A long-standing analyst of property portals and websites worldwide has included Rightmove, Purplebricks and easyProperty in a list of 10 sites to watch - shortlisted from between 8,000 and 10,000 contenders.
Simon Baker, a former chief executive of the Australian REA Group property digital marketing company, says up to 10,000 real estate sites now exist worldwide but 10 stand out particularly, typically because of the prospective success of their business models.
Baker cites Rightmove as the strongest example to watch because of “its simply pay-to-list low cost operation” with a business model that “doesn’t get distracted but stays focussed on delivering good value to its audience.”
Later in his list, Purplebricks and easyProperty are described like this: “Although they may not be winners in the market ... their models are the way of the future.”
He goes into more detail saying: “The younger generation doesn’t want to pay a two per cent commission when they could sell their own house. They feel comfortable buying products online, even making movies, so they feel just as comfortable buying and selling property. The kind of model where you pay a Purplebricks to market and help you out with compliance while the user does the rest will work - and it’s the future.”
Baker was writing on the Propertyportalwatch website.
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Simon is well respected. But he's wrong on this one. Purple and Easy have had huge funds thrown in from VCs. Their model isnt so much agency as fund raising.
The flaw is that budgets need say £500 to pay for a listing. So £698/798/999 models make little profit.
With more lower cost budgets. Ie sell for £99 / 199 / 299. Its hard to pay for FS boards, EPCs, some joker going round etc.
Basically the more recent budgets will pitch we'll save you £100's on the PB, EASY, eMoves and so on fees.
When the VC funds run out. Bye bye.
Weve done various case studies in recent months of doing more for 1 / 2% fees to sub out and in cases make vendors £40-50k more than cheap fee lone agency.
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