Most onliners now offering ‘no sale, no fee’ as industry shifts

Eleven of the top 15 hybrid/online agents now charge on a ‘no sale, no fee’ basis, or offer an option to do so, begging the question as to whether overwhelming market leader Purplebricks will follow.

Yopa – backed by Savills and LSL – yesterday became the latest online agent to offer such a ‘no sale, no fee’ option.

It now offers a flat rate fee of either £1,495 or £2,695 depending on where clients live as a ‘no sale, no fee’ option.

That’s more than its traditional fee structure, which costs either £839 or £1,399, with the option to pay upfront or through a ten-month payment plan.

It is backing up the change with two new national TV ads and national radio ads.

The move means that of the top 15 hybrid/online estate agencies by listings (as ranked by a mystery league table published last year), the only firms believed not to offer a ‘no sale, no fee’ option are Purplebricks, Tepilo and Doorsteps.

Eleven other brands in the list all offer some sort of ‘no sale, no fee’ option, or in the case of easyProperty, it charges £295 upfront and a completion fee of £595.

It is not known how a 12th firm, Excel Estate Agency, charges its clients and EYE has been unable to reach the business at the time of writing.

In order of the ranking of the top online/hybrid estate agencies in the UK by number of available properties in December, EYE has attempted to establish what fee options these businesses offer:

1) Purplebricks: a flat fee of £849 or £1,199 in London and surrounding areas. No ‘no sale, no fee’ option available.

2) Express Estate Agency: charges on a ‘no sale, no fee’ basis with a typical fee of 1-1.5%.

3) Yopa: flat fee of £839 or £1,399, or a ‘no sale, no fee’ option of £1,495 or £2,695, depending on location.

4) HouseSimple: standard flat fee of £695, or £1,495 on a ‘no sale, no fee’ basis, payable on completion.

5) EasyProperty.com: recently dropped deferred payments and now charges £295 upfront and £595 on completion, as of January 2018.

6) Emoov.co.uk: standard flat fee of £795 upfront, or £1,495 ‘no sale, no fee’ option, payable on completion.

7) Tepilo: fixed fee from £645 (for the Essential package, £895 for the Classic package, or £1,295 for the Premium package). No ‘no sale, no fee’ option available.

8) Springbok Properties: offers a ‘no sale, no fee’ package “guaranteed”. EYE has contacted Springbok for further details.

9)  Doorsteps.co.uk: three fee options at £99 inc VAT, £199 inc VAT, £499 inc VAT. It does not offer a ‘no sale, no fee’ option.

10) EweMove: operates on a ‘no sale, no fee’ basis. EYE has asked for further details on typical fees.

11) House Network: a flat fee of £795 with no VAT or extras, or a £1495 ‘no sale, no fee’ option.

12) Hatched.co.uk: upfront flat fee of £495, or a payment deferred option of £895. Offers a traditional ‘no sale, no fee package’. EYE has requested further details.

13) Open House Estate Agents: managing director Alex Morrison explained that agents are free to choose their charging structure but that around 80% charge on a ‘no sale, no fee’ basis, with a typical fee of 0.75%.

14) Excel Estate Agency: EYE contacted Excel Estate Agency but no-one was immediately available and there are few details of its charging structure available.

15) Settled: charges a flat fee of £2,200 on a ‘no sale, no fee’ basis.

The question now is whether Purplebricks will move to a ‘no sale, no fee’ model. Analysts do not seem to think so.

One sector insider told us: “Their model is very much ‘list it’ rather than ‘sell it’. I don’t think it would stack up commercially for them to not be paid for months on a high proportion of listings and to have to add hundreds of sales progressors to ensure they got the ‘no sale, no fee’ deals completed.

“My understanding is they don’t even check chains or buyer finances and so they’re way behind the curve on this.

“As far as I understand it, they have just 40 ‘post-sale consultants’ overseeing 15,000 sales. Adding ‘no sale, no fee’ would dilute their upfront proposition.”

A spokesman for Purplebricks said: “Should our customers tell us they would like the choice to pay higher fees for the same quality service and that they don’t mind subsidizing those who don’t sell then consideration will always be given to meeting our customers needs.

