Premier property lawyers & Purple bricks - buyer probably loses 60k

Exchange monies following week long IT outage by law firm recommended by Purple Bricks . Oh dear . Anyone with experience of dealing with these people?

have they actually lost the money though? first of all the buyer has to fail to complete on the completion date, and then a notice has to be served giving the buyer 28 days to complete before the deposit can be taken.  Has that actually happened?

I completed through them - went ok - no issues however if this news had been in circulation at the time woulda gone elsewhere i suspect. 

It appears so , can’t be sure hence I said probably. I can’t link , the article appears in the Mirror 

Novak said: "We had to meet with the vendor and agree to mutually sever, as the lender my niece had used needed funds to be returned to them and reordered".

"mutually sever" - wtf does that mean? If it means that they agreed to surrender their deposit to the seller then they are idiots. If it means they got their money back because the contract came to an end, then they didnt lose their money.  

but that wouldnt make him lose his money. The contract is between buyer and seller. And premier, if they have the money would be holding in a segregated client account as trustee for the buyer. 

More interestingly. PB seem to be on the brink. 

By far the worst investment decision I've ever made, shares currently sitting at -77.4%

Should probably just sell before they go pop. 

Pancakes what went wrong , on its face it’s a decent model.

The operating model is crap. The reality is that for such a large asset as a house, a house chinny is worth the money and will get better results. 

Paying up front is a disincentive to sell - the selling done by PB is getting listings rather than selling your property.  You need them to sell your property. House chinnies work to do that because they dont get paid if they dont. PB have no incentive to see the deal close. None at all. 

 

P what do they charge is it like a grand all in regardless if they sell or not ? I’m surprised they are about to go pop though. I guess they had several rounds of investment from VC 

i think they charge a fee and then lend you the money to pay it so you can sign up to use them and feel like you're not paying but then you have to pay in a few weeks regardless of whether you sell or not but in the meantime they dont have the know how or incentive to help you sell / deal with viewings / deal with the negotiation etc.  Yes you might save a couple of grand, but you might end up getting less for your home so the saving is zero or less than zero.  

 

 

ebitda18 Nov 21 12:11

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@ TB fair does, probably on a kick back though.

 

Think that's bang on.

Got ya . I would never go near them regardless even before you told me what you just did .

slag off Foxtons all you want , and I do , but they work bloody hard to get people through the door , and they mostly do it very well . First flat I used them and almost every day they had people looking. Problem is when they try to persuade you to accept an offer 20% less than their valuation. “ it’s a great offer , I promise you “

What parsnip said, wtf is the guy (is it risky?) talking about? He starts banging on about data loss after that

I've dealt with Premier a few times and the experience has never been Premier.

Ebit PB sub-contract the valuation to valuers with local knowledge effectively providing some extra income for their competitors.

And PB, pay them from their grand fee they get from the vendor?

Don't quite understand how that side works but they do send someone local to do the valuation.  May just be a freelance valuer who charges £100 for the pleasure.

You normally have 10 working days to complete after service of a notice to complete, not 28 days.

EBITDA - foxtons put targets on appointments, not sales. It incentivises the chinnies to book appointments that are (a) ficticious (how many appointments did you not get feedback for? at least 30% on mine) and (b) pointless since they're out of area / price range / not enough bedrooms or whatever than the people are looking for, but they're dragged over to meet the appointment target.

Escaped that’s interesting, I did wonder how they got so many people through the doors , I heard what you said but couldn’t believe it. There was a chap who complained my flat was too far from the station, it was a five minute walk , and I did wonder when he realised it was too far from the overland !

Now I remember an old school EA told me in passing his daughter who worked at Foxtons makes a “fortune “ with the amount of viewings she did . He mentioned it in passing, I took no notice.

are you in the wimbledon / kingston area or did I imagine that? I had them on my mother's flat and the woman handling it was like a dynamo. Only all the leads she generated were completely hopeless. Ended up accepting an offer but it turned out the guy had no money - like not just a few quid short, but NOTHING couldn't get a deposit let alone mortgage. They'd pushed him as a great buyer on the strength of seeing companies house reports showing he was a director of a company that had £x in assets. 

I think it must be an incredibly stressful place to work - weekly meetings being pushed pushed pushed to make appointments.

Why would you bother putting an offer in on a property when you didn’t have the means to buy it?

I did some googling on the guy & his used car businesses and my v strong impression was that he was laundering. That said, he did apply for a mortgage so not exactly big league laundry.

I am EP . An acquaintance used to work there  skin like a rhino. 12 hours a day 6/7 a days a week ,for 12k basic back then .

Remember the other week when I said hackers were in law firm systems? Well...

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