The risk of low-cost fixed fees
Purplebricks, was a UK-based company founded in 2012 that promised risk low-cost fixed fees previously been valued at £1.4 billion, but was sold for £1 on the 16th of May 2023.
Purplebricks disrupted the traditional estate agency market by offering low-cost fixed fees to sellers and operating solely online, so that reduce expensive physical branches.
However, the company’s shares have declined significantly, resulting in a current valuation of approximately £4 million. The news of the sale caused a 46% drop in share prices to 0.8p, compared to their peak of over 500p per share in 2017.
Over time, sellers realized that choosing the cheapest agent might not yield the best results, because it meant selling their house for thousands less.
They recognized the importance of effective marketing and wide exposure of their property on multiple platforms, evidently reaching a larger pool of potential buyers and engaging with knowledgeable sales agents in a professional setting to maximize their returns. The sale of Purplebricks is contingent upon a shareholder vote.
The risk of low-cost fixed fees promised for some agencies, for example, working with commissions of 2,5%, sometimes result in less exposure of your proprety.
As a result, instead of be a right shoot, could result a shoot in your own foot.
If you want to sell a property, trust in quality and in those who really work for you.
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