Today I was browsing real estate articles on the Texas Association of Realtors website. One caught my eye in particular...
In a nutshell, it was about a Chicago brokerage who is now starting to charge home buyers a retainer fee. Much like an attorney, the agents will charge an up front fee ($250) to begin working for their clients (buyers). If the agent helps the buyer find a home and close on it, then they would get another 2.5% of the purchase price (paid for by the selling agent in a co-op situation). So if their client wins, they get paid. If the buyer does NOT find a home or uses another agent, their retainer fee is forfeited.
It got me thinking...would this EVER work in the Dallas/Fort Worth real estate market?
I don't think so.
There are entirely too many Realtors out there who would work up front for "free" and get paid at closing - it's the way it is NOW for most DFW brokerages, and primarily how it's always been.
But it piqued my curiosity...
The article brings up a few good points:
-Many didn't think that airlines charging baggage fees would catch on. And with the exception of Southwest Airlines, all the major airlines decided to charge for it too.
-Bank ATM fees. They're everywhere - and something you just expect when using an ATM. But when they first came out many thought they were crazy.
So will Buyer Retainer Fees catch on?
On the one hand I love the concept - in theory. There are those times we work for clients, spend countless working for their benefit only to have a closing fall apart and be left with nothing. No paycheck. No consolation prize.
But I honestly don't see it working...
What say you, my real estate friends? What does your crystal ball show? Will retainers be a normal way of doing business five years from now?
Buyers - what about you? Would you pay up front to have an agent begin working for you on your behalf?
Comments(1)