$950 according to a new web service called SoloPro, who connects home buyers with buyer’s agents. You think about that the next time you are told you MUST pay a buyer’s agent $15,000 to help a buyer buy your $500,000 home.
To use their service, SoloPro attracts home buyers by promising to give them a 3% rebate on the purchase of their home. And where does that 3% rebate come from? The home seller of course. So, the home seller puts aside thousands of dollars of their hard earned equity to pay for the buyer’s agent and instead the money goes directly to the buyer, effectively lowering the selling price of their home by 3%. At a time when most sellers overprice their home in the hope of selling it for top dollar, why would they voluntarily lower their selling price by 3%?
SoloPro is just the latest in a line of new companies that promise to give some or all of the buyer’s agent’s commission to the buyer, proving once and for all there is no need to offer 3% commission to the buyer’s agent. They don’t need it; they don’t keep it; they’re willing to do it for less. Why would any seller offer 3%?
It is time to put an end to the outdated custom of having the seller pay for the buyer’s agent. It is economically wasteful and leads to needless conflicts of interest. Every other country on the planet, besides the US and Canada, does not ask the seller to pay for a service that benefits someone else, and they manage to buy and sell homes just fine. Let’s join with the rest of the world and subscribe to the crazy notion that the person receiving the service should pay for the service. Of course if that happens, companies like SoloPro will cease to exist. Oh well.