If you’re a Real Estate Agent in Western Australia, it would be of no shock to you that today Purple Bricks announced they will no longer accept new clients in Australia – and I think I’ve pinned down why this has eventuated.
True Real Estate Agents are Marketers and Negotiators by trade.
A local expert agent will understand no property is the same and no sale is the same, having a “one size fits all” approach to selling a home is just inappropriate. This is exactly the business model PB employed. They offered a discount fee for listing your home (notice I said listing, and not selling).
It is no secret, the word commission in the property industry triggers an emotional reaction from most. It is an industry built on trust between clients with a personalised level of service being expected. Trying to eliminate this commission attracted interest to the PB business initially, but the level of service provided quickly proved why a commission is fundamental.
3 Quick reasons:
- Purple Bricks employed a “one size fits all” approach to marketing a property. Every property is different and every owners situation is different, as such- the same strategy will not always work. The avenues they marketed a property were simplistic and lacked the innovation/creativity needed in the down Perth market to achieve a sale.
- Lack of personalised service. Selling a home is a journey, no two journeys are the same and every time you take this journey- it will be a new and fresh experience. Having and agent handle this process whom is active in the area will give you inside access to what is working and what is not working. This Agent can also give you the advice needed to achieve your desired result.
- Very little deal making / negotiating. What I have learnt from my time in the industry is that a deal does not come together because you want it to, you have to wiggle it together through strategic thinking and clever negotiating. This is, in my opinion, the secret sauce to what separates a “good” and a “great” Agent.
Don’t get me wrong, The Real Estate industry as a whole needs change. However I feel for these reasons, the Purple Bricks model didn’t fly in the Australian but more specifically Perth market place.