Should I use Purplebricks to sell my home[/caption]Is the way to go selling your home? Purple Bricks to sell my home is a question I have been asked previously. While we do not speak poorly on other real estate companies, I will state the facts.
Purple Bricks is a discount brokerage that is non-refundable. When you sell your home, generally a commission is charged that the buyer and sellers split. Example of Standard Listing: $400,000 home by 5% commission = $20,000. This means $20,000 to the Selling Agent, $10,000 to the Buyer Agent. This is what purplebricks comes in. The only thing they can add of value is a lower commission that you would pay out and just place your home on the Multiple Listing Service, MLS. Whether the home is sold or not does not matter to them because they were already paid. Example of Purplebricks Listing: $400,000 x 2.5% (Because you still need to pay the buyer agent) - $6,000. This means that purplebricks to sell my home got $6,000, you paid out the buyer agent the $10,000 and saved a paltry $4,000.
To Remedy this flat fee service companies, RE/MAX 365 Has made it even better! We have embraced a new way of the flat fee. It is our Private Client Collection! We want clients for life, and if you become one we will list your home for much less of a flat fee. The reason we do this is because we will still place your home on Multiple MLS's, hundreds of websites, private tours, online website, etc. The reason we do this is because we still use your home to advertise our services to expand our business and get buyer leads. Also, we get you as a client for life and you buy your next property through us. Example: $400,000 x 2% to Buyer Agent - $499.00 = $8,499. This is much MUCH better than paying $20,000 in commissions or even Purplebricks $14,000. You will only pay $8,499 in commissions Total. And if we bring the buyer to that property, we would lower the commission even further.
Thought you should know:
More info to know if Purplebricks to sell my home:December 2015, The Guardian reported that Purplebricks was set for flotation, and would début on London's Alternative Investment Market (AIM) on 17 December, with an anticipated valuation of £240 million.
December 2016, it was reported that Purplebricks had made its first ever profit, a modest £300,000, in the six months to end October 2016.
August 2017, Purplebricks were featured on BBC's Watchdog following an investigation into claims of misleading customers.
14 September 2017, consumer review website Trustpilot issued an open letter clarifying its' Purplebricks review policy following allegations concerning the 'validity of reviews of Purplebricks by customers'.
15 September 2017, Purplebricks officially launched into the USA.
18 September 2017, Purplebricks were accused of 'corporate bullying' following suspension from estate agent review website allAgents.co.uk. Purplebricks threatened the consumer review website with legal action over the publication of negative reviews due to the site's lack of vetting for those leaving reviews.
17 October 2017, Purplebricks CEO Michael Bruce told BBC Radio 4's Moneybox programme that "88% of people sell their house within the deferment period of 10 months" through Purplebricks. This number was later questioned by a research report published by Anthony Codling of Jefferies where the analyst found "just half of Purplebricks’ customers in November 2016 sold their home within 10 months, far fewer than the 88 per cent figure chief executive Michael Bruce cited on Radio 4 in October that year"
5th February 2018 property review website allAgents called for an independent audit of Trustpilot reviews, following the research note by Jeffries stating "By their own admission, Purplebricks fails to sell 22% of properties, which means one in five customers didn't get what they paid for. Their 96% approval rating on Trustpilot is highly questionable when you have this number of customers who may well be aggrieved. But when it's almost 50%, that's just impossible".
Sources: The Guardian, BBC's Watch Dog