Purplebricks now lets customers sell their home "for free"

This is an aggressive move from Purplebricks, a major brand in online estate agency that hasn't been without their troubles this year, but all the same, this will certainly grab headlines. They are intent on piling pressure on paid estate agencies who will struggle to compete on the back of an already tough year. OK, so what they are offering is no doubt an entry-level package that can be upsold to a more "comprehensive" service, but it is positioned as a service sufficient to sell a property. Service enhancements include better image representation of the property and a fully managed sale. Purplebricks are looking to monetise other aspects of the home buying process such as mortgage sales, Energy Performance Certification and conveyancing, and further cashing in on advertising space for ancillary services such as removal services, utilities and telecoms. Altogether, it is a good deal for home sellers, but what are the catches? I would expect a strong uptake on a trusted brand.

This is pretty much the last chance saloon for Purplebricks. A model that has failed is now well and truly clutching at straws. How on earth it will make money by not charging for its primary service is anyone's guess. Will it simply use conditional selling to force the use of 3rd party services to make any form of revenue?

They're calling themselves the kings of the property game, selling your homes without a single penny out of your pocket.
How can they offer a service that's as free as the birds? There's no such thing as a free lunch, not in the property world, that's for sure. If they're not charging upfront, there's a catch, a hidden fee lurking in the shadows, waiting to pounce on unsuspecting homeowners like a sly cat. They're offering a basic package, they say, with a valuation, negotiation, listing, and an app to control the show. Well, that's all well and good, but what about the extras? The professional photos, the open house arrangements, the marketing blitz that makes your home stand out from the crowd? Those don't come cheap, and Purplebricks is trying to make you believe they're included when they're not. They're charming you with their words, making you believe they're doing you a favour, when all they're doing is lining their pockets.

This model of low or no fees to sell property, relying upon extras and commission payments to balance the books, will only end in one way, unfortunately. There are a small number of potential vendors who will revel in this low-cost model, but I think we have seen over the last few years that local agents can impart more knowledge and support, organise better quality marketing and liaise with all parties involved much better, and typically they will justify their fee with an improved sale price. Strike and Purplebricks had an extremely slippery slope to face already, and this move is only going to make that tougher.