When Purple Bricks launched just over 10 years ago, they were a definite disrupter to the Estate Agency industry. However, now up for sale and with their share price sitting at just 8p thanks to running up huge losses every year, their big vision for creating an Agency based on low, up-front costs, has failed. It has indirectly shone a light on the fact that traditional, High Street Estate Agents are very much worth the fee they charge. Below, Deborah Richards, Founder and Managing Partner at Maddisons Residential in Tunbridge Wells, highlights the differences between an online and local High Street Agent, and shares what the sale of Purple Bricks tells us about the nature of Estate Agency.

A low fee doesn’t give you value for money!

Operating UK-wide, Purple Bricks is one of the largest online Estate Agents. Unlike other Estate Agencies, the organisation has no conventional “shop fronts” to speak of, selling property purely online... However, instead of acting as a third-party platform, displaying properties for sale via other online or High Street Estate Agents, Purple Bricks only lists its own properties. Many sellers are attracted by their competitive fees, particularly when compared to the fees charged by traditional High Street Estate Agents.

Local Estate Agents understand their unique property market

Notably, Purple Bricks featured in an episode of the BBC TV show “Watchdog” back in 2017 where their “local property experts” received criticism for not being “local” at all. Due to this, and because it is such a large organisation, Purple Bricks will not have the same local expertise as their high street counterparts, nor is it likely to offer that personal touch. Our Team at Maddisons in Tunbridge Wells has over 300 years’ worth of local knowledge between us!

Purple Bricks charges a flat fee rather than a percentage of the sale price and unlike traditional Estate Agents, its customers pay the fee regardless of whether the property sold. Research has showed that its sale success rate was just over 51%, which explains why they have run out of houses to sell.

What does this say about the nature of Estate Agency?

Purple Bricks issued a profit warning in February this year and hinted after a strategic review of the business that the sale of the company may become a necessity after new property instructions had taken a nosedive. Many Estate Agents and financial experts had a lot to say about this news, including Andrew Simmonds, director at Bristol-based Parker’s Estate Agents, highlighting Purple Bricks’ ailing business model, in a recent article in The Negotiator.

To conclude…

Most sellers, when selling their most valuable asset want a knowledgeable professional on their side and, by engaging a reputable High Street Agent, and paying a higher fee, you will receive that. Purple Bricks going into liquidation demonstrates that relying solely on an online presence doesn’t work and in fact local property knowledge, face to face interaction and old-fashioned customer is what will make your experience a successful one.

If you are looking to buy, sell or rent a property please get in touch. We would love to offer you our award-winning customer service and excellent market knowledge.