Home Selling in 28403>Question Details

Seller, Home Seller in 28403

If I offer the selling agent $5000, are agents more likely to show my house? Is offering a bonus worth it?

Asked by Seller, 28403 Mon Aug 9, 2010

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19
Just a quick thought- When I see an incentive to an agent in the private remarks of my MLS, it makes me think that there has been little activity on this particular property and that I have a better chance of negotiating a stronger deal for my buyer. I think you will get a better result to reduce the price of your property to fair market value (or little under) to stimulate interest and solicit offers from buyers. Check with your local professional to see if this technique is effective in your market, but I know it is extremely effective in my market.

Good luck!

Gregory Masi
Gibson International
C: 310-488-4880
E: Gregory@GregoryMasi.com
1 vote Thank Flag Link Fri Aug 13, 2010
I agree that incentives should be directed to buyers - so rather than offering a "bonus" to the agent, reduce your price to entice buyer activity and hopefully offer(s).

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!
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Fri Aug 13, 2010
Hi Seller,
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
Edith YourRealtor4Life!
Your Chicago and Northern Illinois Expert
0 votes Thank Flag Link Wed Aug 11, 2010
I have a different spin on the subject. I think the answer will also depend on what your competition is doing. For instance, if you are in an area where there is a lot of new construction competing with resale homes, the builders often offer incredible incentives to the buyer and buyer's agent. This makes it hard for a home owner to compete. Sometimes offering a bonus might help generate the activity you might have missed out on. With this said, most agents can not sell a house to a buyer that the buyer does not want to buy. If the house is over priced or not in "Show" condition, then the buyer will not want to buy a house just so their agent can get a bonus.

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!


Thalia
Prudential Gary Greene, Realtors
Houston, TX
0 votes Thank Flag Link Mon Aug 9, 2010
Lots of good answers, and I think most of us agree: offering a bonus isn't what you need. A property will or will not sell for a number of reasons. Price plays a big part, but the location and condition of your property can affect how fast it sells as well. Take an objective look at your property. You can't do anything about the location of your property, you can, however, make it more attractive to buyers, repair anything that doesn't function properly, and price it properly.
Good luck,
el
Web Reference: http://elbrant.net
0 votes Thank Flag Link Mon Aug 9, 2010
I would suggest increasing the buyers agent commission and not offering a bonus. A higher commission percentage to the buyers agent will definitely be more attractive to buyers agent showing property. Everyone is human and if you can get paid more doing the same job and all you have to do is sit at a different desk which one would you choose?

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
http://www.TheCarolinasFinest.com
910-352-1043
0 votes Thank Flag Link Mon Aug 9, 2010
I think the bonus is just that... A bonus. Offer the discount to the Buyer not the agents. Good Luck!
Web Reference: http://www.liveojai.com
0 votes Thank Flag Link Mon Aug 9, 2010
Seller,

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..........

Good luck
0 votes Thank Flag Link Mon Aug 9, 2010
All of these answers resonate true, but let me add just one thing. When you hear all of these professionals saying price it right, I'm sure you understand that means price it by recently sold comparable homes. To do that tell your agent when they do your current CMA to pick the 3 homes in your market and area that are as close to your property as possible (i.e square footage, lot size, condition, amenities, etc.) Then you two go walk through these properties just as if you were a buyer looking to buy a property. Actually walk through and look at your competition. Then you'll know exactly where your price should be.
0 votes Thank Flag Link Mon Aug 9, 2010
I think you'll agree... you got a consensus that says ... no, the bonus isn't worthwhile... price it right, and stand back.
0 votes Thank Flag Link Mon Aug 9, 2010
Alan May, Real Estate Pro in Evanston, IL
MVP'08
Contact
I always advise clients not to put an added incentive to brokers--just make it in line with the other homes you are competing with...If your home is competitive, take the $5K and put it into your new home.
0 votes Thank Flag Link Mon Aug 9, 2010
The most important thing to remember is that an agent representing a buyer must put the buyer's needs and criteria first. If your home fits the needs of a particular buyer, then it will be shown regardless of whether bonus money is offered.
0 votes Thank Flag Link Mon Aug 9, 2010
Are you paying $5000 for showing your house? I'll show over and over.

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.
0 votes Thank Flag Link Mon Aug 9, 2010
I agree with Scott, if your home is not priced right, it won't make a difference whether you offer a bonus to an agent or not. Of course, you want agents to show your home, and if your house is priced right it will get shown, possibly more if a bonus is offered. But the key to selling a home in this market is to price it right to begin with. I hope this helps.
0 votes Thank Flag Link Mon Aug 9, 2010
You should not feel you must offer an extra incentive to the agents to sell your home. The $5000 would be better spent in upgarding your home to make it the absolute best property in the neighborhood, zip code, price point, etc. Once your home is the best priced, condition, etc, it should sell. Have your agent check the absorption rate so that you know the number of months of inventory currently on the market. PRICE IS KEY TO SELLING!

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~
0 votes Thank Flag Link Mon Aug 9, 2010
Hi Mr/Ms. Seller,

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
Broker-in-Charge
Triangle Home Crew Realty, LLC
919-491-4663
0 votes Thank Flag Link Mon Aug 9, 2010
Hi seller
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!.

Best wishes........
0 votes Thank Flag Link Mon Aug 9, 2010
The most important thing you can do is to make sure your house is priced at or below market value. have your listing agent complete a new broker price opinion so you see what houses in your area are selling for and what they have sold for. Once yoru house is priced right, then a bonus to a selling agent always helps bring about interest from agents, but being priced right brings about offers from buyers.

Please see my blog for info on pricing your home correct
0 votes Thank Flag Link Mon Aug 9, 2010
NO !

See if you can make your property by providing more detailed information. Various report are available from HouseFax Report folks...
0 votes Thank Flag Link Mon Aug 9, 2010
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