Purplebricks Share Discussion Threads

[duncan doughnut] 14/2/2016 16:23

I don't know what ancient world you live in but people interested in buying a house go to Rightmove first these days. We have the internet, people use mobiles. I suppose you are sat at home waiting for your local agent to send you printed detail in an envelope with a stamp. That is not how 95% of the world works in 2016.

[hillofwad] 14/2/2016 16:07

If you stretch your arguement further there is no need for any agent ,property advice at all and that includes purplebricks Righmove/Zoopla can offer you their platform as a private seller for an all in advertising fee of £250 and save yourself £750 as well .It only suits thsoe who are particuarly knowledgeable about proeprty Most agents will reduce their fees on a sole agency basis The situation you describe of the buyer assumes that he has started his house search on the portal purplebricks have advertised on behalf of the buyer. More often that not especially outside London they will approach local agents first in ther house search or see an agents board on the property and if they are worth their salt will have offered the property to the the buyer has chosen toput on the market with purplelebricks as well The fact that the buyer sees the property on purplebricks later on their portal or Rightmove and chooses to negotiate with the seller direct as you say hopefully to reduce the price doesnt negate the fact that the agent can come looking for his fee from the seller after the sale as he can show that it was his introduction that started the ball rolling which will be spelt out when the seller instructs him -an effective introduction which will stand up to test in court You definitely sound like someone I wouldnt want to buy a house from

[duncan doughnut] 14/2/2016 15:15

you show a degree of ignorance hillofwad.

Many houses are listed by more than one agent on Rightmove.

And as for agent's fees - the agent is only entitled to a fee if the buyers first point of contact with the seller was through that agent. If the seller is contacted via Purple Bricks they owe any other agent nothing unless they have signed up to an exclusive deal. Why would anyone seeing a house on Rightmove with a regular agent and PB then go for the regular agent?

For instance, near where I live:

hxxp://www.rightmove.co.uk/property-for-sale/property-39135402.html

hxxps://www.purplebricks.com/for-sale/53413/1-bedroom-flat-london/#

If the buyer visits via PB the seller has an extra £9k to negotiate with and will have to pay the regular agent zilch.

The regular agent's days are over.

[hillofwad] 14/2/2016 12:37

More importantly if I as a buyer then get encouraged to deal direct so the vendor to avoid the fee and sharein the "saving" -my immediate reaction will be if he is trying to stitch the agent up before we start what is he going to be trying to do with me ?

[hillofwad] 14/2/2016 12:04

Doughnut If thats your point as most agents are on the property portals in any event by listing with purplebricks you are then its likely to be listing the same property twice on the same portal Any buyer will then assume you are desperate to sell and chip you more than any saving in fees In addition the existing estate agent will see you have advertised it on purplebricks and watching it like a hawk The buyer will have more than likley to have been in contact with your agent as well and probably have a record of the enquiry and sending them the details and then pursue you through the court for the payment of his fee on his effective introduction of the buyer So if you think double lsiting is going to be a major source of Purpelbricks revnue outside London then I think you are sadly mistaken

[duncan doughnut] 14/2/2016 11:17

The point is being missed. You can use Purple Bricks for £1k and get on all the big property portals like Rightmove and Zoopla. It almost pays to be on PB as well as a regular estate agent in the chance that anyone seeing your house on Rightmove say, comes direct to the owner via PB rather than go via the regular agents as they will know the home owner will have geater room for price negotiation if not paying 2-3% commission.

[dresdenis] 13/2/2016 09:53

I like your distinction Moop Doom. The problem with valuations of sentiment is that when the fashion for 'tulips' fades ... there is nothing left . There has to be some intrinsic value. hillofwad and I will be waiting for the figures on this one before the value is revealed.If blueball is right these brick could tumble from a great height.

[blueball] 13/2/2016 09:38

I reckon 200p plus sometime this year.

[hillofwad] 13/2/2016 09:08

Missing the point Moopy Nothing wrong with disruptive technology it will serve to benefit the consumer and reduce fees Its just that I dont see Pile of bricks -Hybrid as a game changer If Rightmove and Zoopla offer a similar private vendor service all the seller needs to do is to conduct a beauty parade of local esate agents for free valuations get a firm steer on value and list accordingly at probably half the cost The LPE is neither fish nor fowl. If you think somehow pile of bricks is going to drive ahuge wedge and take out all the competitionand takeon over 8000 new instructions per month good luck to you Im looking forward to taking a short not just yet wait for you to fill your boots

[moopdoom] 12/2/2016 20:02

True. And like saving cash, too. P&L is a purifier; fools easily separated from their cash, etc.And what a lot don't realise is that it's not about what something is worth but what people are willing to pay. Huge distinction.Good luck to 'em being short this.

