Unlike traditional real estate agents, who typically have storefronts on the high street, Purplebricks operates in a totally different way. Purplebricks, in its simplest form, is an internet service that advertises homes to potential purchasers without requiring the physical presence or support staff of a brick-and-mortar real estate agency. Comparable to Yopa, House Simple, and Doorsteps, its primary online competitors, this allows it to undercut the prices often charged by middlemen in the UK real estate market.
Many people doubt Purplebricks’ viability because it does not profit from a commission on the sale price of a house. Naturally, there is no up-front fee levied when a home is advertised by a traditional estate agency. Brokerage fees are typically only charged by real estate agents if and when a sale closes. various real estate agencies may have various charges, but all of them work on a “no sale, no fee” basis. The conveyancing solicitor acting on the vendor’s behalf will often pay this charge and any other applicable legal fees out of the proceeds of the sale before continuing with the transaction.
How does Purplebricks make money off of its marketing efforts if it does not follow this business model?
Predetermined, One-Time Costs
Purplebricks charges sellers upfront fees prior to the sale of their home, in contrast to the commissions earned by traditional estate brokers. That being the case, it is imperative that sellers have a firm grasp of the costs involved. The standard fee for an estate agent is a percentage of the sale price, which means that if a higher price is attained, the agent’s commission will increase. Purplebricks, on the other hand, charges a flat, or almost flat, upfront fee regardless of the asking price of the home. Owners of larger, more valuable properties would appreciate the flat-fee model because their rates will typically be lower than the percentage fees charged by rivals.
Purplebricks’ innovative business strategy guarantees it revenue whether or not a buyer ultimately purchases a home. Flat-rate pricing is appealing since it typically results in lower overall costs. However, Purplebricks’ fees would still apply if a sale did not occur because they are owed before the property is even marketed. But if they use Purplebricks’ conveyancing service, sellers can put off paying the upfront charge.
Purplebricks, how much do you charge?
Purplebricks’ listing fee is £899. The so-called flat price is only part of the picture, though. London residents, and those in particular outer boroughs, will be charged a premium. A fee of £1,399 is applied to properties in or near the nation’s capital. Remember that Purplebricks considers this a one-time fee that is non-refundable regardless of whether or not the house sells quickly. You can list your home with Purplebricks for as long as you like, and if your circumstances change, you can remove it from the market and relist it at a later date.
Purplebricks’ valuations are free of charge, but to be fair, so are those of most real estate brokers. It’s important to be aware of any potential additional fees before listing your house with Purplebricks. First, Purplebricks can help you get an energy performance certificate (EPC) for £84 if you need one. In addition, you’ll need to shell up an additional £125 to get a premium listing on Rightmove. If you want to use Rightmove’s featured listings, Purplebricks will charge you an extra £149.
Last but not least, Purplebricks’ ordinary packages do not include any kind of accompanied viewing service. It will cost you £300 to hire an agent to show potential purchasers around your home instead of doing it yourself. The accompanying viewing price is £399, or £416 if the London weighting charging rate applies.
Where Is Your Money Going?
Your home will be shown on popular real estate websites like Rightmove, Zoopla, and PrimeLocation when you join up for Purplebricks’ service. In addition to the sales copy and social media profiles, a floorplan will also be created. In addition, a local manager will handle your account, schedule tours, and negotiate offers. Last but not least, there will be a “For Sale” sign, which is something that not all virtual real estate brokers provide.
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