“At the moment thousands every month tell us they prefer a fair, fixed fee.”

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61 Comments

  1. Hillofwad71

    Killer blows for Bricks ?

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    1. Property Pundit

      The glorified FSBO sector (that’s all they are) cannabilising itself. What a wonderful thing to witness.

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    2. Bless You

      It’s great news. Purpkeshits have tried dragging honest agents down with negative p.r. stunts . This has backfired on the online industry and now 95% of the market don’t trust them  . Bless ye who offered a genuine service. The Lord will see you never go hungry if u believe .

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  2. dompritch134

    Have you read this today, strangely no mention on this site.

    Good ole mr codling still maintains a hold rating.

     

    City broker Jefferies is warning that Countrywide’s earnings as calculated through the EBITDA measure could drop to as little as £50m – down from an estimate of almost £65m made only last month. 

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    1. Property Pundit

      The absolute master in deflection in action right here.

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    2. Rumpole4

      Dompritch134, jack of all trades, master of none.

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    3. Bless You

      That would make countrywide worth 4 billion on purplebricks current valuation pritck

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    4. Woodentop

      Absolutely nothing to do with the lead story. Yet another TROLL time waster, even if his drivel is entertaining.

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  3. 40yearvetran08

    Well, no sale no fee, fixed fee. Welcome to the world of estate agency. Good luck if you think you can handle volume with a handful of staff! Of course you have revolutionised estate agency! Tell that to the first time buyer who needs their hand held at every part of the process, keep the vendor on board when nothing seems to be going right except the agent has a gut feel that it will happen, fend off other interest from all the other agents in the area, undertake numerous viewings to get an offer. Good luck, we will see if they ever make any profit, I doubt it. Savills and LSL you have just p****** away a fortune between your investments in Yopa.(my spell check inserts Hope instead of Yopa, very apt!).

    40 years I have been in this business and in reality nothing has changed, we sell or let property by providing a service. Generally clients are prepared to pay for it, we have an average sales fee in excess of £7K. 25 years ago an agent started offering 0.5% when we were getting 1.5%. We are still here, Mr 0.5% lasted about 5 years. It is not about the fee, it is about the service you provide. If you have to join the low end of the market you have to accept you are probably **** at the job and perhaps you should consider doing something else.

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  4. ArthurHouse02

    Purplebricks model to some degree has worked for them, they have succeeded in their goal to make millions for their shareholder and has made their founders stinkingly rich, so well done to them on that. What this does show is that it would seem that for the most part, these online call centre agents cant make the flat fee, pay whether you sell or not model work, so this “online estate agents will dominate the market” rubbish has not come home to roost.

    As a vendor looking at Yopa for example, for most people the no sale no fee option isnt much of a saving at all, so there is no motivation to use them, same with the others. I see over the next few years, most of these companies falling by the way side as they make no profit, not dent in the market and investors lose the heart to carry on. This leaves PB as the only call centre agent available….if they ever start making a profit!

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    1. dompritch134

       

      ‘If they ever start making a profit

      Arthur PB made over £3 million in the uk in their last results.

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      1. ArthurHouse02

        EBITDA Dom, and besides they are one big company so any losses overseas effect what they are doing as a whole.

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        1. dompritch134

           

          Wrong Arthur 

          Purplebricks reported a rise in UK EBITDA (profits after costs and depreciation have been stripped out) to £4.7m, and an operating profit of £3.2m.

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          1. ArthurHouse02

            If you say so Dom, imagine how much more money they would make if they sold more than 51.6% of property! Oh…they wouldnt make any more money as they get paid either way.

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          2. Philosopher2467

            So Dom. As the resident PB expert; how much has PB spent cumulatively getting to the current position and what have they created as income cumulatively. I won’t ask profit as I suspect they are a long way off reaching that point on a cumulative basis. Also; do you really believe that, bearing in mind the current movement of the market, suspicion of PB’s claims etc, total it will ever be a sound investment at anything over £1 a share, or less even? What’s your opinion?

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            1. Bless You

              Blood money. The Lord will judge these founders. 

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            2. Mark Walker

              Dom’s not very good at maths.

