PHOTO: Purplebricks
Purplebricks cleverly promoted that 90 per cent of people who sold through the fair fixed-fee agency would use it again, but it never promoted how many people who didn’t sell through it who would use Purplebricks again.
This is according to Century 21 founder and chairman Charles Tarbey, who added that there are many vendors who were disappointed in the Purplebricks model.
“Although they claimed to seek a lower fee, although not in all cases, those who did not sell through Purplebricks, and again there were many, were left at a distinct disadvantage,” Mr Tarbey told REB.
“Purplebricks in the early days seeking the full fee, marketing fee and commissions or whatever one chooses to name it, upfront, meant that home sellers paid whether they sold or not, and if they did not have the funds, they would generally need to borrow to ‘save’ on the traditional agents commission.”
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