This assumes that you are paying out a customary commission rate. It is also wise not to disincent agents, but if you are paying a customary commission so as not to do that, then the rest should focus on buyers.
Good question - good luck to you!
Unwavering Commitment to Service
Well, different agents have different thoughts about it.....
Remember though one thing,,,,, you are selling your home to a buyer not an Agent....
If you have a reasonable commission that is offered to the coop agent, you should be good there....
In other words it is the price, the condition and location size and upgrades of your home that will bring in
the buyer, or get the Agents attention to show it to their clients..... If a buyer does not like the price or does not like what they see on the internet about your home, the 5000 $ bonus to their agent is not going to make them want to see your home.....
And by law agents should not show or not show homes based on their coop commission or bonus....
But that aside....
Unless many listings around yours, offer 5000 $ bonus to agents, then you may have to....
But I am also assuming that you may want to offer that kind of a bonus attached to having the offer in by a certain date and a closing at a certain date.... so it will be a temporary offer in that case to expedite showings and an offer.....
And it would also be a little easier to give you better advice, if we were to know the asking price of your home.
The higher priced your home, the less interesting the 5000 $ bonus will become....
Hope this helps you a little!
Price reduction usually is best ...... or a bonus with time frame ...... or using that amount for negotiations,
but I do understand that you want to encourage showings....
Take care and good luck
Your Chicago and Northern Illinois Expert
If other homes in your neighborhood are offering bonuses or other incentives, you may need to offering the same or better incentives. Price and condition are the usually big influences and that is why I think you will consistently hear agents say it is better to reduce the price than to offer a bonus to the selling agent. Good Luck!
Prudential Gary Greene, Realtors
However, price is still the biggest driving factor in our current market. If you are priced well and in line or under competition nothing you do, no marketing or increased fees to agents will sell your house.
I would make sure your agent is running a regular up to date market analysis on your property and that you are priced well first from there try increasing buyer agent commission. However, you have to have the right agent working for you that knows how to reach out to the top buyers agents in your area and make sure other agents know about the commission you are offering....basically, there is more to it than just changing the number in MLS.
If you need anything let me know...I am here to help. My video blog also has great seller tips. http://www.JessicasVideoBlog.com.
Jessica Riffle Edwards
ColdwellBanker Sea Coast Realty
In our opinion, since the sale of your home largely depends on the asking price, the $5,000 would be best spent by decreasing the price of the home. Simply stated, your focus should center around attracting buyers not agents..........
If you want some one to buy it, lower the price by $5000. You will end up with the same net (actually more because you will pay less commission) and sell it faster.
The object here is to capture the buyer...not the buyers agent. Make sure your agent has incredible photos of your home in the MLS and that he/she is promoting the property online, within the listing company, and locally...Best of luck~
I can't speak for all agents, however, in my own practice, I don't even look at commission splits or bonus information. I don't feel that I'm doing the best job I can do for my clients if I am focused on the amount of money I could make off the sale -- then it becomes about me, not about what's best for them. Bonuses are always a nice "after the fact" in that it's exciting to know that the extra is going to be there, but I don't put any weight in them. If you aren't getting showings, perhaps it's the price that's off....or perhaps the marketing...but typically it's the price. Have your agent prepare a new and complete market analysis for you and trust the data that you see as well as your agent's suggestions. If you are priced outside the suggested price range, that's going to limit the showings you receive. Agents that are left in the business from the recession are agents that know what they're doing for the most part and the only reason they've survived it is because they A) know their markets and B) know how to market. I once was told by a very dear Atlanta agent colleague that "a list price is like a gallon of milk...it expires after about two weeks!" The moral is to review your list price often...if you're not getting showings, that's telling you to make corrections.
Good luck to you!
All the best,
Susan Crawford, ABR, Broker, e-PRO
Triangle Home Crew Realty, LLC
As noted below.................Price it "right" and make it shine - that's what matters most!
If you are going to offer any "bonus" , offer it to the BUYER, in the form of closing costs, or perhaps towards new appliances (if you need them) or other perks - maybe prepaid taxes or HOA fees, etc..... ....a bonus to the agent, in my opinion, won't ultimately make any difference.
It wouldn't make a difference to me - if your house works for my buyer, I would do my best to try and sell it to them............no buyer-agent bonus can make a buyer fall in love with a home, and want it, no matter how enthusiastic the agent might be!.
Please see my blog for info on pricing your home correct