Purplebricks Share Discussion Threads

[elcapital2017] 19/10/2017 08:28

Purplebricks has told Estate Agent Today it is more open about its business than almost any other agency and stridently rejects criticism about its failure to publish numbers of completed sales.

Yesterday’s ruling by the Advertising Standards Authority - effectively banning two Purplebricks TV ads because of what the ASA called their “misleading221; statements about fees - prompted renewed criticism of the hybrid agency by investment bank Jefferies.

Under the title “Purplebricks - misleading again” the Jefferies equity analyst Anthony Codling issued a note to investors criticising the agency’s failure to provide completion statistics on the number of properties it has actually sold.

Codling said that the ASA ruling once again prompted a key question of Purplebricks - how many homes does it actually sell, as opposed to list?

Codling told investors: “So far Purplebricks have always chosen not to answer this question, despite the fact that according to chief executive office Michael Bruce ‘Purplebricks is firmly on the side of the consumer’.R21;

The note continued: “As Purplebricks is committed to increasing levels of transparency, we look forward to it adding its completed sales statistics to its adverts to help its consumers make a fully informed choice between paying Purplebricks irrespective of success or paying a traditional agent only if they are successful.”

Now in a statement to Estate Agent Today, a Purplebricks spokesman has hit back at the accusations about the firm’s transparency.


“Purplebricks provides more information about its business than virtually any other estate agency. In our latest audited results we reported that the UK sold and completed on £5.8 billion of property, with a further £3.7 billion sold subject to contract” he says.

“We sell houses. Traditional agents also do not report the conversion rate, though we would imagine customers who are keen to sell their houses quickly would be keen to know whether they were locking themselves into a 12 week contract with an agent with a poor sales record” he continues.

“Purplebricks is far more transparent in its charging. Our fees are fixed and published on our home page, unlike traditional agents, whose rates aren’t published at all and will vary even on the same street depending on the negotiating skills of each customer.”

Jefferies has in the past acted as an adviser to Countrywide, LSL Property Services and ZPG.

In a separate analysis - here - by Andrew Stanton, who heads the Estate Agency Insights and Strategies, it is revealed that Purplebricks had around 28,000 properties listed on Rightmove in a snapshot of listings taken early this month.

This far exceeds the number of properties listed on the portal by all other major online players put together - but it does not indicate how many properties actually go on to be sold through the online operators.

Media analyst Mike DelPrete, who has already written extensively about Purplebricks, has analysed the agency’s first month’s operation in the US.
“He says: “At the core of Purplebricks’ business are the local property agents, called Local Real Estate Experts in the U.S. After one month in the market, Purplebricks currently has 24 licensed agents operating in the launch market in Los Angeles, California. This compares to over 650 local property experts in the U.K., and over 100 in Australia.

“After one month of operation, Purplebricks U.S. currently has 12 listings, nine of which are for sale, and three of which are pending. Of its 24 agents, nine agents have one active listing each. Sixteen agents currently have no listings.

“Yes, in isolation 12 is a small number, but remember that this is a new business. Getting a new listing every 2.5 days isn’t bad for a new entrant in its first month. But let’s see how it grows from here.”

You can read his full summary of the US operation here.


www.estateagenttoday.co.uk/breaking-news/2017/10/purplebricks-says-its-more-transparent-than-almost-any-other-agency

[elcapital2017] 19/10/2017 08:05

This one offers two choices

www.crowdfunder.co.uk/guides/faq/project-owner

What happens if I don't reach my project target?
All or Nothing – If you don't hit your project target, no money will be taken from your backers. Your backers will receive an email informing them that the project has not reached its target and that they will not be charged. You'll not be charged any fees if an 'all or nothing' project does not reach it's target.

Keep what you raise – You will receive any funds pledged on your project regardless of whether you reach your target or not. Your backers will receive an email informing them that the project has closed and that they will now be charged. You'll be charged the Crowdfunder fee of 5% VAT on all pledges received.

