Do you feel like you aren’t using your time as effectively as you could be? I get it—once your real estate career starts picking up, it can feel like you never have enough time. One of the easiest ways you can buy back your time is by working with a showing agent. This allows you to spend all the time you would have spent on showings on money-making activities instead. It’s a great way to gain leverage, and I recommend it to many agents when they’re first feeling overwhelmed. However, working with a showing agent raises an obvious question: How should you pay them? Here are three tips to make sure you’re getting the most out of your showing agents:
1. How to find your showing agent. To find the best showing agent possible, I recommend running ads to newer agents looking to get a little extra cash. All agents need to pay the bills, and newer agents might not make enough from commissions yet to cover all their expenses. By offering them to be your showing agent, they can get the opportunity to make extra cash while you free up time to spend on more important activities.
2. Don’t pay them per deal. At first, it seems like the easiest way to pay showing agents is to add a contingency where they get paid a percentage for every transaction. However, this method comes with a few issues. For example, buyer agents will often show homes for you for free. If someone offers to do this but you already have a deal with a showing agent, you’ll have to pay them even if they don’t do any work. You might also pay more than you have to if you pay based on a rate versus a flat fee.
3. Pay in cash upfront per home. This is the best and simplest way to pay your showing agents. By paying them upfront, you make sure that you’re only paying for real value. If a buyer’s agent comes along and wants to show your house for free, you don’t have to worry about an outstanding deal with another agent since everything is paid for in cash, and there’s no contingency in your contract. Plus, by setting a flat rate, you can be assured that you won’t overpay for any work.
At the end of the day, hiring a showing agent is all about giving yourself more leverage to grow your business. If you’re looking to take an even bigger leap, please call or email our team. We have the training and resources you need to focus your time on money-making activities. Make it a great day!
