Offerpad’s agent partnership program gives agents another tool when making listing presentations, and pays them a 3 percent referral fee when their client accepts an offer from the iBuyer.
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Sellers who don’t want to invest in repairs or have buyers traipsing through their house can be pose a challenge for real estate agents who may lose the opportunity to represent them when an iBuyer offers them cash.
But Offerpad’s agent partnership program gives agents another tool when making listing presentations — and pays them a 3 percent referral fee when their client accepts an offer from the iBuyer.
That’s made Shauna Huisman, a Phoenix-based Realtor with Realty ONE Group, who’s referred several clients to Offerpad, a fan of the program.
Speaking with Offerpad’s Brigham Weight at Inman Connect Wednesday, Huisman said there are many “disruptors” in the Phoenix market, and she learned a lesson when she lost a client to one.
“I had a client who did not want people coming through their house,” Huisman said. “They were elderly, they couldn’t take on repainting, some of the basics. They actually had a really adorable house. I was super excited to list it. I knew it would do well on market. They kept throwing out signs that they just weren’t comfortable for their house to be on market. And at that point in time, we had a disruptor in the market, but they didn’t have an agent program and I actually lost that deal to them.”
Moderator Katie Kossev, managing broker of Texas at Side, said she’s seen cash offers “increasing like crazy this year” and that companies like Offerpad have gone from being “disruptive to, like, very disruptive, at least in the Texas market.”
Weight, Offerpad’s national director of business development, cautioned that “not every single person is the right fit for this program.” But for sellers that need certainty — including people who are relocating for job opportunities, or who have other deadlines that need to be met — a cash offer from Offerpad may be an attractive alternative that allows them to “skip the hassle” of listing.
“We are a tool in the agent’s toolkit to be able to provide a solution for their sellers, when potentially it makes the most sense,” Weight said, and helping agents connect with more people.
“We come from real estate. We know that that experience is sitting in a living room talking through the different scenarios that the seller needs to go through,” Weight said. “And most importantly, we want to be able to arm these agents with opportunities to provide a cash offer when they see fit.”
When Offerpad launched its agent program, “I was like, ‘This is brilliant,’” Huisman recalled. “Because from an agent perspective, Offerpad makes it easy and you’re not cut out of the deal. So you’re still compensated. And the thing I like the most is I can continue to be an adviser to my client through the process.”
Huisman agreed that Offerpad is not the solution for everyone, but said she’s become attuned to clues that her client might be more inclined to seek a cash offer than put their home on the market.
“When you’re in the advising state and you’re listening to your client, and you start hearing things like, ‘I don’t want people coming through my house.’ Or you’re looking around the house and you’re noticing it’s about 30 years post-dated. Or you notice that maybe there’s some disrepair, maybe the client hasn’t kept their property that nice, and you’re thinking, “Hmm, now the days on market are getting longer. How can I sell this property on market when they’re not willing to invest to make it more appealing to buyers? Well, those things should be your key: ‘I need Offerpad.’”
But if a seller might be open to a cash offer, “You kind of get one shot here, guys,” Huisman advised. “You have to do it first” before marketing a home as a pocket listing or “coming soon” property.
Once a client has a cash offer, “you need to be honest with yourself,” she said. “Run your comps, do your data research, understand the condition of the home and understand the mentality and the psyche of your seller. Because if you’re honest with yourself, what you’re going to get from Offerpad will be competitive.”
Weight said that once agents have referred a seller to Offerpad, “there’s no going around the agent in this program. We work directly with you, for you to present our cash offer to your client as their agent.”
If a seller accepts the offer, “We go under contract and you guide them throughout the entire process until the closing date.”
The agent who works with Offerpad receives a 3 percent referral fee “every single time, whether it’s your first or your 100th transaction with with Offerpad.”
Huisman said one of the key differences between Offerpad and other iBuyers is that agents are assigned a dedicated employee to work with them throughout the process.
“In real estate, that’s one of the most important things from an agent perspective,” Huisman said. “We want to be taken care of.”