Opting for an online estate agent as opposed to a high street one comes with its pros and cons, but recent research suggests that sellers might be more likely to see a sale through to completion with Purplebricks.
Investec Bank has revealed through research completed by VIGA that of all the properties listed with online agent Purplebricks, 76% are successfully sold, which is higher than the UK national average. Of the remaining 24% that didn’t sell, 42% were taken off the market, while 34% were sold by another agent and 10% of sales fell through.
Purplebricks has been in the spotlight recently due to its ongoing row with investment firm Jefferies who claimed earlier this year that the agent actually sold only 51.6% of the properties that were listed in November 2016 within 10 months. However, the latest research, according to Purplebricks, proves that this accusation was false.
More convenient for customers
Customers saved more than £100m last year by using the Purplebricks fixed fee model instead of the commission-based rates charged by high street agents, according to the company, and the increased competition in the industry had forced high street agents to reduce their commission rates in 2014.
Lee Wainwright, UK CEO of Purplebricks, said: “It is no surprise that more and more people are turning to hybrid estate agents. The transparency, convenience and potential savings on hefty commission rates makes the decision a smart choice. The way that people buy and sell property has changed.
“People want the personal service of Local Property Experts in combination with great technology so they can transparently and conveniently interact and see everything that is happening 24/7.”
No sale, no fee
Another popular online estate agent, HouseSimple, has also just become a “no sale, no fee” agency and is believed to be the only one operating in this manner. The firm will now be charging sellers a fixed fee of £995 including VAT once the sale has completed.
Sam Mitchell, chief executive of HouseSimple, said: “Every single person in our organisation has a laser beam focus on selling properties. We also want to provide real clarity of proposition for our customers and believe the best way to do this is to offer one simple proposition; a No Sale No Fee service. This ensures we are completely aligned with our vendors’ objectives.”
