The share slump in Purplebricks, leader in the online ‘sell your own home’ market, doesn’t surprise me, nor does its previous meteoric rise.

Purplebricks

Online estate agency Purplebricks announced earlier this year that revenues would come in 5% below expectations and the stock market reacted with a 10.85% fall in share price

Source: Shutterstock/James W Copeland

It tried, on its debut, to compete with the traditional residential agent and with the amount it’s invested in marketing this made it a hot favourite to torpedo the idea of paying large fees for selling flats and houses.

Once advertising gets exhausted, however, reality kicks in. When the dust settles, I suspect the public will turn their backs on online house sellers and use professionals to do the job.

Experience and committed residential sales advisers will still have a place in the world and the same applies to the commercial market as well. It’s service that counts. Clients don’t feel the fees when they achieve a good price.

Anthony Lorenz, managing director, The Lorenz Consultancy

Topics