high commission because they know they are worth the money.
I then offer to pay extra (a percentage) if they achieve a sale above their lowest estimate.
You don't think they are then motivated to really work hard to achieve the best possible outcome, knowing it will benefit their hip pocket??
Let's take your home as an example.
If you sell it through Purplebricks for say $3.6m you save the $65k figure you mention.
If you get the best agent in the area sell it for $4m, and he charges you $100k commission, you end up with $3.9m
My parents always taught me not to be penny wise and pound foolish.