No Surprise That Purplebricks Is Exiting Australia
Commentary by Jack Brukarz and Stefano Pribac
Purplebricks has announced that it will exit the Australian market. According to Vic Darvey, Purplebricks Group CEO, Purplebricks will manage the process of closing down the Australian business over the next few months. The fair fixed-fee network opened its doors in Australia two and half years ago with a stir and much controversy at the time.
There are a number of factors contributing to the exit of Purple Bricks from the Australian market.
However, the number one factor is that the Australian consumer still demands and expects full service from its estate agents, notwithstanding its desire to seek low commissions. The fee charged by an agent generally reflects their level of skill. The lower the fee, the less competent the agent and the poorer the level of service.
The sale of residential property, especially in a tough market, is a complex and often delicate exercise requiring knowledge and strong relationship abilities. Gone are the days when a vendor could erect a sign at the front of the property and get a satisfactory outcome.
We are delighted that Aussie vendors have come to this realization so speedily and will now choose an agent based on sensible criteria rather than simply on low fees.
The alternative is to be penny wise and pound foolish, by saving a few thousand on commission and losing tens of thousands on the sale price.
Jack Brukarz – CEO
If you’d tell me Ray White, LJ Hooker, Barry Plant or even realestate.com.au have closed, well, I’d be excited. Purple Bricks? No, no surprise and not even a big deal. A concept that operates when the market is hot and leaves when times are tough demonstrates a lot about their business model. We might see them coming back when the market turns, because this is what the market does and they might be called Yellow Bricks, Maroon Bricks or else, but also then, in my view, no surprise and not a big deal.
Stefano Pribac – Sales Consultant
For more information about Purplebricks exiting the Australian Market, please visit the link below.