Home Selling in 11703>Question Details

Joe, Home Seller in North Babylon, NY

Added Incentive To Get More Selling Agents to Show House

Asked by Joe, North Babylon, NY Tue Dec 23, 2008

It was recommended to us that to get the maximum number of selling agents to show our house we should offer an additional incentive (besides the commission). It was suggested that we advertise that the agent who sells our house (not the listing agent) would get a bonus of cash or plane tickets paid directly to them. They said plane tickets might be better because the agency wouldn't be able to take a cut. What do you think of that and what would a suitable amount be if this is common practice?

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Joe the advise you received is misguided. Anything you offer has to go to the broker and the broker than splits at what they are contracted with the agent for. so plane tickets may cost the agent instead of benefit them. You should first see that your listing agent is offering a 50/50 cobroke. then make sure your house is priced at what similar houses ahave sold for in the last 6 months. have your broker do a bpo to arrive at this. then make an incentive to the buyer. if the buyer likes, the agent will come. good luck with your sale
Web Reference: http://www.ScottSellsNH.com
1 vote Thank Flag Link Tue Dec 23, 2008
And the other misconception being stated here by the "big boys" of real estate is that you would have to split it with your broker. That day is going quickly. Some agents make 90-100% of their commission or pay out a flat fee for their side of the deal so in that case "the plane tickets " would not go to the broker. But again if the buying agent is behaving as a Certified Buyers Agent, it is their responsibility to credit the cost back to their buyers in the cost of the deal or give them the plane tickets.

what I can agree with is price, price, price your home according to black and white market condition reports provided by your listing agents. Better to have a price war with a large pool of buyers than no one looking at all!
0 votes Thank Flag Link Mon Sep 9, 2013
If the agent is behaving as a Certified Buyers Agent it is only ethical that that agent turn over any cash or gift incentive that the sellers offer out. This was taught to me by two very well respected ABR and CBR instructors. Even though you do not want to offer more commission, if you offer an extra point or two and let your listing agent know that half of that compensation needs to be offered out to a cooperating agent or Buyer Broker, you will see a lot more action on your home. There was a time when people paid 7, 8 or 9% to sell their homes. To bring up your offering to 5 or 6% and get your home sold, think of what you will be saving. Upcoming high tax bills, more time in the home you are ready to leave. It depends how fast you want to go. Try the uptick in commission until Thanksgiving. You may be pleasantly surprised.
0 votes Thank Flag Link Mon Sep 9, 2013
Joe,

This is becoming common practice but a position we DO NOT suppport.

Our belief is that it is the home and its price that are the most important features that sell a home not the additional money that goes in the pocket of the selling agent. The plane tickets, extra commission, etc. value should be deducted from the asking price. Forget the gimmicks and focus on the important issue PRICE....

There is only one reason why a home does not sell, PRICE...........Do you really think people will buy the home because of plane tickets???????
0 votes Thank Flag Link Fri Dec 26, 2008
Joe,

This is becoming common practice but a position we DO NOT suppport.

Our belief is that it is the home and its price that are the most important features that sell a home not the additional money that goes in the pocket of the selling agent. The plane tickets, extra commission, etc. value should be deducted from the asking price. Forget the gimmicks and focus on the important issue PRICE....

There is only one reason why a home does not sell, PRICE...........Do you really think people will buy the home because of plane tickets???????
0 votes Thank Flag Link Fri Dec 26, 2008
Joe
Thanks for this question.Is your home already on the market?
If so, what showing activity have you had?
According to Trulia over forty homes have recently sold, and there are 101 homes are the market.
That seems like a fairly balanced market to me.

How many homes, like yours, have sold during the last three months?

Buyers are looking for value. There are many ways to add value to a listing, however lowering the price is the easiest way to add value. If homes are selling, but not yours, then no amount of incentive is going to cause a buyer, their Realtor, and a lender, to buy a home for more than market value.

Good luck!
Merry Christmas!
0 votes Thank Flag Link Fri Dec 26, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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Any incentive that you offer will be split with the selling agent's broker. At least the companies I have experience with work that way. Houses are selling but they have to be priced right. Period. I don't know what you have out as the selling agent commission but I would raise that by a point and have your listing agent call the agents in the area who have sold homes in your area to personally let them know about the incentive. Hopefully things will pick up after everyone gets over their holiday hangovers. Good luck and happy holidays to you and your family.
0 votes Thank Flag Link Thu Dec 25, 2008
Certainly if it ( the house) is an in-house exclusve, as the broker keep it in front of your agents by caravans, work-ups and pictures, and of course staging both internal and external. In short make the house easy to sell for your agentsl, nothing exotic.
0 votes Thank Flag Link Wed Dec 24, 2008
A separate bonus paid is not subject to split with some agencies, I can't say for all. Usually the bonuses are from $1000 to $5000 if in contract by a certain time.

Instead of attracting agents, you need to attract buyers. I would recommend paying 6 months of taxes or some closing costs to attract more buyers. The property must also be priced well.
0 votes Thank Flag Link Tue Dec 23, 2008
Joe, any kind of bonus is given to the selling agent is split between the agent and the broker (sorry you have been misguided). You could also give the bonus to the buyer..pay taxes, closing cost part or full, pay the point to lower the interest rate, and/or lower the price of the house, etc. You could ask your agent to do the current market update and see what is selling--price , condition--and then set your price. Good Luck with your sale.. Please tell us what was the outcome.
0 votes Thank Flag Link Tue Dec 23, 2008
I think I would be more inclined to offer an incentive to the buyer...pay the first year of taxes...pay their mortgage the first 6 months, etc....do the math, it's not much different than negotiating the price a little.

The biggest incentive is to lower your price and make sure it is being marketed to the dozens of websites available to Realtors and watched by more consumers.
Web Reference: http://GailGladstone.com
0 votes Thank Flag Link Tue Dec 23, 2008
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