Two and a half years after entering the Australian real estate market with a promise to shake things up, UK fixed-fee agents, Purplebricks, have fallen from grace.
Chairman Paul Pindar’s apology to shareholders for the company’s disappointing performance does little to acknowledge the real reasons why, we believe, fixed-fee models are destined for failure.
We don’t want to say we saw it coming, but the red flags were everywhere… Why would anybody list with an agent who’s incentivised by LISTINGS, rather than SALES?!
Purplebricks Apology to Shareholders – Chairman Paul Pindar
“During the two and a half years that Purplebricks has been operating in Australia, market conditions have become increasingly challenging… This, combined with some execution errors, has resulted in the business not delivering the progress the Board expected. With hindsight, our rate of geographic expansion was too rapid and as a result the quality of execution has suffered.”
Source: News.com.au
Pennisi Real Estate are Real Estate Agents in Essendon, Keilor & Maribyrnong!