               

              Which reminds me…

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          3. Property Paddy

            I think dompritch134 has let the cat out of the bag,

            “Purplebricks reported a rise in UK EBITDA (profits after costs and depreciation have been stripped out) to £4.7m, and an operating profit of £3.2m.”

             

            So how much is a share in PB really worth.

            £4?

            £3?

            £2?

            or

            £0.36pence !

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      2. Woodentop

        Your buddy ducky yesterday confirmed for all that PB are still £3.1m in the red after all this time and before total deductions. Considering the multi millions they receive … that is one big failure. Now the cat is out the bag, for PB rely on income coming in up front, that will dry up if they move to no sale = no fee. As they don’t sell much (sold, not under offer) we shall soon see how good they really are. Any investor should be worried to death … share price will collapse sometime this year as the public abandon them? …. they can’t survive on No Sale No Fee … the real world of estate agency. I can just see all the other hybrids TV campaigns hammering PB from now on. Unless you are in London, the savings for limited market exposure with the fee rises is not so competitive, at all in some regions. Springbok 2.00% and Express Eststate Agency 1.9% was the fee’s in my area when I last heard of them … both disappeared 2 years ago.

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  5. Philosopher2467

    It seems to me that it is dawning on everyone that the ‘pay up front’ model is insufficient to produce what is required in terms of revenue. The main problem is that, if they choose, any Tom, Dick et al can do it. It also seems to me that you can create a large impact but only if you spend more than you bring in to get to that stage, at which point, some cheeky devil has sneaked in and undercut you. That situation cannot last indefinitely. Add ontothat the resentment of those that have paid upfront and got nowt for their money and I think you have an ‘ever decreasing’ circle and market to try and farm. I think it is a given that the public will value a ‘full service’ high St located agent above the hybrid/call centre/spare bedroom ‘new kids on the block’ so, in the absence of something really innovative, has the purely upfront model had its day? It may not be the end: may not be the beginning of the end but, I believe it is at the very least, the end of the beginning!

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    1. Bless You

      Payanyway model wouldn’t even have got going if asa or property mark naea had got their heads out of there arches 2 years ago and protected the public. 

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  6. MrLister

    One sector insider told us: “My understanding is they don’t even check chains or buyer finances and so they’re way behind the curve on this.”

    Sector insider…..oh please.

    That is just total nonsense. There is no LPE that doesn’t check chains or finances before a deal is tied up. They do exactly what we do in the high street.

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    1. Philosopher2467

      I’m not convinced they do Mr L. Or; at least as thoroughly as the agent that KNOWS if it don’t complete he don’t get paid!!

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      1. MrLister

        They do. Every LPE I know has worked the high street for many years. The importance of thorough chain/finance checking is as ingrained with the LPE’s as it is with all of us.

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        1. Philosopher2467

          sorry; simply do not believe it.

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    2. Craigusfagus

      I have NEVER received a call or even a call back from an LPE regarding any chain that they are involved in. Ever.

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      1. dave_d

        Can second this in my area.

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    3. gk1uk2001

      They don’t! One of our vendors had an offer accepted through PB two weeks ago and the only way we found out was because our vendor let us know. No chain check was carried out with us by the LPE at all. When they told us we called the LPE and gave them the chain details. When asked what their own vendors onward movements were (buying on, going into rented etc) the answer we got was “I don’t know, I haven’t asked them. I’ll try and find out and call you back”

      So tell me again how ALL of their LPE’s ALWAYS check the chain before tying a deal up……….

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    4. Woodentop

      The LPE in my area never did when they worked for a big corporate.

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  7. htsnom79

    And based on turnover thats what, 8% margin?

    Good luck riding that horse for any distance

    ( in reply to dp134 above )

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  8. davehedgehog

    Blimey, the PB PR machine is out in force this morning, all 3 of them are on here and it’s not even 8.30 yet. Maybe PB are panicking and making them do extra hours.

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  9. MrLister

    Personally I think us high street agents should keep our fingers crossed that PB don’t come up with an NSNF option. But I can definitely see it happening….there are rumblings.

