Purple Bricks Buying fees

eddddy

pinkteapot wrote: »

I can't imagine a house ever being good enough to do this as a buyer!

You would have thought so, but IAMsold is probably the biggest player company in this market, and they claim they sold 3,300 properties like this last year:

Late last year IAMSold revealed that on a £19m turnover in the financial year to the end of October it generated £10.6m for agent partners based on 3,300 completed sales.

https://www.estateagenttoday.co.uk/breaking-news/2019/2/law-firm-warns-over-reservation-fees-in-the-modern-method-of-auction?source=newsticker

As the quote suggests, of the £19m they earned in auction fees (roughly £5.7k per property), they paid £10.6m back to the EAs that referred them (roughly £3.2k per property).


I guess that's why EAs promote them so hard - it's an easy £3.2k fee for doing very little.


edit to add...

But purplebricks don't use IAMsold - they use a company called 'Goto Group'. But I guess it's just as lucrative for purplebricks.