[elcapital2017] 19/10/2017 08:02

jaknife

The crowdfunding sites all work differently

Some have to hit the full target, some have a minimum target to hit, and some let them start withdrawing as soon as the first pound hits.....less there 5 or 6%

[hillofwad] 19/10/2017 05:55

Sounds to me this legal "fight"against "bullying" by Bricks will be perceived by Joe Public as sour grapes Its OK reaching out for the moral high ground but all its going to show is all reviews are manipulative by both sides

Expensive slanging match with no clear winner

The money would be better spent on a TV campaign countering Comissery and setting out very clearly the bespoke service that agents offer especially important in a challenging market This time last year Bricks instructions plateaued but all it took was the xmas TV mesage of Comiisery and they picked up again in early 2017


The message being all estate agents are the same you might as well use the cheapest has unfortunately struck home

Both the NAEA and RICS have arrogantly ignored this and have failed to respond and highlight the very real value and service of their members . Agents although clubbable in indignation are usually at each others throats

Bricks know this and have used it to their advantage

[rogthepodge] 18/10/2017 22:58

only another £39,427 to go

[bbmsionlypostafter] 18/10/2017 22:11

£10,573 raised.

[rogthepodge] 18/10/2017 20:25

Elnocapital

I refer you to collgo's post above

post 2822

I have taken onboard his comment, so I shan't respond to you in kind

[tonybaloni] 18/10/2017 19:10

Boofay, I take your points on board about pricing to cover cost of high street agent fees but you said it yourself, price is the first attraction on Rightmove to Joe. As regards having to pay up front as apposed to after the sale has completed, to me, if somebody is undertaking the massive expense of a house move and all the associated costs going with it, then if the haven't got £850 sloshing around they shouldn't be considering a move. If you sell a £5k car on Autotrader then upfront costs, last time I did it, were circa £50 - £75 if I recall correctly. So to sell something 100 (or even 200) times more expensive for only 10 times the cost is surely a bargain.

[andy] 18/10/2017 17:41

Clealry the rumour of the budget cut/abolition of stamp duty for first time buyers has pepped up the listed agents, PURP, Foxtons, and Countrywide.

Yet how much difference will it really make?

I see the real problem being affordability, and even eliminating the stamp duty, although it will help, will not eliminate the deposit requirement, nor the high income multiple.


It does look as though the government is trying to prop up the housing market when in reality they should let it regulate itself.

They are in danger of tempting in first time buyers at the top, which could result in some real pain in the longer term, with the prospect of higher interest rates, IMO.

[andy] 18/10/2017 17:34

luckymouse,


Nice charts, thank for posting them.


Yes it always seems to come back to this key area, just when it looks as though it's going to fall away.

[collgo] 18/10/2017 17:00

I do wish elcapital2017 (and a few others) would cease their rudeness.

[luckymouse] 18/10/2017 15:41

That's the key level folks are fighting over

[hpcg] 18/10/2017 15:40

Purp - headline fixed priced is clear, 300 quid extra to show people around is clear. Fees if one chooses not to pay up front are not clear. The fee to get out of the conveyancing is relatively easily found, but the fee for the conveyancing is nowhere I can see.

[boofay] 18/10/2017 15:27

Baloni i would look at your 3 valuations and market at the top price as long as not stupidly higher then other prices.

Then use a local agent to try and get that price for a flat fee of £5k.

PB simply put on rightmove...buyers are only attracted by the price and nothing on else online...i.e an agent working for 5k will work harder....even if only 50% chance this is true you get 2 things.
1 = you only pay when they finish the job
2= you achieve the best price knowing you have a local comapany who is motivated to get you the best price so neibours use them next time.

Will a student sat in soliholl head office care this much?

[zho] 18/10/2017 15:24

Discussed at from 11.30

[elcapital2017] 18/10/2017 14:55

I think there is room for both. The problem with PURP was the massive valuation and maybe the jump into foreign markets a little too early

I liken it to stockbrokers and execution only houses. Its down to prefernece

[andy] 18/10/2017 14:49

Tony,

In reality the agent's part is the negotiation, and ongoing stewardship of the sale, and being able to smooth out any problems as and when they occur.


I think those are PURP's weaknesses, at least from what I heard about a sale that got sticks, and there was little to no support from the PURP representative. That is hearsay, but the person concerned had no reason to lie.


There is a lot more to selling a house than just the listing cost, there is a service element too, IMO.

[tonybaloni] 18/10/2017 14:07

Elcap, Moving up so probably notRog, I have always insisted on doing my own viewings anyway. Agents just lead people round, point at things and state what they are. It needs a passionate owner of a property to show somebody round and do a proper " features and benefits" job. My experience has been the agent doing the viewing knows very little about the property, never has the ammo to answer viewers questions, never tries to close or get a handle for the viewers true feelings.

[elcapital2017] 18/10/2017 13:58

Baloni....selling your house? Those QPP losses hurting you?? :)