Home Selling in 78257>Question Details

John W. Thom…, Home Seller in San Antnio, TX

I would like to offer a bonus to the agent who finds a buyer for our house. How do I go about setting that up?

Asked by John W. Thomas, San Antnio, TX Thu Nov 15, 2007

There are so many homes for sale in the neighborhood that I am looking for a way to draw attention to our home.

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17
I agree with Jim on this issue. You first have to make certain that your come is priced correctly or the market and then think about the rest. Proper marketing is an absolute must and you can stand out above the others with great photos and compelling descriptions as long as your home is priced correctly for the market area and neighborhood. If all else is in place, offering bonus commissions or other "incentives" to induce a sale can sometimes be seen as a negative. I would, as Jim and others suggest, raising the commission to the procuring agent as incentive. Some agents will not read all of the agents remarks and will only look at description and other "first glance" data. One of which is the commission percentage. If there are 3 homes that are nearly identical in every respect and one has a commission that is higher, it makes sense to assume that home may have a little better chance at selling. In the end it is up to the consumer and few agents will attempt to influence a client based on commission but, when you have multiple, identical and identically priced homes to choose from....It may be possible that they will end up at the one that will pay more to the selling agent. Ask you agent to increase the Buying agent's side and see what happens. If the average in the neighborhood is 3%, make it 4% and make certain that it is all going to one side. Good luck to you.
3 votes Thank Flag Link Sat Nov 17, 2007
I disagree with the other pros who reccommended against a bonus (or premium commission rate)

Because there are so many homes to compete with yours in the neighborhood, having the most house for the least dollars is the most important first step.

Due to the large competing inventory, You need to realy grab buyers agents eyes and ears. A 1% price decrease is ok. but a 1% commssion increase (approxiamtely same cost to you) will get buyers agents attention in any market.

I have elaborated on this subject in earlier posts. Even if the buyers agent did not care at all about the higher personal income for herself, the notification of a premium commission rate screams out "MOTIVATED SELLER HERE' who really wants to and needs to sell.

When an agent is tasked with showing their buyer 3 to 5 properties on a buyer tour, and there are 30 properties that meet ALL of the buyers criteria, signals that the seller is motivated help the agent winnow which properties to show.

Finally when the buyer is choosing amongst the properties to offer on, the buyer should be the one to choose which one they will offer on, at that point, you still have to beat the competition on condition and price. At that point the commission bonus is no longer a factor in the decision to BUY. - But it got your home SHOWED>
3 votes Thank Flag Link Sat Nov 17, 2007
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
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Hi John:

I agree with the lower price vs. increase agent pay. In addition here in S.CAL. sellers are offering to "pay down" the interest rate of the buyer's loan. Thus helping the buyer every month for 30 years!

Buyer agents love to show property that a buyer will BUY! This is one of the incentives that work.
3 votes Thank Flag Link Fri Nov 16, 2007
Instead of a Bonus I would definately recommend 1. Make sure that you are on a level playing feild by offering the same Commission as all of the other Real Estate Companies. 2. Instead of Offering a Bonus to the Agent, I would reccommend offering Closing Cost assistance to the Buyer of the Home. This will attract more buyers, because a agent can not force anyone to buy a particular House.
3 votes Thank Flag Link Fri Nov 16, 2007
I don't think offering a bonus will get a house sold. Do you think an agent can force a buyer to buy that particular house?
2 votes Thank Flag Link Fri Nov 16, 2007
Rather than offer a bonus, why not reduce the price? This way the buyer is motivated and after all, agents should give equal attention to a listing, whether or not a bonus is offered.

Good luck
2 votes Thank Flag Link Fri Nov 16, 2007
John,

Natalee should be able to help you with your request.

I agree with the comments of a couple of others, though, that price consideration will do you more good than bonus.

