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If you’re looking to sell your home and want the most efficient and streamlined service to do it for you, then look no further than Purplebricks. The UK-based online real estate agency covers almost all aspects of selling your home which includes finding a local agent to appraise your home, a marketing and advertising team to post your property online and a professional to deal with your home’s photography.

 
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All you’re left with is needing to deal with the legal side of things once the service finds you a buyer.

 

Why is it better than an agent?

As reported by news.com.au every year real estate agents collect more than $7 billion every year from Australians in commission for selling their homes, and Purplebricks is looking to undercut this and put that money right back into the pockets of homeowners.

The entire basis of the service is that it can sell your home for far lower fees than what a real estate agent will charge. The company points out that real estate agents are charging and absorbing far more in commissions than they should be, and this is a contributing factor behind the affordability crisis in Australia’s capital cities. Homeowners want to offset the fees taken by their agents, and agents want to boost their commissions to as high as possible.

Purplebricks is boasting that it can sell your home privately for fees of just $4,999 or at auction for $7,369 — far lower than typical agent fees of $14,000 to $18,000 average seen across Australia.

 

How do you use it?

Purplebricks works by utilising remote workplaces and connecting all the staff and personnel required to sell a home efficiently, which includes their own Local Property Expert. This property expert is similar to a local real estate agent, though they don’t need to have an office, they simply arrive at your home for all planning and communicates and therefore drop the additional fees for requiring an office, saving you money.

Steps
Your first step will be to contact Purplebricks online to have a hands-on and in-person appraisal by one of Purple Brick’s own local agents. This will give you, the seller, an overview of what your property is likely to sell for and if you are ready to go ahead and use Purplebricks as your agent.

If you decide that you want to go ahead with Purplebricks then the whole process begins. You’ll be charged $4,999 or $7,369 depending on whether you want to private sell or auction your property.

The fee is charged regardless of whether the property is sold or not.

Once the process has begun, your home will be photographed and have its description drafted up, as well as floorplans designed for online advertising. You’ll be asked about each of these matters along the way and you get to have the final say and control over what is posted online or said about the property in its listing.

When your property’s listing begins to get offers, you’ll have access to a Remote Sales Assistant who will guide you through whether the offer is acceptable and in line with market value, and how to accept it. Typically offers are sent exclusively through the Purplebricks website.

Once a seller has decided that the offer they have been given is acceptable and they wish to proceed with the sale Purplebricks will give some of the assistance required, like who to contact for conveyancing. Though it’s important to keep in mind that the legal side of things, including the majority of the post-sale procedures, are left up to the seller to deal with, either alone or by their lawyer.

 

What’s covered and what isn’t?

The entire advertising and marketing process is basically covered by Purplebricks, so you don’t need to do anything particularly difficult for the entire advertising portion of your listing. The staff and remote workers from Purplebricks deal with a number of things including:

  • Professionally photographing your home
  • Drafting a floorplan and description of your home for digital marketing
  • Getting your listing posted on major Australian real estate websites, like Domain and realestate.com.au
  • Assistance with after-sales and sales information if you’ve been given an offer and even after you’ve accepted the offer
  • Contacting a qualified auctioneer

The seller is required to do a number of tasks on their own, so keep that in mind. The majority of these tasks come after the sale has been finalised, or right after an offer has been accepted.

A few of the tasks that the seller is required to undertake are listed below:

  • Having a lawyers information posted to Purplebricks within 24 hours of an accepted offer
  • Making sure that the buyer’s lender/bank is able to go ahead with the loan
  • Giving all the required paperwork and information to the lawyer
  • Agreeing to settlement and exchange dates
  • Keeping up with the lawyer and their progress

The seller’s lawyer or conveyancer is required to go over the following:

  • Making sure that both the seller and the buyer have all the correct bank information
  • Giving all inspection, strata reports and pest report information to the buyer
  • Speaking with the buyer’s lawyer
  • Determine a settlement date

Purplebricks and their team is in control of the following:

  • Reminding the seller to upload their lawyer’s info to the site
  • Making sure all loan arrangements are ready
  • Supporting the seller with any information regarding pest reports, building reports and mortgage positions

With all of that said, it’s important that buyers and sellers make sure to brush up on a number of those required tasks as they will have an effect on the ability of the sale as well as the outcome of the sale. If some workflows aren’t completed entirely correctly or on time there is a risk of a buyer being left liable for certain issues, or a seller being unable to easily approve and transfer ownership of the property.

