A friend of mine sent me a link to an online forum where people were complaining about the fees charged by traditional real estate agents; they believed that Purple Bricks offered a much better deal.
The problem with this blanket opinion is that it gives the impression that Purple Bricks sells your home for free! The reality is far different, because Purple Bricks charges an upfront, non-negotiable and non-refundable fee that you have to pay even if your home doesn’t sell.
Then they make you pay even more money when it does sell. Let’s take a look at their fee structure and compare it with a more traditional commission structure, so you can make an informed decision for yourself.
What commissions does Purple Bricks charge?
Purple Bricks operates on a flat fee pricing model, not a commission structure – which you are probably used to in Australia. Initially, you must pay a flat fee of $4400 upfront to list and publish the sale of your property with Purple Bricks.
When you home sells, you pay another $4400 at settlement. So to sell your home with Purple Bricks you pay $8800. I agree that this is usually less than the average commission you would pay to a traditional real estate agency, but to achieve these low fees, Purple Bricks makes you do most of the work yourself and might not get top price for your home.
Compared with an agent’s commission of around $12,000, it doesn’t seem like a great idea to save $4400 if you are getting $25,000 LESS from your sale price. Essentially, Purple Brick’s business model is a far cry from the full-service you receive from a traditional real estate agent, who supports you every step of the way through the entire selling process. If you want an experienced full-service agency to help sell your home, call me on 0418 645 506 or send me an email today.