    Whatever is said on here there are a huge number of sellers who really like the PB way of selling houses but don’t list because there isn’t a NSNF alternative. If they bring one out we will all feel it. The brand is pretty much a household name, their marketing and advertising is distinctive and memorable and they’re very adept at using social media to their advantage. They also have very loyal and passionate staff who are in the main, good, experienced agents. With their advertising budget and some of the new tools/ideas in their pipeline I think we’ve all got very good reason to hope they don’t go down the NSNF route.

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    1. Property Pundit

      Cheered me up no end that.

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    2. Philosopher2467

      Again Mr L; I’d welcome it as it would be an ‘own goal’. Why would anyone use ‘agency lite’ when they can use agency real? Or am I wrong? I as indeed I suspect all ‘owner drivers’ Would back myself every day, all day and twice on sundays, against anyone let alone someone working from the ‘spare bedroom’ at home. 

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      1. MrLister

        This is the ongoing problem. Many of us describe them as “lite”. Maybe that makes us feel a bit better but it simply isn’t true.  They are “agency real”. They are not numpties. Why do we keep pretending they’re all useless and can’t/don’t do the job. They do. How can we debate and discuss when most contributors on here are in denial?
        I could keep saying it till I’m purple in the face but LPE’s are experienced, very hard working (working hours we don’t) very accessable and very committed. 
        I’ve said it many times, I love the high street, I don’t want to work for PB and I am a big advocate of the NSNF model but with the insight I have I can also look objectively at them. We all should!

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        1. AgentV

          Mr Lister,             

          Does your partner take the very best photographs she can to represent the property, carry out as many viewings as possible, encourage as many offers as she can to try and get the very best sale price for her vendors, negotiate hard with all potential buyers making offers and then follow through with an after sale service to help everything through to completion.

          Does she do all that for £250 to £300?

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          1. MrLister

            Yes she does.
            She did it as a high street manager for 10 years so why would she suddenely become a bad photographer or a bad negotiator or deliberatly keep viewings down just because she’s changed company. Would that happen with you? Again, a really silly unconsidered comment.
            Does she do all that for £250 to £300? Not sure what you mean by that. If you mean her commission on each listing, that’s about right. And yes she does.

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            1. AgentV

              Well, then she certainly is a dedicated person.

              If she can do all that for £250 per listing, then I really don’t understand why she doesn’t just start her own independent agency up and earn three to four times as much, whilst still undercuting the fees of Call Centre Listers.

              Why don’t you both do it…..build a long term local business you can sell when you retire, making the money for yourselves rather than a massive corporate?

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            2. Philosopher2467

              I wasn’t aware that your partner was an LPE. I don’t know the lady in question but what I think I can say is, she’s in the minority. The model rewards houses on the market and therefore, counter as you may, I would bet that 90% + of her colleagues will spend every waking moment trying to get the vendor to part with ‘the grand’!

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            3. PeeBee

              “She did it as a high street manager for 10 years…”

              You mean seven, surely?

              Not ten.  Ten is three years too many, according to available documented information.

              Only yesterday, you stated

              “Connells manager for 7 years.”

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              1. MrLister

                Connells 7 years, independent 2 years, neg for a year before that. Nine years then, whatever! Can’t see the point in your comment.

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    3. PeeBee

      “Personally I think us high street agents should keep our fingers crossed that PB don’t come up with an NSNF option. But I can definitely see it happening….there are rumblings.”

      You should be screaming for it.

      I repeat previous statement

      Bring.

      It.

      On.

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  10. Essjaydee51

    Mr l.

    we had to listen to your defense of your partner yesterday and that was understandable but now you are telling us that you not only know how good your partner is but ALL of the lpe’s and that is utter nonsense!

    i am in a chain with one of the lpe’s and have had to take over their part of it for sales chasing as the call centre section  are lackluster in their ineptness to actually help which between them means they just don’t know or can’t be bothered and which also means that if we don’t get this exchanged by 10 today my client is withdrawing (but then pb have been paid so they don’t care) so you’ll forgive me for being sick of your rhetoric but it just ain’t true to the degree you preach and there not being posted support from your partner  also lets you down and proves from a comment yesterday about who wears the trousers!!

