Purple Agents say goodbye to 6% commissions

By
Real Estate Agent with DeLex Realty

I recently read an article about a new company, Purple Bricks. 

Purple Bricks is a flat fee brokerage that performed well in Europe and recently opened an office in L.A. The title of the article was "Say goodbye to 6% commissions". Obviously, the article predicted Purple Brick and others like it would doom traditional Realtors and commissions. Locally in Phoenix, I hear this a lot, mostly targeted toward Zillow. Any of you whom read my articles, know I recently had a run in with an agent who used Zillow for his comps.

A Mercedes and a Kia are both cars. 

A Kia and Mercedes are much alike, they have an engine, transmission, four wheels, doors, are made of metal, wood, plastic and rubber however the base model Mercedes sells on average for around $35,000 while a base model Kia sells on average for around $17,000. Have you ever been curious why? Compare the two cars, a Mercedes comes with a 48 month, 50,000 mile warranty while a Kia comes with a 10 year, 100,000 mile warranty. They both are fairly stripped models of cars and both perform closely in track tests. I would argue that the biggest difference in the two, Mercedes has worked hard to make customers, Loyal Fans and Kia has left customers to be customers. 

Mercedes does not see Kia as competition. 

They are 100% correct in this thinking. No one shops at the Kia dealership and compares the car to a Mercedes. In the mind of both car owners, their is not a comparison. Easily this translates to Real Estate, while Purple Bricks and others will represent a "full service listing" which will compete well with most agents, I do not see them as competition as my services are truly a luxury standard and I work hard to ensure my clients become my cheerleaders, overwhelmed with my services.  

In the end, if you are very concerned about your "purple" competition, perhaps you should really be concerned with type of agent you have become. I would suggest a check to see if you are looking "purple". Just my thought.  

  

Posted by

James (Jim) Lord

jim@jimlordregroup.com

www.jimlordregroup.com

480-648-3378

Comments (7)

Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

Thanks for the introduction and your company concept Jim Lord 

Sep 18, 2017 09:21 PM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Jim Lord - well, you said it!

Mercedez does not consider KIA as her competition! Simple!

Sep 18, 2017 10:33 PM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

Interesting thoughts! I haven't seen the purple people yet. I do think if you wow your clients, they will be forever loyal.

Sep 19, 2017 03:42 AM
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Good morning Jim.

A new one on me.  Never heard of them before

Sep 19, 2017 04:38 AM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Jim. Real Estate office models come and go with fanfare. I am my own competition and hard to beat! Enjoy your day!

Sep 19, 2017 05:25 AM
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Jim. Interesting discussion and forum. I was a 7% woman. I did more and the client got more.

Sep 19, 2017 06:00 AM
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

Jim Lord I believe that along with the fluxinf of the market cycles, this concept will thrive or fail as sellers and buyers understand the shortfalls of this business model.

Sep 19, 2017 01:18 PM