Traditional agents secure higher prices than the disruptors
PRDnationwide has released research claiming customers got a better result when they pay the full real estate commission rates.
The PRDnationwide research compared the median sales prices achieved by Purplebricks and online DIY sites like buyMyPlace.com.au and forsalebyowner.au against those achieved by traditional agents in Sydney, Melbourne and Brisbane dating back to 2014.
On average PRDnationwide found that Sydney traditional agents achieved 19.7 percent higher house prices and 3.8 percent higher unit prices,
It found Brisbane traditional agents achieved 8.3 percent higher house prices and 4.2 percent higher unit prices.
Melbourne traditional agents achieved 10 percent higher house and unit prices.
"Overall traditional real estate is achieving higher median prices than disruptors," claimed Diaswati Mardiasmo, national research manager at PRDnationwide.
"Based on this data, it's appropriate to coin the term 'when you pay peanuts - you get monkeys'.
"Although vendors might be paying higher commissions it would appear they are getting much better results under the traditional model and the accountability that it creates," she told The Australian Financial Review.
Ryan Dinsdale, Purplebricks Australia CEO, dismissed the research carried out by its competitors.
"The opinion of our customers is what we focus on as a business. We launched Purplebricks because up until now, Australians haven't had a choice in how they sell their home and we saw a growing demand for a fairer, more transparent offering," Mr Dinsdale told the Australian Financial Review.
"Since we launched in September 2016, we have saved our customers over $5 million in fees and our experts have achieved sales prices our customers are clearly delighted with as they have rated their Purplebricks experience 9.4/10 'Excellent' on independent review site Trustpilot.com.au."
Purplebricks, which does not have real estate offices but does use estate agents, charges a flat fee of $4500-$5500 including marketing and advertising costs. It also provides customers with 24/7 access to their own listing via an online platform that also allows them to engage with potential buyers.
They've recently been attacked by the First National CEO, however Property Observer did notice a recent success in Melbourne when a studio apartment sold for $187,500, the most affordable across the city that weekend.
