Purplebricks has recently been joining other property disruptors in putting pressure on fees in the market. Many analysts see this as a bad move, with Motley Fool listing the company as a “sell” stock. However, many also see this as good publicity.
Many consumers wish to spend less money, and with Purplebricks’ fixed rates and low fees, the company has sold many more pieces of real estate than previously thought. Estimates project around 1.1 billion USD worth of property has been sold by Purplebricks.
“Many of the old dinosaurs in the industry are not prepared for [disruption] or have no idea how to deal with it,” says Melbourne buyers’ agent David Morrell.
Some analysts are still trying to figure out the truth, however, as Motley Fool has pointed out that Purplebricks has yet to release their full sales.
“In its latest results, Purplebricks omitted two numbers it had routinely published previously that enabled the aforementioned estimate of average sale price. Conversion from instruction to sale agreed (which had been climbing and reached 83% in the last full year) was entirely absent from the recent H1 results. As was a corresponding figure for the full-year: “Sale agreed in the UK every 9 minutes 24/7.
In either case, Purplebricks is shaking things up. It’s just unknown to what extent.