Newcastle real estate could be turned on its head, with new online real estate agent Purple Bricks starting in the city.
Unlike traditional agencies, the U.K based company ask for a flat fee of $4,500 and offer a dedicated expert to guide you through the sale process until your property is sold. When you sell at auction, the fee goes up to $5,870.
The company is set up in other cities throughout the country offering an alternative to traditional real estate agents, being cheaper and apparently more accessible to vendors.
However, Hunter Chairman of the Real Estate Institute of NSW Wayne Stewart believes the company won't last long at all.
"It's been happening for 20 odd years now from time to time we see start out companies that have a good idea and they come into the marketplace and disrupt the marketplace for a short amount of time and then they go as quickly as what they've come into the marketplace."
He adds that being an online service, you're less likely to have an agent with you every step of the way to guide you through and point you in the best direction.
"You don't get much in the way of marketing, you don't get much in the way of service and in a lot of these situations the vendor actually has to show the buyer themselves. You don't have anybody there to negotiate the sale for you skilfully whereas with a real estate agent it's a very holistic service," said Wayne Stewart.
