Home sellers risk losing money by using Purplebricks – London Wallet

Vendors should weigh up all their options before instructing Purplebricks as they run the risk of losing their money if the property fails to sell, warns the HomeOwners Alliance (HOA).

The HOA points to Purplebricks’ upfront fees; extras packages costing £899 or £1,499, which can prove expensive if a deal falls through.

“You need to do the maths and think about the implication of paying upfront,” said Angela Kerr, director of the HOA.

“A high street estate agent’s fee is payable on completion. So no sale, no fee,” she added.

Kerr accepts that moving home is “ridiculously expensive”, and it is therefore no surprise that people are looking to pay less.

But Kerr questions whether sellers should rely on valuations given by online agents such as Purplebricks.

She told the Mail online: “Our advice to homesellers is not to rely on any online estate agent for an accurate valuation.

“Online estate agents may not have the local knowledge and may rely on online data. So we always advise getting a few local high street estate agents to value your home, alongside valuations you receive from any online agents.

“Your high street agent is likely to know your local housing market better than anyone else so will be well-equipped to give you a realistic valuation.

“Invite at least three agents round to value the property and discuss marketing. If they’re a good salesperson, they may even convince you to use them. But don’t forget to negotiate the fee.”

Sam Mitchell, chief executive of Purplebricks, has defended his firm’s fee structure.

He said: “We think estate agent commission – the percentage of sale price of a home – is a poor way of paying for estate agency services.

“It implies that work by an estate agent differs according to the price of your home, which simply isn’t true.

“The work required to value, list, market and negotiate a home remains similar each time.

“With Purplebricks’ pricing model, customers pay far less than commission via a high street agent on average, and know exactly what they’re paying for.”