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    1. MrLister

      I do agree. Perhaps a slighly sweeping statement on my behalf. But in the main they are very experienced and conscientious. Obviously there will be the odd one (just as there is in any large company) who cuts corners or doesn’t do a thorough job. I’ve had the odd issue with an LPE before. I’ve also had many issues with fellow high street agents not doing the job properly. Be honest, we come across it every day in the high street…sales not having been chased for a while, incomplete details etc. Silly to just suggest it’s a PB thing.

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      1. PeeBee

        “But in the main they are very experienced and conscientious.”

        MrLister – time for a reality check I’m afraid – for your own benefit and future credibility.

        Matey – you are continually writing checques with your “slightly sweeping statements” that simply cannot be cashed!

        Your partner’s ‘pillow talk’ is one thing – and has clearly done a number on you good’n’ proper – but of the 700 or so current LPEs (apparently 50 or so have been replaced in the last month alone, according to one astute person who checks them regularly) how many do you actually know personally? And know them well enough to stand as character witness?  Or how many does your partner know in such intimate manner?

        My guess is a good deal less than last month’s harvest between you.

        Please – step back a little from this. 

        You need to take stock of your own thoughts and beliefs and not play the dutiful defender of your partner’s livelihood.  If and when the balloon goes up and PB et al do go t!ts-up, implode or supernova, clearly there will be a place back on the High Street where your partner can continue to be as experienced and conscientious as you know her to be.

        And you can hold your head up having taken it for the biggest and most overdue 5h!te of its’ life.

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        1. MrLister

          PeeBee. To clarify and comment on some of the points you’ve made.

          It’s obviously not just pillow talk. That’s a silly thing to say and makes you look less intelligent than I’m sure you are. I sit and talk to my partner about work just as all of you who have partners do. My partner is bright and intelligent and I am sure what she tells me about PB and her working day is truthfull, not lies or exagerations. She’s very straight and honest. That’s why I’m with her. Do you doubt your partner/wife when you talk about work? Do you both lie to each other about your day? Loving couples in a good trusting relationship do not “do a number, good and proper” on each other. Really silly comment PeeBee. 

          I’m not blinkered or easily taken in and I don’t agree with her for the sake of it. We have really good healthy discussions about our work and the companies we work for. Just like everyone else on here.

          50 LPE’s being replaced is not something she or any of her collegues know about. My guess is that’s fake news!

          Admittidely I’ve probably only met about 10 other LPE’s and no I don’t know them all well enough to act as a character witness. She obviously knows and meets a lot more and sees first hand how they work.

          “Please – step back a little from this” Step back from what and for why? Should we stop talking and should I just doubt everything she tells me or shows me. I’m just saying what I see and hear and have no reason to mistrust any of it. Nor would you in my position.

          “dutiful defender of your partners livelihood” Um, just a bit patronising. I can think for myself quite well thanks PeeBee. If i thought she was lying, misleading me, being naive or being sucked in, believe me, I’d let her know. 

          “And you can hold your head up having taken it for the biggest and most overdue 5h!te of its’ life.” Sorry, no idea what thats supposed to mean. Have a good day!

           

           

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          1. PeeBee

            MrLister

            Let’s clear up a point or two shall we.

            At no point did I accuse your partner of lying to you.

            “50 LPE’s being replaced is not something she or any of her collegues know about. My guess is that’s fake news!”

            I have to fess up that you are in part correct.  It has actually happened over a FOUR month period, not one as I mistakenly posted.

            You may consider even that corrected information to be “fake news” – my money however is on the source being correct.  Oh – and apparently it is 54 (and no doubt rising).

            “And you can hold your head up having taken it for the biggest and most overdue 5h!te of its’ life.” Sorry, no idea what thats supposed to mean.”

            Trust me – you will , when the event occurs you’ll know – as will probably the rest of the civilised world.  In the meantime every single post you submit is continuing to erode any final tiny shred of credibility you could ever hope for.

            But if all else fails you can fall back on your other you – ‘P J’ – or any other posting names you choose.

            You don’t stand out at all – so that’ll be just champion.  Just keep up the pro-PB keybashing and who knows you might even convert us all.
             

