As kids, we all heard the story of Pinocchio. Every time he lied his nose would grow. Much of the public believe that real estate agents are direct descendants of Pinocchio. This is not surprising. However, what never ceases to surprise me is those who claim integrity and honesty are those who really are the Pinocchios.
Purple Brick has been pummeling the airwaves with advertisements. They hit the market indicating that they were bringing a higher level of integrity and honesty to the marketplace and would not take a commission for selling a property. After watching a number of their ads on Saturday, I was impressed that Pinocchio had found his way into Purple Brick.
At present, they are advertising that they are real agents selling real property and you don’t have to pay commission to them. That’s true in a way, but is totally misleading. Yes, consumers do not have to pay commission on the sale of the property. It is also true that the consumer does not have to pay Purple Brick a fee based on a percentage of the selling price. What is not true is that Purple Brick do not claim commission or a fee for sale of a property.
Recently, two clients of mine have utilised Purple Brick to sell their properties. They were unimpressed that they had to pay $5,500 upfront. Yes, it was cheaper, but there was no incentive for Purple Brick to sell the property. Once they had the money, the consumer had to pray that the professionalism of the person would ensure that the property was sold at the best possible price.
It is untrue for Purple Brick to claim there is no commission or fee in relation to selling the property. You pay them $5,500 and you appoint them to market and sell your property. It is misleading to say that you don’t pay any commission. This is clearly bait advertising and is deliberately designed to entice people to list with Purple Brick.
We encourage people to provide the market with different options. Leverage operates regularly to promote, advance and develop innovative products. It is unfair when one organisation holds itself out to have more integrity than another, when their advertising does exactly what it promises it won’t do.
This article was written by Bailey Compton, Principal Solicitor & Director at Leverage Group.
To get in touch with Bailey, please email email@example.com or call 1300 438 538