The national commercials for websites that offer to match you with a qualified Realtor or get banks to “compete over you”, leave you with the impression that these companies will somehow look out for you. The truth is, they are profit-driven organizations that have come up with a way to get their hands into the pockets of Realtors and lenders, and they will match you with whomever will agree to pay their price, regardless of what’s in your best interest. Since buying a home is the biggest financial transaction in most peoples’ lives, buyers should understand how these companies operate and how they make their money.

Some offer to tell you what your home is worth. The value that they place on your home is highly suspect. The problem is that they provide you with a very generic dollar-per-square-foot range for an entire zip code. These values are not specific to the features of your home or your neighborhood, and do not contain similar comparable sales that Realtors can provide from the database of the Multiple Listing Service. The real purpose of this “service” is to match you with a Realtor who has paid an exorbitant amount to the company for any leads from a particular zip code. A successful Realtor isn’t going to resort to this kind of marketing because it takes such a big bite out of the Realtor’s income.

Other national companies promise to get the best rates by getting the professionals to “compete over you”. They then charge outrageous referral percentages to whomever you end up with. These professionals are asked to do the same job they always do, but this time for up to 30% less. This arrangement usually results in a begrudging half-hearted effort, because at this discounted fee or commission you become a 2nd class client. Alternately, you may be matched with a B-string professional who needs the business and therefore has no other choice but to agree to these usurious fees.

The truth is, you can accomplish the same goals on your own with little or no extra effort. If you need to find a good Realtor, ask your friends or family for recommendations of a Realtor that handled the sale or purchase of their home in a professional manner. Get the names of several Realtors and interview them so you will be working with someone with whom you feel comfortable. If you need a Realtor in another city, any local Realtor is better equipped to find someone qualified in another city than an internet clearing house. If you are looking for a lender, a couple of phone calls will demonstrate that lenders’ rates do not significantly differ from each other due to competition, and the claim that lenders will “compete over you” is a market force that is already in effect. An internet company does not force competition - it’s already there.

You will not save any money with these national companies, and you might get inferior service. You will get much better service at the same price from someone local to whom you have actual access, and who knows that you may refer them or be a repeat customer. Wouldn’t you rather have your dollars going to the professionals that are on the ground achieving your goals, rather than a website owner that has figured out a way to get a cut of your deal?