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            1. PeeBee

              MrLister

              For the avoidance of doubt – that last sentence was cold, pure sarcasm.

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              1. MrLister

                PeeBee, you’ve looked at my comments but haven’t read them as your reply clearly shows.

                A few final things.

                I love working the high street, I’m pro NSNF,  I’ve no intention of joining a hybrid agent and I’m not a huge PB lover, i just try and see it from all sides which having an LPE as a partner I can. It also allows me to dispel some myths and inaccuracies.

                I guess I thought that with a pretty good knowledge of PB my comments might be a useful insight. Obviously not, and not a lot of point trying and be constructive and objective on here so think I’ll call it a day on commenting and wish you all well…yes even you PeeBee!

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                1. AgentV

                  I think one of the major issues is that your views come across as you being pro the model…making out it provides the same kind of service, if not better, as you do in the high street.

                  All the evidence we see and know about is to the contrary…..but if it was the case, surely you would prefer to work as an LPE along the same lines as your partner, still being able to give the same level of customer service and contact….but having much greater freedom, and according to the rhetoric….being able to earn more money. Have I missed anything?

                  Otherwise, I still for the life of me don’t understand why you and your partner don’t just set up your own agency. If she can do all that she can for £250 per property I think you will absolutely nail it. Even at a similar level to the main Call Centre Lister fess you would surely both earn more money (as you would be getting all the fee..rather than between a third and a fifth), and you would be building a profitable business for your future….not putting all of your endeavor in and working to make the owners of a big corporate business richer than they already are!!!

                  BSOS23PC

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                2. PeeBee

                  “PeeBee, you’ve looked at my comments but haven’t read them as your reply clearly shows.”

                  I genuinely don’t have a Scooby how you can make this statement.  Please draw me a picture so that I may gain some understanding.

                  “…not a lot of point trying and be constructive and objective on here so think I’ll call it a day on commenting and wish you all well…”

                  That’s a pretty defeatist attitude from someone we would all reasonably assume to be a ‘lister’, isn’t it?

                  Even one that lives a short plane journey from his ‘patch’.

                  I have little doubt however that when someone gathers up your toys and puts them back in your pram you’ll be back – as gushing as ever with your pillow talk, and further extolling the virtues of the company your partner currently subbies for.

                  I look forward to that time or day, MrLister.

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  11. PeeBee

    It’s no surprise that PB are holding back. Looking at the others, their NSNF packages reflect their success confidence, plus a couple of points or so perhaps for good measure (I’d call it ‘hope value’, personally…).

    SO – let’s make a prediction or two.

    IF PB decide to go down the NSNF proposition route, their costs would, I reckon, come out at:

    £1695 outside ‘London’.

    £2695 for ‘London’ properties.

    Add £500/£750 if they also decide to include viewings in the figure in order to make it truly No Sale NO FEES.

    Good luck with that, BrucieBros – I’m sure the shareholders will just LUUUUURRRRRVE the idea.

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    1. Mark Walker

      The City folks are very pleased with things.  Shares up today.  The same City folk behind the mega share price growth of a company that doesn’t make any money.

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  12. Chris Wood

    Interesting complaint on the PB Twitter timeline yesterday:

     

    Jason Lafferty @jaslafferty
    1d

    .@PurplebricksUK If Ihave paid for an estate agent to do my viewings should it be the estate agent that does them? I appear to be having one of your office staff do mine…is this common?

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    Purplebricks UK @PurplebricksUK
    1d

    Replying to @jaslafferty

    Hi Jason. Viewings can be carried out by an experienced Viewings Assistant on behalf of the LPE.

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    Jason Lafferty
    @jaslafferty

    Replying to @PurplebricksUK

    I will check my contract then. Seems misleading as this was never discussed.

    10:21am · 14 Feb 2018 · Twitter for iPhone

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    Reply to @jaslafferty @PurplebricksUK

    Chris Wood @PDQProperty
    21h

    Replying to @jaslafferty @PurplebricksUK

    The contract seems quite clear to me. All of #PURP s’ customers are paying £300 for viewings to be conducted by an ‘LPE’ but this is often farmed out to someone else. @ASA_UK @CAP_UK @tsestateagency @PropIndEye @property_whore @PropertyJourn @GoldbergRadio @Moneybox

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    Jason Lafferty @jaslafferty
    21h

    Replying to @PDQProperty @PurplebricksUK and 8 others

    Is LPE how they refer to Estate Agents? Or have they avoided defining LPEs for exactly this reason?

