9 Reasons NOT to choose Purplebricks
1. THEY DECEIVE
They widely advertise that they charge “NO COMMMISSION”. Well, what do you call their $5,500 fee? Lunch money?
I strongly suggest you write a complaint to the ACCC (or Fair Trading) about their false claim of “charge no commission”.
Go on, do it, please. Don’t let lying poms deceive our home-owners!
2. PAY UP-FRONT.
Sellers have to pay Purplebricks the commission to sell their homes BEFORE their homes are sold.
Yes, seriously. And, if Purplebricks fail to sell their homes – as is happening with most of the homes they ‘list’ – they refund the commission, don’t they? No way!
I told you they should be called Purple TRICKS.
If they don’t sell a home, they still keep their commission (that they say they don’t charge)!
3. WHERE IS THE AGENT’S INCENTIVE?!
If salespeople get paid commission in advance of making a sale AND, if they still get their FULL COMMISSION if they fail to make a sale, why bother even trying to make a sale? Just list the poor sellers’ homes, grab the commission and do nothing – for the seller, that is. Of course, they can then look for their next sucker.
4. DREADFUL REPUTATION.
They began in England.
Go to the site that says it is “the biggest agent review site in the UK” – allagents.co.uk/purplebricks; you’ll soon discover they are less popular than the Ray White network in Australia (regularly the most complained about company – not just among agents, but ALL companies!). You will see multiple scathing reviews. The common theme is, as I suggested, THEY DO NOTHING EXCEPT CHARGE A HUGE FEE ($5,500 is a LOT of money for doing nothing!).
What percentage of their clients on the review site DO NOT RECOMMEND THEM?? Wait for it – a whopping 71%!
5. NO NEGOTIATION CREDENTIALS.
Despite claiming to be good negotiators, they provide no evidence to support such a claim. And please, remember the great truth about agents who can’t get a good fee for themselves – how can they get a good price for their sellers?!
6. DREADFUL SALES RECORD.
They might have listed hundreds of homes, but they have sold barely any. In Perth, I am told they recently displayed 96 Listings but have only sold three.
7. MANY (MOST??!!) SELLERS WILL PAY TWO COMMISSIONS
Here’s what is starting to happen now – and I predict will soon by happening in a big way as more and more sellers who sign-up with this mob realise they have been duped. When their homes fail to sell, the poor sellers have then lost their $5,500 and they then have to go to a decent agent and pay another fee.
Literally this means that the Purplebricks (sorry, I mean PurpleTRICKS) sellers will be paying two commissions. PurpleTRICKS love making a comparison by showing two figures – what a typical agent charges, say $15,000 and then what PurpleTRICKS charge - $5,500. The inference, of course, is that sellers can pay $5,500 instead of $15,000. But as Roger Rogerson said in Blue Murder – Killer Cop: “There is the facts and then there is the truth.”
The truth is that hundreds, maybe thousands of sellers who choose PurpleTRICKS will pay the P/TRICKS fee of $5,500 PLUS an agent’s fee of $15,000, a TOTAL of more than $20,000!
8. NOT AUSTRALIAN.
If you are in a small town or a regional centre or a fiercely “patriotic” state and you are an independent agent and you compete when many “big name franchises”, one of the best things you can say that often instantly turns people off dealing with the franchises is: “When you deal with us, you are dealing with a 100% locally owned business and we do not send hundreds of thousands of dollars of local money to faceless businessmen in their big city skyscrapers for franchise fees.”
The same applies with PurpleTRICKS. Why support the Poms? You won’t support them in the upcoming Ashes series when there is none of your money involved so why support them now by giving them thousands of dollars when they are unproven in Australia and so unpopular with the vast majority of sellers in England.
Plus, what would a Pommy company know about the Australian real estate market?
9.THEY CHARGE MORE FOR A SYSTEM THAT GETS LESS!!
A classic example of how PurpleTRICKS is ignorant when it comes to Australian conditions is this: They advertise that they get sellers “the highest price” and yet they charge sellers MORE for a system that any primary school maths child (in Australia) knows cannot get the highest price – PUBLIC AUCTIONS!
So, there you have it – nine powerful reasons for sellers NOT to use Purplebricks.
(An article by Neil Jenman)