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Purplebricks markets itself as ‘more affordable’ agency option

Purplebricks is marketing itself as a way for homeowners to save money while selling their home amid the cost of living crisis.

In a release likely to frustrate high street agents, the brand claims it is a more “affordable option” as it could cost an average of £6,592 to sell a property through a conventional estate agency.

A spokesperson said the figure is based on an average taken from a "guesstimate" by the 2,000 people surveyed.


However, the brand's own online calculator shows sellers using its fixed fee service of £1,199 would only get that saving on the sale of a £550,000 property, based on an agency fee of 1.2%.

The average UK house price is currently £294,559, according to the Land Registry.

Sellers in the same scenario would actually be offered a lower £3,540 saving, which drops to £2,950 on a 1% agency fee.

That is still a saving but there is also the additional risk that Purplebricks sellers have to pay upfront even if the property doesn’t sell.

It comes as research by the online agent claims the cost of living crisis is having an impact on the property market, with 79% of homeowners saying that their priorities have changed when it comes to selling their home and buying another.

A quarter said they were more likely to list their home and buy another in 2023, with 55% preferring to list their home for sale in the Spring.

Changing priorities for homeowners included 18% spending less on a new property than planned and 6% selecting a new property which is more of a project than they’d normally choose.
Another half said that they were planning to stay put because of the cost of moving.

The analysis then claims that sellers believe it would cost an average of £6,592 to sell their home with a conventional high-street estate agent, at which point Purplebricks highlights its fixed fees.

Tom Greenacre, managing director of Purplebricks, said: “It’s understandable that people are nervous about the cost of selling their home and moving house given the cost of living crisis – but they don’t have to be. 

“Buying a new home in a cheaper area or downsizing where children may have left home, for example, might leave you better off. And listing now, or very early in the New Year, could mean that you beat the crowd.”

  • Samantha Sullivan

    May aswel shut down my old territory with those fees! Higher than other agents in this area. No savings made and they have to pay whether it sells or not which doesn't work when you have Agents who are still over valuing to win business. A bit of a stinger on month 10 when it's still not sold, that's not helping the cost of living crisis whatsoever.

  • Chris Arnold

    If the message is “more affordable ", there is always the unfortunately named, at present, Strike.
    Do PB marketing team have any strategy, or is it off-the-cuff soundbites?

  • icon

    Tom Greenacre, MD of Purplebricks, said: “It’s understandable that people are nervous about the cost of selling their home and moving house given the cost-of-living crisis – but they don’t have to be.

    No, far better to hike your prices 50% during a cost of living crisis and ask people for £3k+ whether they sell or not. Compare this with a fee from an agent paid from proceeds of sale. In many parts of the UK, £3k is more than proper agents charge on a no sale no fee basis.

    A very misjudged policy.

  • Maurice Kilbride

    Purple Bricks never learn, hence why they are in such a predicament. With the market having turned so quickly, less sellers than ever will want to pay upfront.

  • jeremy clarke

    What continues to amaze me is that these spokespersons and directors of this company still believe everything that they say!

  • Andrew Stanton PROPTECH-PR A Consultancy for Proptech Founders

    Trading at only 8.84p a share, at its height share price was 500.00p a share, and when it opened it initial value was 94.5p in 2015. Companies listed on AIM or the full LSE are judged by their performance, I guess the pundits are saying that the new CEO has failed to instil confidence, and the group court action that is due in 2023 may be the final act.

    When 50 new points are added tomorrow by the BoE, and mortgages have effectively doubled, 2023 will be the year of icy headwinds to a business built on upfront cash from listings, less movers means less instructions coming to market.

  • David Bennett

    I keep hearing high street agents complaining that chain chasing through PB, is non existent. I know of several agents that refuse to deal with a potential buyer, if they are in a PB chain. High street agents need to point out to sellers that 90% of the sale from accepted offer to Completion, is where they do the work and really earn their commission. PB are still just a listing model, leaving sale chasing to everyone else. It is what PB don't promote that needs calling out.


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