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    Chris Wood @PDQProperty
    20h

    Replying to @jaslafferty @PurplebricksUK and 8 others

    It is your ‘LPE’ (singular) and not a ‘viewing assistant’ that you (and all other users of this firm) are contracted to receive. Please let me know how you get on. You might also find this of interest blog.pdq-estates.co.uk/2017/04/12/pur…

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    Purplebricks UK @PurplebricksUK
    1d

    Replying to @jaslafferty

    I’m sorry if this wasn’t the case and you aren’t happy. Give your LPE a call in the first instance and we will resolve.

    Extract from the Purplebricks agreement makes it very clear that the customer is paying for an ‘LPE’ to show the property and not a viewing assistant. There is a potential claim for several thousand refunds if I ever saw one. https://pbs.twimg.com/media/DV_6EAAXkAET5eC.jpg:large

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    1. Malcolm Barnard

      I can see that part of the contract being hastily rewritten. “If you agree to pay for our viewings service a member of Purplebricks staff will show prospective purchasers around your property”.

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  13. J1

    So the founding fathers of the on-line, up front payment, no sale still pay model are all struggling to make ends meet and their shareholders are losing patience with the face of these companies either stepping aside, or being fired.

    There is no surprise in any of this to those of us with 25 years or more experience.

    The fact is an Agency business that wants to provide a half decent service needs half decent staff and with them come overheads that cannot be met by up front low fees.

    Every, and I mean every agent on the high street that has had an up front model only or a quirky charging model has failed.

    These on-liners have failed, and it is only a matter of time before the Blues Brothers fail too.  Ride the stock market wave boys, at some point it will crash against the rocks.

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  14. Thomas Flowers

    Chris,

    I found this hidden away at the bottom of PB’s website yesterday:

    † Our viewings service is an optional £300, where we’ll take care of every single viewing for you, with a dedicated professional. 

    Presumably, a dedicated {I have your money now] professional is an LPE?

    Should they add * We shall charge you £300 whether you have any viewings or not?

    How about #NEWSFLASH are PB running out of symbols from which to hide away ASA rulings?

     

     

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  15. dompritch134

    PB SP up 20points 5%.

    For balance will the PIE shareticker be returning tomorrow?

     

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  16. dompritch134

    or maybe the lead will be a hilarious video requested by PIE to mock Purplebricks

     

     
    http://www.propertyindustryeye.com/videos/how-agents-use-video/watch-reddoor-homes-take-on-the-purplebricks-tv-ads/

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  17. Woodentop

    Shall we see the LPE’s abandoning the PB ship if they go the No Sale = No Fee route. Being self-employed it doesn’t take much to work out that they won’t be getting their upfront fee for a listing, if it doesn’t sell. They will have to work for their money and a one person LPE cannot do the workload it currently takes an office with staff to list, find buyers, chain checks and progression, viewing, fire fighting chains, etc etc all for £250 or so. NUTS, absolute NUTS. Most LPE cover a larger area!!!!, which is why we all know they don’t actually provide a full service package today. Are they going to do it for free, if there is no sale? LPE have sucked up to the easy peasy listing fee without having to work for it. PB business model is based purely on “take-on fee”, LPE will require a substantial pay rise or most will be running around pennyless. This will price PB out of the competitive market that they sell themselves on “low fee”, which it isn’t in many parts of the country and no room for movement to be competitive.

     

    Unless PB go No Sale = No Fee, they are going to be creamed by the likes of YOPA and other top 5. The press will have a field day? LPE’s will loose the comfy ride and have to start working for a living, many will not be so happy to stay.

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  18. Sunbeam175

    Now only 7% of customers that have used them would recommend them. This was at 20% last year and slowly dropping and dropping! The public are getting wise slowly. I’m going to Vegas at the end of the month and I won’t be getting any huge sums on a 50/50 bet! Ahhh CONmisery!

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