Why should homeowners have to leave for showings?

They shouldn’t.

Can you identify the issue with the following reasoning?

Realtors when working with sellers:

“Sellers should really leave the house for showings.”

“I deserve a 2.5% commission as the buyer’s agent because I had to show them a bunch of properties before they settled on yours.”

Bundling is when the consumer is charged for what they want and what they don’t want, by virtue of the inferior business model.

For example, Blockbuster late fees versus Netflix on demand.

Blockbuster: Rent DVDs by coming into our physical locations.

Also Blockbuster: You owe us late fees.

Consider how the middle-man real estate industry imposes costs on homeowners under the guise of good business…

Homeowner Chris updated his property, he really spared no cost updating and upgrading his house. It sold itself, buyer’s found it online, he doesn’t want to give the buyer agent a twenty one thousand dollar finders fee.

The agent representing the buyer argues for their 2.5% commission by saying,

“I’ve been showing my buyers homes for six months. I must have shown them thirty properties or more. What’s fair is fair.”

Don’t be naïve, what benefits middle-men does not benefit the consumer.

The whole, “You can’t see the buyer in their wedding dress until settlement” is a tradition that serves the interests of the middle-man industry.

Consider, a seller stays home for showings and greets the buyers at the door. She answers all their questions about where the bus stop, school system and the average utility bills. They really hit it off and agree on price. The buyers love how turn-key their home is and don’t want to lose it.

The seller can’t help but wonder… Why in the world are we paying these Realtors forty-two-thousand-dollars to push the paperwork?

There is no value argument that can be made; “The buyers can speak freely about the home”, “It makes the buyers more comfortable”, etc., that is commensurate with commissions costing thousands, sometimes tens of thousands of dollars.

Gallup polls show the majority of consumers do not trust Realtors. The entire ibuyer / instant offer industry is made possible because homeowners are fed up with all the headaches invovled with selling a home.

Do not leave your house for showings, and do not waste your hard-earned equity on an inflated 5/6% commission. Do what’s right for you, listen to your financial advisor or an asset manager, not a salesperson.



Proptech contemplative. Obsessed with marketplaces. Fundraising for www.inlyst.com

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store