Think about it if you are a buyer and are aware that your agentr is receiving a bonus ona sale. it might cause you to be concerned about whether the advice is truly objective. It's true that there are some areas in MLS that don't appear on some buyer printouts, but I personally believe a Buyer's Agent is ethically required to disclose any bonus situations to the buyer for the very reason stated above.

Good luck! The market you are in can be a tough one!
2 votes Thank Flag Link Fri Nov 16, 2007
Of the answers you have received, Casey Wyatt's was the best. Price your home right, and offer buyer incentives. The two are not incompatible, and doing so affords you a position of strength in the negotiating process.

It will also attract a few more buyers, and likely be more attractive to a buyer's agent than a bonus. Legally and ethically, it should be so at any rate.

You will need to amend the listing to allow your agent to post your offer in the MLS.
1 vote Thank Flag Link Tue Mar 4, 2008
I do tell my sellers that offering a buyers agent bonus is sure to bring out their best selling skills when they show your home. Keep in mind that at the end of the day it is the buyer who determines which home is best for them and their family. Offering a bonus to a buyers agent is not a substitution for being priced competively. You must be priced competively to attract buyers. With their being so many homes on the market a buyers agent bonus is sure to keep your home at the top of the list for showings.
1 vote Thank Flag Link Wed Nov 21, 2007
You would be better off to drop the price by whatever "bonus" you are offering. If you want to draw attention to your home, lower your price. You are, afterall, selling it to the buyers who are looking for deals.

I'm not a proponent of offering bonuses to Realtors.
Web Reference: http://www.dianeglander.com
1 vote Thank Flag Link Fri Nov 16, 2007
John, If your house if listed through a Realtor, let him/her know and they can put it in the private field in the MLS. First you have to get the feedback from the agents that showed your house. What did they think? what did the buyers think? may be it's just a pricing issue, then you would have to be more competitive with that, if not, it could be the way the house shows, tobacco or pets smell? Realtors are usually honest about that. Anything that you can address, and then if it's a question of floorplan or room sizes etc... that's nothing you can do except wait for the right buyer. Also, instead of offering an agent bonus, you may want to offer to pay some of the buyer's closing costs... that's always attractive...
1 vote Thank Flag Link Fri Nov 16, 2007
Wed Nov 21 2007, 18:47 .......?
0 votes Thank Flag Link Tue Mar 4, 2008
Absolutely add a bonus. But remember to bump the price of the house up to cover the bonus.
Web Reference: http://www.homeferret.com
0 votes Thank Flag Link Mon Mar 3, 2008
Your Realtor can have you sign an addendum to your contract with them to authorized the bonus. Then they can put it in the MLS to agents can see it. Then it will be up to the agent to make it known in their marketing. But you still have to have the house in competitive condition and pricing. If you are not competitive in these areas a bonus will not help. Price and condition of the home are far better ways to sell a home than a bonus.
0 votes Thank Flag Link Wed Nov 21, 2007
Just tell your agent that you want to offer x% + a bonus. Normally I'd set some kind of deadline with it and then renew it if needed. Bonus good with closings before December 15th or something like that. There's normally a way in the MLS to put this where the agents can see it. In theory to me this shouldn't work. Realtors should show their clients the homes that work best for the client without regards to special offers, but there are enough hungry agents out there that do look for the bonus that it will sometimes work.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Fri Nov 16, 2007
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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Price your home at the best price for your neighborhood and offer a bonus to the selling agent . Realtors are hungry now and will concentrate on a home they could sell and make more money ! set it up with your Agent
0 votes Thank Flag Link Fri Nov 16, 2007
If you have a Realtor, just let him know. He will advertize that in the Multiple Listing Service, broadcast it to all his agent networks and all the online/print ads he does.

If you are doing for sale by owner, put it on the online/print ads you do.

Sylvia
0 votes Thank Flag Link Fri Nov 16, 2007
Sylvia Barry,…, Real Estate Pro in Marin, CA
MVP'08
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