Is Homie Good or Bad?

Selling

I had a colleague respond to me today, after I asked to catch up, with only the statement he intended to use “Homie” in his next real estate transaction.  To say the least it was a little frustrating trying to figure out how to respond.  Yes, I am a Realtor®, but I’m also a person and I’d like to think I’m at least a little interesting to talk with.

So after quite a bit of thought, here’s how I replied.

Just to note, I’ve been trying to figure out how to respond to your Homie comment.  I’ll try to keep it short.

1) As a colleague/agent, I want to fully support those around me in any interactions we have because I care about the relationship.  For example: A person called me the other night to understand how Covid19 is going to affect their upcoming listing.  I probably have spent 4hrs diving in to help with an answer.  I don’t think Homie would do this, because the agent makes less than $1,500/transaction and they wouldn’t have time.

2) I’m not opposed to having someone listing with Homie.  It’s a great alternative for some percentage of the population that is comfortable with the service they provide.  I used a lawyer to buy a house once before I was a real estate agent.  Looking back, I now realize how much work the Listing Agent had to pick up.

3) Read this article, I think it was well written and covers both sides fairly.

4) You’re not my target, it’s your network.  You’re likely to buy/sell a home once every 7-10yrs, but you’re likely to know at least one person a year going thought the process.

Anyway, Thanks and would still love to connect if you have time.

I truly believe there is a service level provider for everyone, and Homie is filling a gap in the market.  But you have to be educated about your choice and I’m not sure everyone that uses them is.

I think this paragraph by Richard sums up the experience you should expect, and then you should decide if this will work for you.

“Although they (Homie) do provide some value, if you rely strictly on Homie for communicating and negotiating back and forth with the buyer, it will likely cost you the sale because of delays and what appears to be a general lack of engagement.”

I will say I’ve heard this exact same sentiment from buyer’s agents that have had clients want to purchase a Homie listed property.  To note though, there are some really bad Full Service agents out there as well, and at least with Homie you get what you pay for.

A few final thoughts:

· Offer a full Buyer’s Agent commission.  As a buyer, you sign a contract stating you will pay your agent an agreed upon rate which may be offset by what is paid for by the seller.  If there is a difference, the Buyer is responsible!  When I remind a buyer of our agreement, do you think they still want to see a Homie home?  It's their choice, I'm just pointing out the facts.

· Is everyone that lists with Homie happy?  No.  About 1 in 4, terminate their contract with Homie before their home is sold.  This figure also doesn’t account for how unhappy many of their clients are that ultimately do sell with them.  Are there happy one? Yes, and you can find their reviews on Homie's website.

· With 25% of all contracts failing to make it to settlement, do you have the time and energy to spend going through a process where your agent isn’t responsive?

Thanks for your time.  Let me know your thoughts @ craig@craigtheagent.com.