For many agents, having their clients pay-per-showing is an absolute dream. Especially when you dive deep into the gas money, mileage on the car, and even the value of an agent’s time.
Spending the money to show 8 homes to a serious client is no problem for many agents. It’s when the home showings start to add up to over 10 and the client is starting to be flakey. That’s when it would be nice to charge per home showing.
Why would an agent charge per showing?
Real estate agents wouldn’t charge every buyer for home showings. However, certain types of clients are a good fit for paying for their showings. This could be because the client would like to be unobligated to use that agent, the drives are too far, or for other various reasons.
Remember that many agents will credit back the cost at closing.
Who is a good fit to pay for their own home showings?
- Friends and family wanting to see a home in an area that you don’t cover, but are licensed in
- Someone who asks you to see a house, but is already represented
- The client is on their 20th showing and the home price is too low for you to trade off your time for the commission
- Institutional investors that are deal picking and typically see 30 homes before they commit
Listing Agents
Listing agents get calls from other agents and represented/unrepresented buyers asking them to show their listing. Most of the time agents make accommodations to make it work because nobody knows the property better than they do. But there are situations where it would be better for the client to be shown a property through Showami.
One obvious case would be if they cannot accommodate the date and time being requested. Giving the client an option to pay to be shown on their schedule could work. Another scenario is when a listing is out of the listing agent’s normal coverage area and they need another agent’s help with showings. When given the option, buyers have shown a willingness to pay to view properties.
How common is it for an agent to charge for showings?
This practice only became common quite recently. The new expectation of having the clients charged for home showings, was revolutionized and made easier by Showami. They’ve taken the concept and made it easier for clients to request home showings and pay for them through their Showami Client Portal.
Additionally, consumers have become wiser to the fact that they’d like to see homes unobligated. This is in an effort by the buyer to either bypass a real estate agent or because they fear committing to a particular agent. Most agents don’t want to show a potential buyer too many homes without an agreement, so the two parties typically come to an agreement where the clients will help pay for showings.
Finally, some clients would rather pay for a showing than bother the agent that they regularly work with. Especially if they don’t think the property is one they are going to like. If they end up liking the property they paid to see, at that time they will ask their agent to meet them at the property in person.
Can real estate agents charge buyers per showing?
Yes, however, the agent must be upfront about the charges and they must remain consistent. The last thing you want to do is present your client with an invoice for home showings when they never agreed to pay for showings in the first place. Acting this way is both unethical and does not sit well with your home buyers.