From asset dispositions to proptech consulting, Troy Palmquist has seen agents lose listings out of fear. The iBuyer conflict should end with cash now and more later.
Opendoor’s announcement last month of its new Cash Now, More Later (CNML) concept is, or should be, a game-changer for agencies that have been suspicious of Opendoor’s intentions for the past few years.
ICYMI explains that for these transactions, listing agents earn a 1% to 2% bonus when Opendoor buys a home, then earn a full commission when Opendoor relists and sells the home, all the while remaining the agent of record.
My perspective is a bit unique because I’ve worked both on the brokerage side at Address and on the institutional investor side at Strategic Acquisitions and Wedgwood. Now, as President of HomeCode, I advise proptech companies and high-tech advanced brokerages, so I’ve followed Opendoor’s story inside and out through multiple market cycles.
With a new CEO and board of directors, and a “grand re-opening” just around the corner, it’s time to take another look. I’m not here to promote a product launch. I’m here to provide the context that most industry coverage doesn’t convey, and to encourage you to put your doubts aside and help sellers achieve their goals by nurturing relationships with investors like Opendoor.
Why agents pushed back on iBuyers and why it made sense (at the time)
In the early days, the rhetoric surrounding iBuying made it feel like it was cutting out the middleman. Early talk was that iBuyers were looking to “eliminate the agent” and the platform’s early positioning was a real threat to traditional commission structures.
Real estate agents who have built their careers on relationships and market knowledge have real reasons not to trust platforms that interact directly with buyers and sellers. Their concerns were a rational reading of the incentives of the time.
But as more and more iBuyers go out of business or rethink their strategies, agents have taken on a more prominent role as a key part of the customer-facing process. And now, with “Cash Now, More Later,” the core objection no longer applies, as agents earn bonuses on Opendoor purchases and full commission on resales.
Another old iBuyer objection was essentially an argument about price. They force sellers to sell at a low price, and that low price puts downward pressure on the rest of the market. Here again, the CNML neutralizes that dissent. The upfront cash is a liquidity tool rather than a final price because the seller still captures full market value on an open market resale.
This is an especially valuable scenario for advance buyers who can leverage capital upfront, eliminate home sale contingencies, and create a stronger negotiating position in a tight inventory market.
How RealScout Integration Provides the Missing Piece
As the sole launch partner, RealScout integration prioritizes agent protection. Opendoor cannot use requests initiated through RealScout to target agents and solicit clients directly. This provides an additional layer of protection for agent commissions and client relationships.
Agents control the workflow, deciding when to pull offers, how to present them to clients, and which paths to recommend. This makes institutional-style relationships scalable and reduces risk for agents and customers. As with many other technology tools, the winners will be those that enhance the agent’s workflow rather than bypassing it.
What I learned from working in asset disposal
Institutional investors are not your enemy, nor are they the enemy of the market (despite what you may have heard elsewhere). They are motivated buyers and sellers with specific needs, just like your customers. Agents who understand those needs and how to identify properties that meet those needs will win.
When structured correctly, trading for investors is often cleaner and easier than traditional buying and selling, with fewer emotional variables, clearer criteria, and faster decision-making.
Most sellers are looking for speed, certainty, and liquidity, and the right investor can provide them all.
Things to think about now regarding listing presentations
If you want to take advantage of products like Opendoor’s CNML, please reconsider your next consultation method.
Understand that there are three paths to a successful seller transaction. A traditional cash offer (speed and certainty) from an off-market buyer or local investor, a CNML (liquidity and upside), or a traditional listing with a full marketing and escrow process. Diagnose the type of seller sitting in front of you and help you decide which scenario is right for them. Never steer them towards one default. As a comprehensive approach to listings, be sure to confidently present all three options. This allows you to differentiate your services and win listings over agents who can only offer traditional approaches.
IBuyer vs. Agent is a false conflict. It never actually existed. A quarter of Opendoor’s transaction volume is already through agents, and a significant number of agents (and sellers) need more options, not fewer.
Your seller doesn’t care that you hate iBuyers. They care about whether you have given them every option to sell the home on terms that are favorable to them. Forget ideological and institutional battles. Build trust and build business by using all the tools at your disposal to serve your customers.
Troy Palmquist is the founder and president of HomeCode Advisors. Connect with him on LinkedIn.