[dt1010] 12/2/2016 19:33

None of us know for sure.

What is for certain is that everyone HATES ESTATE AGENTS

[moopdoom] 12/2/2016 19:11

"Pay for what you get."You sound like a black cab driver on Uber. Or any other sufferer to disruptive technology.You're a dinosaur. And we know what happened to them.Good luck with your short, buddy. Money's starting to chase this name. You'll probably need it.

[dresdenis] 12/2/2016 15:42

Hillofwad
Your 'spegging' a bit inaccurate but not your analysis.When vendors realise that this is just a listing service it will fall like a ton of ...

[hillofwad] 12/2/2016 14:18

scuse spegging!!!!

[hillofwad] 12/2/2016 14:17

Just undertaken a search and put 10 miles radius of the place 4 properties came up and they are all over 35 miles away!!! I hav eserious reservations that in a difficult market amrket how many vendors are going to be happy paying up front when they ahv ebeen used to no hay no pay or instead pay an inflated feet to use their conveyancer Room in the market for pile of bricks but they arent life changers

[hillofwad] 12/2/2016 14:07

DTS No but in the property game and worked with many agents. Plenty of bad ones who dont earn their fees stick a board up and sit back give poor advice and a bad service and dont even bother to negotiate and I think thats all pile of bricks will do Very unimpressed with the 2 LPES I have spoken to
We are just about to move into a different market when you need to be on your toes and a good agent will make or save you money Like anyone else I dont want to give away fees unnecessarily but as with most things in life you pay for what you get

[moopdoom] 11/2/2016 22:50

Held up remarkably well given broader market performance. Encouraging.

[dt1010] 11/2/2016 18:58

Hillofwad lol ~ I bet you you're an agent huh?

[hillofwad] 07/2/2016 11:25

The estate agency world has welcomed Rightmove and joined up seeing it as another platform to advertise their wares . Yes high costs of entry to compete with pile of bricks but they arent ebay Rightmove could also offer a private vendor service Pile of bricks make a great play on their "hybrid" model . Their LPEs are anything but mines 50 miles away and had hardly heard of the village I dont think a couple of weeks training for an ex mobile phone salesman ticks all the boxes to someone hamdling your prime asset What happens in a poor market when you need every skill and trick in the book to sell your property which is likley to be the case when pileof bricks are likey to hit some profits The fee will be irrelevant

[duncan doughnut] 06/2/2016 16:52

hillofwad:

"Old Mutual must be assuming that the whole of the estate agency world is going to sit back and let pile of bricks take all their clients"

That was said about Rightmove when they started out but it never happened. Estate Agents are dinosaurs not innovators in the main. It took them 20 years to start their own site to compete with Righmove by which time it was way too late.

First mover advantage - that's why Old Mutual are in for nearly 8% and Neil Woodford holds 29%.

hxxp://news.sky.com/story/1514741/city-star-woodford-raises-bet-on-purplebricks

[moopdoom] 06/2/2016 10:21

Hillo,The problem for them is their established and fixed cost structures that are entrenched within their model. Difficult to change without heavy initial costs.PB already has what they would need to do to win back the market share the new model gaining.Over the last two weeks there have been updates from both models: FOXT, PUPR. FOXT got sold, PURP >20%. Market's initial reaction is clear.

[hillofwad] 06/2/2016 07:58

Old Mutual must be assuming that the whole of the estate agency world is going to sit back and let pile of bricks take all their clients. As soon as the Housing Market changes most vendors will realise to sell a house is slightly more sophisticated than an advert and a hand hold from their mythical beast the LPE

[gargleblaster] 05/2/2016 21:49

With a big purchase of that size, one would hope that Old Mutual have done their due diligence!

[moopdoom] 05/2/2016 19:01

Good to see a big buyer reported, crossing 7%; decreasing free float synthetically assuming their horizon is long. Conditions building for this as a momentum stock. Still very early days though.