 

Who is Purplebricks designed for?

The service is developed for sellers who want to bypass high real estate agent fees and for those who are capable of dealing with a few of the major duties when selling a home on their own. It’s simply an easier, more efficient and far cheaper service for sellers to use and at times when the market is right, the returns can be so much higher than if an agent were to be taking more than 4% in commissions.

Currently, more than 5% of sellers in the UK use the service to sell their homes and growth hasn’t shown any signs of slowing in the recent months and Australians are expected to take well to the service. With its streamlined approach and more affordable services, the Australian market is set to greatly benefit from Purplebricks. Issues of underperforming sales from overseas are less likely to be an issue in the Australian property market due to its fast-paced nature and high demand from international buyers.

 

Which teams work for you?

Purplebricks streamlines almost all of the selling procedures by utilising remote agents and remote teams to get all of the work done as affordably and efficiently as possible, this is why the majority of contact is done online rather than in an office.

Appraisal agents are locally sourced though and have all of the accreditation and certification required to work in the real estate field and assist you in selling your home. The other teams who work on your home’s marketing and advertising materials are your remote workers and they remain solely online.

The service can be described as a ‘hybrid’ as there are a few workflows and duties that require an agent to physically inspect a home to conduct appraisals first hand to ensure everything is primed and ready for the sale process to begin. This is also required by local and state laws. So, half of your team works online and the others offline.

 

Sellers & Buyers

Want to sell?

If you’re looking to sell your home and don’t want to lose up to $14,000 in commissions to a traditional real estate agent and want to have a more streamlined and efficient process to selling your home, then Purplebricks is the answer you’ve been looking for.

But first be sure to check if there is a local agent in your area who is able to work hands-on with you to sell your property and that you’ve made sure that you know all the required legal steps to selling your home after you’ve accepted an offer as Purplebricks cannot assist with every step of the legal process.

Want to buy?

Buyers who are looking to purchase a home through Purplebricks can do so by searching through the Purplebricks website and organising a viewing of the property right from the homes web page. The website will also have all of the information you expect on the property, like its brochures, the ability to make an offer or to message the seller and ask any property related questions.

 

Some things to remember

The fee is charged regardless
As all of the contractors, agents and marketing teams need to be paid regardless of a sale for the business model to work, your fee is charged regardless of whether or not your home sells. Typically an upfront agent fee is a red flag, though as the Purplebricks fee isn’t as high as typical fees the fee is charged upfront.

All workflows are charged
All of the tasks completed by both remote and local teams are required to be paid for upfront. This is based on the fact that Purplebricks basically works as a listing service, not as a broker. The service that you’re paying for is the appraisal, listing, marketing and monitoring of your home, rather than the actual sale of the house. Therefore, all staff and teams are paid upfront.

Purplebricks isn’t very well rated
Although the company has some pretty great recommendations and a solid background history and is shaking up the real estate market across the world – the overall response from customers and service users isn’t as good as a typical real estate agency. Their Local Property Experts are reported as being provided low incomes and that means they need to work multiple clients at one time, leaving less time to focus on one client.

The company is also reported as hiring as many agents as possible, regardless of their experience and background in the industry, which can result in poor advice for your situation.

Only 14% of homes sell
There have also been disputes from marketing watchdog and overseers of the company’s results. On many sites, you’ll find that Purplebricks sells 77% of their listings, but according to analyst reports the number is actually closer to 14%.

 

The service and its future.

As the service has only just begun to trickle into the Australian market, it is yet to fully catch on and really disrupt the industry like it’s done in the UK. Though it still has a lot of promise. It streamlines the process for everyone and puts the authority of selling a home back into the hands of the owner, as well as the extra commissions.

It’s a service that promises savings and delivers on those promises. The service also does its best to assist with as much as possible from a remote environment so you won’t need to worry about doing everything yourself — the only thing really left up to you is the post-sale duties, which you would want to be a part of regardless of who is selling your home.

Following its arrival in Australia, the service has shown unstoppable growth and saved Australians more than $20 million in commissions so far. Therefore if you’re looking for a service that puts the seller first and money back into the pockets of the homeowner, then Purplebricks is the best service for you to use to sell your home.

 
 

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