03.01.2019 at 02:09
image description

Purple Bricks Makes Predictions For The New Year

Neil Tavender, CEO of Purple Bricks Australia, has been making prognostications for 2019.

According to Mr Tavender, the coming year will bring some industry consolidation and branch closures.

This seems like an easy prediction to make, given the current state of the market.

Mr Tavender even mentioned an agent we wrote about back in September:

"In fact, one Melbourne-based agent ... was even offering zero per cent commission as they looked to drum up business.

"I expect this pressure to continue in 2019, culminating in traditional agents lowering their commission rates, which in some cases have been extortionately high through the property boom."

While there may be some adjustments to commissions to account for a slower market, we have doubts that many agents will be completely doing without commissions.

Mr Tavender also said there would be "stabilisation" in property prices. By this he apparently means a slowdown or cessation of falling prices.

"By the spring sale season next year, we predict we will have seen the worst of the price drop. At this point, we may see first home owners re-entering the market looking for a bargain.

"First and foremost, we need to see more transparent commissions from traditional agents.

"Too often we hear stories where more affluent sellers are stung with a higher commission rate because agents think they can get away with it. Put simply, the same agent shouldn’t be handing out different rates to different sellers."

Again, this seems rather easy to say for the head of a company that charges fixed rates. Even if they are nearly double what they were when the company started in Australia some 2+ years ago.

Tavender said the industry should also concentrate more on technology.

"For example, with the my Purplebricks platform, you can view offers, review feedback and gauge buyer interest 24/7. This creates complete visibility of your campaign, enables you to respond directly to offers and ensures that you don’t miss out on a potential sale.
 
“If other agents were more transparent via technology, the industry would be in a better place."


If you are not yet subscribed to PropertyNerd News, you can subscribe here. Or share the link with your friends and colleagues.


Don't forget to follow PropertyNerd on Facebook and Twitter, or catch us on LinkedIn. And if you would like to leave us some feedback, contact us here.

Nerd light text