New Fees to Use Another Chicago Real Estate Co.

As one local real estate group begins charging customers in their search for homes, another Chicago real estate company launches a program that charges its clients by the hour, though the latter claims its program will save some Chicago home buyers money in the end.
Lucid Realty this week launched a 100% Real Estate Commission Rebate Program for Chicago home buyers. Through the program, clients can pay a Lucid Realty agent an hourly rate to buy a home in exchange for a 100 percent commission rebate at closing.
The full commission, which is paid by the home seller, will be given to the home buyer as a closing credit or a check.
The plan will most benefit customers buying more expensive homes or those who don’t need as much assistance from their real estate agent in the purchase of a home.
“This 100% rebate plan solves two long standing problems in real estate,” said Gary Lucido, President of Lucid Realty. “First, clients who require little assistance in buying a home are basically paying for clients who require more assistance. Second, real estate agents can spend a considerable amount of time engaged in low value activities, earning very little on an hourly basis. Home buyers who opt into this new plan will have an incentive to use their agent more effectively. It should be a win-win situation.”
The program was launched during the same week that Chicago-based Koenig & Strey began charging its customers a fee to work with one of their agents. Click the first ‘Chicago real estate’ link in this story to read about that.
“We understand why Koenig & Strey introduced this fee. They are trying to solve the same problem that we are trying to solve,” said Lucido.
“The main difference is that the Koenig & Strey solution ends up costing home buyers more while our solution should cost them less.”
Lucid Realty is offering an introductory rate of $75 per hour through the 100% rebate program.
Whether or not these new fee structures will take hold throughout the Chicago real estate industry remains to be seen. With all the inventory available to Chicago home buyers, I can’t imagine anyone would pay more than necessary to find and purchase a home in this market.