Purplebricks Share Discussion Threads

[porsche1945] 07/7/2020 20:22

Purp will do well from here. Most high st agents are cxxp, expensive, hopeless and only stick it on rightmove anyway. I know three people who have used Purp in the last few months and all have sold and been more than happy. Plus everything is online these days, apart from specialist agents in London PB could really clean up elsewhere especially now they are concentrating on U.K, as they should always have done.

[7rademark] 07/7/2020 14:35

You miss my point, long term its in the LPE s interest to sell the property quickly and efficiently, that vendor tells their family and friends, who use pb to sell their home, therefore more future commissions.This is page one of selling for dummies,

[andy] 07/7/2020 13:53

7trademark,


An LPE only earns commission when he signs up a new client, that's the problem with their system IMO.


I don't believe any LPE's would put company reputation above their own desire to make as much money as possible.

[7rademark] 07/7/2020 13:19

Took a few more today, pre covid pb was in a firm 100p-120p trading range, I see no reason why the share price will not return to that level on technicals alone, earnings will then provide some more clarity in August.

[7rademark] 07/7/2020 08:38

LPE's are not forward thinking if they believe they shouldn't push sales, a good LPE will understand a quick efficient sale will encourage further use of pb and therefore more commission

[andy] 07/7/2020 08:30

1G,

" One recent reviewer posted about being on their fifth LPE. "

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Exactly, and what incentive do these LPE's have to sell a property they themselves (presumably) do not receive a commission for?


I have asked before, if the original LPE is rewarded for signing up a new client, and subsequently leaves, what incentive does his replacement have to accompany viewings and sell a property that he himself will receive no compensation for?


And whilst a replacement LPE is focused on viewings for a property he is not being paid for, he is losing opportunities to sign up new clients that he would receive a commission for!


No wonder they're leaving in droves......

[andy] 07/7/2020 08:25

dennisbergkamp6 Jul '20 - 15:33 - 1603 of 1611


@Andy, I'd prefer a better price, but their stance was a quick sale.

-------


Well you determine the price, not the agent!


Anyone can research recent prices in their road on the web in around 10 seconds, so no need to accept a low price unless you're desperate for a quick sale.


The prudent thing to do, IMO, is to contact three agents and let them value your house, and see what the best terms offered are, and then make a choice.


I do not believe PURP's suggested price will be much higher than the average of the three, and, if it is, that PURP can sell the property easily in the current market.

[dennisbergkamp] 06/7/2020 21:11

Let's get a bit of perspective here.... You're talking at a price in the 40's/50's, not 400's... so yes, it's obviously fallen back for good reason, but not all experiences are bad with purp, accordingly, not all are good... question you need to ask is whether, at these levels, they are worth investing in.

I see adverts coming back

I see the market picking up

I see a forthcoming removal of Stamp duty up to £500K purchases which means the majority of the market will get a boost, no matter what, and this probably plays into the level of buying and selling that purp is better at... ie the level at which a seller would consider the fee paid to agents as they are not at values where the agent is more essential at getting a higher price (more the million+ properties)

"you pays your money..."

D

[1giraffetrader] 06/7/2020 20:51

the 'onboarding' of these LPE's is a fairly cumbersome process, whereas if they want to quit, they can do so at the drop of a hat. If they are losing LPEs quicker than they can take them on, this could pose a serious problem for PURP. One recent reviewer posted about being on their fifth LPE. What good is that for business, no continuity... I expect a further fundraise at some point this year, or axel springer to put a bid in for the business, however they must do their due-diligence before doing so because the historic accounts don't make for good reading, it's been a money pit and will probably continue to be a money pit and axel may end up being 'in for a penny, in for a pound' throwing good money at potentially a not so good cause. I guess it depends on if the big boys at axel springer have the balls to say they have made a mistake with purp or if they will let their egos get the better of them and continue ploughing money into PURP in the hope that all will come good.

[kramreklaw] 06/7/2020 20:32

Mark your calendars for 8 months time when Purplebricks raft of new clients have to pay off their commission loans regardless of their properties not having sold. If they had an influx of new clients from pent up demand due to lockdown, all signing up at the same time, then all their commission loans come due at the same time too. This is likely to be a low transaction year and so many dissatisfied customers all at one time. It will be fascinating to see their reviews on the loan due dates that hit on their anniversary after lockdown. Mark your calendars for that raft of publicity...

[scottish007] 06/7/2020 20:04

Easiest sale of a house l‘ve ever had.
Price was very reasonable too.
There are two companies l’ve invested in strongly influenced by personal customer experience - Dart and Purplebricks.
There will be many peaks and troughs but good service will see them through

[7rademark] 06/7/2020 18:49

Traditionals will be under more pressure than hybrids, another 10 years and hopefully most high Street agents will die out, their business model was and still is to extract as much money out of vendors as possible, a similar model to double glazing salesman, turn up for the appointment, suss out the potential vendor, hit them with the biggest % possible whilst lying about how much better they are than the competition, the vendor eventually finds out he's paid 2k more than his neighbours and next time will use pb or similar. Good ridence to them,

[1giraffetrader] 06/7/2020 17:31

As I’ve mentioned before their marketing spend in my opinion is simply their ‘cost of doing business’

The general snapshot of job losses and companies going into administration is not specific to purp, but more a reflection of the general current sentiment And outlook towards the UK econoMy, to which the housing market is strongly linked.

