Eileen had the right answer. Always remember that agents can only receive commissions through their broker. So the incentive would be paid through the title company or attorney, at closing, in one lump sum. The agent then turns over the money to his or her broker, and the broker splits it according to the agreement between the broker and the agent. The only exception would be if the agent's broker agreed to let the agent keep the entire amount. But the same process would still apply.

Thu May 15 2008, 12:40

At least in my area in Wisconsin this is done quite often. There are no unethical or illegal guidelines about it as long as it if fully disclosed in advance. I don't know how often it actually works on a percentage basis. I try to not even notice about commission percentages or a bonus because I don't want to allow it to sway my opinion as to which property I would encourage a Buyer to purchase. However if there are several properties and there is a bonus with one I'm sure other Realtors would be making sure that their client is at least aware of this property being available. It sure can't hurt and could possibly help you sell quicker.

Tue May 13 2008, 13:41

Hello Arby,

If you are interested in compensating your agent at a higher percentage, I suggest that when you enter into a listing agreement , you designate the commission percentage split you prefer in that agreement, in the event of a co-brokerage. The Florida Association of Realtors form very recently provided for the split provisions. The agent who is representing you could then be paid a larger percentage of the commission by their broker, after closing.

I am not motivated by incentives, but more by the desire to serve my customers' best interests. In a buyer's market, the name of the game is exposure, and with longer marketing times and more competition, it can be very costly to provide that exposure. The offer of a higher percentage of the commission for the listing broker will permit your agent to utilize more extensive opportunities for marketing to provide more visibility for your listing to get it sold. Ask your agent for examples of their marketing to insure that your home will receive the additional exposure in venues that are proven to produce results.

Good luck on the sale of your home!

Tue May 13 2008, 13:12

Arby,
The problem is real estate commission rulings about funds paid outside of closings. Your lender is going to frown on it and also the commission. I know you are speaking of an incentive but a good buyers agent is going to do their best to get you the best deal possible. They have to consider future business and referral business. If you are happy with their work you will refer your friends and family to them. As a broker I look long term. I have had buyers & sellers offer me incentives under the table and I would rather they refer me more business then to jeopardize my license. Yes is some states you can say buy them Visa gift cards or something but most likely no to the cash or checks. It is really up to the states rulings on the payments that are not on the HUD form. So just ask your agent.

Hope this helps,
Larry Story
Coldwell Banker Triad

Tue May 13 2008, 10:23

HI Arby,

You are obviously a very bright, creative, entrepreneurial type person. :-) I have enjoyed reading your questions. I have seen things in a new light as a 14 year real estate professional from the questions you have asked. Thank you.

You know, Arby, there are actually real estate professionals who will represent you and your best interests because it is who they are and how they operate. The commission on this sale is what they earn for representing you in this transaction but should not be their goal in the process. To build clients for life, to receive referrals from people like you!, and to build a great name in the business are all things agents should strive for. There are actually agents like this out there...Why don't you begin to interview a few. Tell them your thoughts and ideas and see how they respond. Work with the one that you feel can be trusted with you and your family's best interest, that is knowledgeable about the process, that is well trained on all aspects of real estate and I believe you will find that you made the right choice and that you can be proud of that choice!

No offer is offensive in this market! As I often tell homeowners..."please do not be offended by this family who likes your home and has taken time to make a bonified offer on your home. If you would like to be offended then have it be at the people who bought in the neighborhood and never even bothered to look at your home or the people who came to look at your home and chose not to make you an offer of ANY PRICE!"

If you would like to speak in person please don't hesitate to call me at 954-290-2772. Best of luck to you.

Warmest Regards,

Christina

Tue May 13 2008, 09:57

What a nice thought, but any commission must be paid to the Broker, not to the agent. I think there would be ways to compensate your agent, but I believe it all has to go through the listing office, not directly to the agent you are working with.

For most agents, the best way you can thank them is to send them good quality leads when you hear of friends, family and co-workers who could use the services of a good Realtor.

Eileen

Tue May 13 2008, 09:43