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Purplebricks Australia has unveiled an advertising campaign led by property expert Barry Du Bois, encouraging Aussies to question the “commission collecting” model, which it says has not changed for 30 years and is only in place to benefit agents.
The national campaign covers television commercials, digital banners and radio spots. It questions whether or not agents deserve to walk away with tens of thousands of dollars by taking a slice of the sale price, as opposed to earning a fixed fee.
Mr Du Bois is Purplebricks’ newly appointed brand ambassador, with more than 30 years’ experience in buying, developing and selling property.
He said that he has become frustrated with real estate’s “commission collecting” model.
“As a nation, we need to challenge the concept of a commission in real estate,” Mr Du Bois said.
“The argument that agents can only do their job well if they are excessively remunerated just doesn’t stack up.
“The commission collecting model hasn’t changed for 30 years at a time when technology has rapidly transformed the industry. Every month, millions of Australians visit realestate.com.au and Domain, so the days of relying on an agent’s black book of contacts are over.”
Pay rise
He said that the commission gravy train has to stop.
“Between 2008 and 2018, it’s estimated that average national house prices increased by approximately 50 per cent, and closer to 70 per cent in Sydney where I live, which has resulted in exorbitant pay rises for agents at a time when wage growth has stagnated for other industries. It’s simply not right and the commission gravy train has to stop.”
Purplebricks Australia CEO Neil Tavender said that independent research conducted by Purplebricks to inform the campaign shows that 70 per cent of Australians would prefer a fair fixed fee as opposed to an “old-fashioned” commission.
He said that the campaign is designed to inform consumers.
“Since launching, we have saved Australians over $50 million in commission fees,” Mr Tavender said.
“This campaign is about educating Australians about the real estate industry’s archaic business model that only benefits agents. We won’t rest until every Australian understands they can sell their home with a fixed fee, get a great result and not fund commission collectors’ lifestyles.”
He said that the pendulum is beginning to swing.
“The market has cooled and, as a result, Australians are more closely examining every aspect of the sale process. The fixed fee proposition is resonating with sellers who want to find different ways to maximise their returns.”
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