4 Things You Should Know Before Expecting a Real Estate Agent to Show You Houses for a Small Fee

Due to recent changes in the industry, home buyers are now required to sign an agreement in order for a real estate agent to show them even a single house. These agreements stipulate how much commission the agent will earn, and that the buyer is responsible for paying it (if the seller isn’t willing to negotiate it into the purchase agreement).

That might sound like a huge commitment to some buyers, especially if they just want to see inside a house or two. So, if you came across advice (like in this recent article) suggesting that you should only sign a one-time showing agreement, and offer to pay the agent a small fee — “perhaps $25 a house” — it might sound like a brilliant idea.

Sure, you could sign a one-time showing agreement, which seems like a no-strings-attached way to get a peek inside your dream homes.

But before you start banking on this approach, let’s take a look at 4 things you should know before expecting a real estate agent to show you houses for a small fee, and why it might not be as easy (or appealing) for them to agree to as you think:

1) It’s Not Like You Can Just Venmo Them a Few Bucks

Most real estate agents work under a broker, and any fees or commissions they earn need to go through their broker, who will process the payment no matter what form the payment comes in. So you can’t just slide an agent some cash, write them a check, or Venmo them the money.

While it might seem like an easy transaction, that “small fee” has to go through the official channels before your agent sees a dime, which could take days or even weeks.

2) Their Broker Will Keep a Portion of It

Not only does the broker have to process the payment, but they’ll also likely keep a portion of it as well!

The amount a broker keeps varies from one agent to another, but it’s not unheard of for a broker to keep 50% of whatever an agent brings in.

3) It’s Gotta Be Worth Their Time… and Expenses (And Profit!)

The true value of a great agent isn’t time-based. A skilled agent truly earns their money by being a valuable advisor and negotiator, not just someone who shows up to open a door for you and let you look around a house.

But if you are thinking about minimizing it to an hourly wage, you also have to consider that your fee isn’t just covering the minutes they’re with you, but also the gas it takes them to get there, the tools of the trade they pay for, their marketing, their licensing, their insurance… just to name a few of their business expenses.

A small fee might cover the gallon or two of gas it takes to get them there, but without a little extra incentive, it might not be enough to get them off the couch, much less cover their actual expenses or turn a profit. And hey, agents are trying to make a living, not just break even!

4) They Might Have to Prioritize Time With Other Clients

Most real estate agents are working with multiple clients at once, and the reality is, some clients are worth more of their time than others. If they have a client who has fully committed to working with them, and to pay them a larger commission, they might not have time (or be willing) to squeeze in a one-off showing for a small fee. It’s not personal — it’s just business.