Estate agency in its current form is a dying trade, this is reference to the industry as a whole, not focusing on the onliners vs high street, both are going to struggle over coming months and even next few years

[hillofwad] 06/7/2020 17:14

"Dwindling cash balance "


Its all relative Countrywide are £90m in the hole

Yes difficult times ahead However more likely to sink other onliners who are not so lucky to have a cash balance Picking up some of the crashes

Lets face it Axel paid for the overseas flop with the £120m investment

"The staggering amount of turnover required just to make a wafer thin level of profit."

Not really its the huge marketing spend which eats into the profit This is an area which they can address

Have to agree about Vic However he is not carved in stone

[1giraffetrader] 06/7/2020 16:50

I had a suspicion results would be delayed. Many companies have delayed trading updates & results lately for whatever reason. Back to PURP, Of course they will have had a recent spike in business when they re-commenced business... Look at Mcdonalds, KFC, B&Q, even Primark when they re-opened, all had a spike in business then returned to more 'normal' levels. The thing is, I don't foresee the housing market returning to 'normal' levels because low deposit mortgages are currently in short supply and unfortunately many jobs are being lost.
Banks are not wanting to over-risk themselves, Nationwide only doing 15% deposit mortgages minimum, they are forward planning because if the housing market does end up falling by 10% or even 15%, they are not going to want to be taking the hit on their equity of the property. Next of all.....
Of course PURP and estate agents are going to portray the message that they are busy and it is business as usual. They are not going to say business is dead are they? Around where I live, instructions have gradually started picking up across the board for all agents. PURP will have a stronger foothold and be more prevalent in some locations and not so much in others. To focus on and analyse a particular 'pocket' of the country would not really give a true reflection of how they are doing across the board. But hey-ho, if thats what you want to do, then go for it.
The three things in my opinion that would make me proceed with extreme caution would be: the dwindling cash balance, staff/LPE churn and the staggering amount of turnover required just to make a wafer thin level of profit. & lets be honest, we've heard very little from the CEO all year. One would have thought he would have been a little more bullish and engaging with some news/media outlets to get his word out there that PURP are the best thing since sliced bread! At least michael got involved, plugging his fixed fee and online concept. Where is Vic?

[dennisbergkamp] 06/7/2020 15:33

@Andy, I'd prefer a better price, but their stance was a quick sale.

@hillofwad, possible for FY 20, but still believe that at this price, negatives are priced in and can only be a move up... guess we'll see

D

[hillofwad] 06/7/2020 15:17

Dennis

I guess they want to dilute any neg news with Q1 FY 21 scores on the door

[andy] 06/7/2020 14:53

Dennis,

" as the local agent was looking to move the property of their books faster as its in their interest to keep the properties on their books fresh"

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Isn't that what you want, a quick sale?

[dennisbergkamp] 06/7/2020 14:47

Purplebricks, the UK's leading hybrid estate agency, will announce its Full Year Results for the year ended 30 April 2020 on "Monday 3 August 2020"

D

[hillofwad] 06/7/2020 14:21

"Be interesting to read the results tomorrow."


Really isnt going to tell very much that we dont know already

UK

1 UK listings fell in FY 20
2 Revenue only slightly down due to raising fees
3 Operational profit in UK

Canada Carbon Zero

Oz&USA closure costs higher than anticipated

Hit the ground running since lockdown

[dennisbergkamp] 06/7/2020 14:13

Long neck,

Always multiple sides and opinions, but my interactions with them for my sale was great.

Lots of information, their portal was well worked out and easy to use.

The only thing I'd say, and it'd be true of many agents, but in particular a fixed fee agent, is that if you have the time, then showcase and present the property yourself by doing the viewings. You know your property best.

Outside of that, PB saved me £000's in fees and the price I got was more than what the local agent said I'd get.. as the local agent was looking to move the property of their books faster as its in their interest to keep the properties on their books fresh

D

[1giraffetrader] 06/7/2020 13:57

Be interesting to read the results tomorrow.
Another thing which seems to be under the radar at the moment is the staff/LPE churn. One recent review claiming to be on their fifth property expert! 3 days ago "They even removed my property because the computer decided we hadn’t paid them, which we had 12 months previously, and nobody noticed! Including our Fifth ‘local expert’!" 29 Jun 2020
PURPLE BRICKS is the worst organisation…
PURPLE BRICKS is the worst organisation I have ever dealt with.

When I contacted them to sell my flat, James, the then representative impressed me and I agreed to sign up to them. Unfortunately, he left the company very soon afterwards and I was given another person to help sell my property.

One doesn't have to scratch far beneath the surface to find the rotting on the inside. Who is replacing these local experts who are 'vanishing' at this time of uncertainty?

[hillofwad] 06/7/2020 11:36

Long neck

"There were some bulls saying this is going to be the next Amazon.... "

They were but that is historic . Door now opened,brand now established

Good TV summer advert campaign
All it needs is some decent management to add some new revenue streams Steady as she goes 70p+ looks very dooable

[hillofwad] 06/7/2020 11:32

Jupiter now own Merian so purely administrative

ACQUISITION OF MERIAN GLOBAL INVESTORS LIMITED BY JUPITER FUND MANAGEMENT PLC
FUND CHANGES

[dennisbergkamp] 06/7/2020 11:21

Jupiter have picked up Mercia's stake here - 17.52%

D