Purplebricks fees under fire from homeowners lobbying group

The HomeOwners Alliance has issued a warning about Purplebricks’ fees saying some vendors lose their money.

If a property seller opts for one of Purplebricks’ extras packages costing £899 or £1,499 it can then prove expensive if a deal falls through.

You need to do the maths and think about the implication of paying upfront.”

Angela Kerr, Director at the HomeOwners Alliance says: “You need to do the maths and think about the implication of paying upfront.

“A high street estate agent’s fee is payable on completion. So no sale, no fee,” she told the Daily Mail online.

“But with an online estate agent like Purplebricks, if you decide to opt for a paid package or add-on optional extras, and your house hasn’t sold by the end of the six-month marketing period, it will be delisted from the portals, you’ll lose that money and you will have to start again from scratch.”

We think estate agent commission … is a poor way of paying for estate agency services.”

Sam Mitchell, CEO at Purplebricks, told the Mail: “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,” he said.

Far less

“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.”

Purplebricks charges extra for a Rightmove listing, with Zoopla included, as well as hosted viewings and mortgage advice.