Have you heard of HomeLight? There has been some buzz around HomeLight and the services they offer recently. One of the things that they continue to reiterate is that agents CANNOT pay to be featured on their website. It’s a service that is suppose to help connect you with top talent in the industry. However, there is something that they aren’t telling you, and it’s something you may want to know about.
HomeLight has been around for a little while, but they’re kinda up and coming in terms of doing advertising. Their big ad – their big play – is saying, “Hey, agents can’t pay to be on here”.
What they’re referring to is how agents that pay to be a premier agent on Zillow and Trulia (check out ‘The Truth About Zillow‘, and other sites like that. So that’s their angle. Now the thing is, it’s not 100% accurate. I mean, it is from the standpoint that you can’t pay to be on there, that’s true. But, what they don’t mention in that is that they still are getting paid.
How are they getting paid? Well, they take a 25% referral fee for any clients that go through them. So if you’re thinking about buying or selling your house and you go through HomeLight, if you get connected to a real estate agent, the agent has to agree to give 25% of their commission to HomeLight. It is kind of brutal.
Now some agents are just happy to have the business, and I get it. Even I have a profile on HomeLight. I don’t love it per se, but I’m on there. However, I also know some other top agents that aren’t on there, ’cause they don’t wanna agree to those terms.
So just take it with a grain of salt. That’s the truth behind how the program works. If you have a great agent in mind or you’re scoping things out, sure look at stats, but then maybe contact them directly. That way they won’t get hit with that fee and you can still have a great experience.
Reaching out to the agent directly and avoiding that fee out of their commission will also allow them to be able to pay for all the market and things that they wanna do for you without having that piece of the pie go to HomeLight.
As a client, do you think that is fair? As an agent, what do you think about the HomeLight practice? Let me know in the comments below!