WHY PAYING A SITE VISIT FEE TO REAL ESTATE AGENTS ACTUALLY MAKES SENSE.
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You've probably come across the argument that goes something like this:
"Never pay real estate agents a site visit fee. They earn through commission, they're not engineers, surveyors, or architects providing technical reports. They're just showing you a property."
That entire statement came up as a post on twitter, and it sounds convincing at first, right? But let's take a moment to unpack it.
This argument assumes that a real estate agent (among several other agents) who is tirelessly ferrying potential buyers to and from a property will be the one to sell it and earn a commission. Agents do earn a commission as a matter of fact, but only if one of the potential buyers they bring in eventually purchases the property.
If that doesn't happen, then the agent earns nothing from that particular property, despite the significant effort and numerous showings they've already invested. Therefore, the expenses for that particular property, product, or service will not have resulted in any income, and that's not a good business case.
Now ask yourself: Would you work for free on a particular property, especially when your work involves time, transportation, client follow-up, and deep local knowledge? and what if the agent provides a report, is he then entitled the the site visit fee?
Let's Talk About Real Costs.
Imagine an agent who spends an entire day coordinating your viewings, driving you around, answering your questions, and giving honest advice about each neighborhood and property visited. That agent may spend fuel, airtime, and hours of their time without any guarantee of a sale.
I've seen cases where agents take out-of-town clients to see six properties across three districts in one day, just for the client to say, "I'll think about it" and never call back or even write a message. Does the agent deserve zero compensation for their financial and physical effort in such cases?
You might be surprised to learn that some agents have to borrow fuel money just to honor a client's request to see a property. Others pay drivers, use their personal vehicles, or put other income-generating work on hold just to help you explore your options.
Commission vs. Visit Fee: Two Different Service Rewards.
Here's something many people misunderstand: the commission and the visit fee are not the same thing.
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The commission is paid by the seller or property owner when a sale is made. It's payment for successfully closing a deal.
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The visit fee is paid by you, the potential buyer, for the time, effort, and transport it takes to organize and conduct the site visit.
These are two separate services offered to two different people. One rewards a sale, the other covers the cost of providing a guided, professional tour.
Would you expect a tour guide to spend their day walking you through historic sites for free, simply because they're passionate? Why expect it of a real estate agent?
It's Not "Just Showing You The Property".
Real estate agents are often your first source of practical information. They can tell you whether a price makes sense for the area, which properties tend to have legal issues, how flood-prone a neighborhood is, or even whether that shiny new apartment building has a decent water supply. They're not "just showing you the property", they're helping you avoid expensive mistakes.
Some even warn clients about properties with unresolved land disputes or fake titles, long before the lawyers or surveyors are involved. That kind of knowledge comes from experience, not Google.
Consider These Thought Experiments.
Let's explore a few real-world scenarios and ask yourself, how would a real estate agent handle these without charging a site visit fee?
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What if a prospect keeps requesting endless trips to view endless properties in multiple locations? Should the agent just continuously keep spending time and fuel showing properties without any compensation, even when there's no clear closing intent?
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What happens when the prospect doesn't buy or rent any of the properties? Does the agent still get paid for offering a service that particular prospect? If not, how is their time, energy, and transport cost accounted for?
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What about buyer's agents who only get paid by the buyer or tenant? If that's their only source of income, are they entitled to charge a site visit fee to stay afloat while helping clients search?
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What if the seller refuses to offer a commission to agents? In such cases, should the agent still show the property for free? Where is the agent supposed to earn from?
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How should agents deal with fellow real estate agents who request property visits just to collect listings and build their own portfolio? Isn't that also a service that requires time and effort? Shouldn't there be a policy in place to protect against misuse?
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What if a buyer only wants to consult the agent, ask detailed questions, but has no intention to buy through them? Should the agent charge a consultation or site visit fee in that case to account for their professional insight?
These aren't just hypothetical situations, they're everyday challenges agents face. If you were in their shoes, would you be willing to absorb all those costs and offer your time for free? So, What Should You Do?
Next time you're looking to tour properties, ask yourself:
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Am I respecting the agent's time and resources as I would any other professional's?
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Would I still want to see the property if I had to cover all the transport myself?
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If the agent didn't charge a visit fee, how would they sustain their work?
And more importantly: Isn't a small visit fee worth it if it helps you avoid a poor investment or a shady deal?
Filtering Out Unserious Clients.
In many cases, the visit fee serves an important purpose, it helps to filter out unserious clients who have no genuine intention to buy or rent. It acts as a commitment signal, ensuring that the agent's time is spent on prospects who are truly interested. In other words, All Real Estate Tourists Must Pay a Search Fee, No More Free Tour Rides for those simply passing time or collecting ideas with no plan to make a move.
Appreciating the agent.
The Twitter/X post I referenced earlier in the blog ends on a surprisingly thoughtful note, it shifts from dismissing the idea of site visit fees to encouraging a more respectful approach toward agents. It suggests that after a site visit, you, as the buyer, should "Appreciate them if you want, based on how they've treated you".
This small gesture of gratitude, whether verbal or monetary, acknowledges the time, effort, and expertise the agent has invested in your property search. Even if you don't buy through them, recognizing their professionalism and expenses on you can go a long way in building trust, encouraging ethical behavior, and sustaining the industry.
After all, appreciation reinforces the value and dedication of someone who showed up, guided you, and helped you navigate your property search. But here's a question for you: Do you support or oppose the idea of real estate agents chárging search fees? We'd love to hear your thoughts. Click the share button at the bottom of this blog, and share it to your favorite platform, and then add your comment to join/start the conversation.
My Final Thoughts.
I've always been an advocate for site visit fees, also referred to as inspection fees, showing fees, search fees, or service fees. Having worked closely with real estate agents, I've seen firsthand what they go through, especially those dealing in low-end properties. I'm also aware that a few agents misuse the idea behind site visit fees, and I fully agree that such individuals should face consequences for their unprofessional behavior.
I've also observed that many of the voices arguing against visit fees tend to be high-end agents serving high-end clients in high-end locations. For them, the commission margins are often substantial and sustainable, making it easier to absorb the costs of site visits without charging extra fees.
On the other hand, agents operating in low-end markets, serving low-end clients and handling more low-end properties, face a very different reality. Their commission margins are typically too small to sustain their operations, so they often rely on site visit or search fees just to stay afloat.
For these agents, charging a modest fee isn't about greed, it's about survival in a market where effort is high, but returns are modest. Although I must point out that these low-end agents are often the biggest culprits when it comes to misusing visit fees, I've personally had endless confrontations with them over that issue.
That said, there are many genuine, hardworking, trustworthy, and committed real estate agents who walk with you through one of the biggest investments of your life. Treat them like the professionals they are. That small fee you paid for a guided visit might just be the reason you avoided a costly mistake and saved millions in the long run.
Kind Regards Julius Czar Author: Julius Czar Company: Zillion Technologies Ltd Mobile: +256705162000 / +256788162000 Email: Julius@RealEstateDatabase.net Website: www.RealEstateDatabase.net App: Install the RED Android App Follow me on: Twitter, LinkedIn, Facebook.
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