Owner and chairman of Century 21 says real estate is not about being cheap.
In the wake of last week's release of a Purplebricks ad which took aim at "conventional" real estate agencies, in an interview with Real Estate Business, Charles Tarbey of Century 21 said that the way Purplebricks represents its fees, and its claim conventional real estate fees haven't changed in 30 years, are "completely wrong":
"That is not correct.
“What they fail to understand is that in the past it was a flat fee administered by institutes and governments, and we didn’t have a choice. And in many cases today that fee would be higher than what the agents have been negotiating for themselves in the past few years."
He stated that reward for effort is the model he believes in.
"I don’t believe in paying a low fee to get a service; I believe in paying the fee that is necessary to get the right job done.
"If I want to go to a surgeon, I’m not going to go to the one that offers a flat fee to come along and get the op done. I’m going to go to the best possible surgeon that can do the job that will give me the most benefit at the other end."
There is nothing ambiguous about this, he said.
"It’s been proven time and time again, particularly with a flat-fee, low-cost model, that the levels of service and follow-up are not the same as an agent that is committed to a process.
"The agents that are committed to getting a good result for their people have got not just the motivation of getting the best possible price because of their fee, but they are also motivated because of their ongoing reputation.
"It’s about getting the right people to give you the right advice and to walk you through, what I believe, particularly in the marketplace that we are in right now, a very difficult and often long process.
"This is not a boom market where an auctioneer stands up and yells out numbers until somebody throws enough money at them. These are days where sellers require an agent who knows what they are doing."