Home Selling in Chula>Question Details

Charlotte, Home Seller in Chillicothe, MO

In our area it is common to pay a 6% commission. Would a $2,000 bonus to the selling agent, bring my property to a priority as a property to push?

Asked by Charlotte, Chillicothe, MO Fri Oct 15, 2010

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Are you getting showings on your home? If the answer is no, then the price may be too high. If the answer is yes, here's an interesting twist (my broker suggested it and I thought it was brilliant) find out what makes the potential buyer tick, did they love the family room? Were they imagining where they would put, for example, a pool table, video game console, or bar? Then offer to include one if they make an acceptable offer and close on the house. Pre-determine an amount of money you would be willing to invest in such a 'bonus' and offer it directly to the buyer. You mentioned $2,000. Maybe that is your price limit. Think of some things you may be able to include that will be the icing on the cake for the buyer! New appliances? Granite countertops? Patio furniture? I like the idea of a home warranty if they are afraid of repairs, but that's a little boring. Here's the thing, people may dream of having, perhaps, a home theatre set up in the faily room, but it's something they would probably never buy for themselves, so buy it for them. It's like making their birthday wish come true.
0 votes Thank Flag Link Sat Oct 16, 2010
Motivate your potential buyers. Offer a great incentive for them, realtors are getting a very nice commission when they sell. Have your realtor run a new marketing incentive and offer buyers a cash allowance at closing (and put a deadline on your offer). They can then buy something they want for their new home. If your carpeting needs to be replaced, offer a flooring allowance -be creative or better yet, encourage your realtor to be more creative. It pays to work with a realtor, but make certain they are honoring the agreement and marketing your listing!
0 votes Thank Flag Link Fri Jan 21, 2011
Keep in mind that commissions are always negotiable between you and your agent--there are no set standards--Instead of a bonus, consider a very fair priced property instead--pricing and marketing that maximizes your exposure, will ultimately bring buyers--after all a home a worth what someone is willing to pay for it, not what the seller needs or potential buyers can afford to spend--market conditions do matter--review comps--recently sold similar properties in the immediate area--review currently available similar properties in the immmdiate area--make sure you are competitively priced.
0 votes Thank Flag Link Sat Oct 16, 2010
you are marketing your home in multiple ways
1) to buyers on line who will see the on line marketing and want to come see your home in person. Here you need to really look at what's on line about your home (keeping in mind that the Realtor had limits with the number of characters and pictures that they can post on many sites), but making certain that it is appealing
2) To the realtors who will be bringing their clients to your home. For some realtors, a bonus or a higher commission rate can tip the scales with which homes they make a bit more of an effort to show to their clients and encourage their clients interest in. Your added bonus would encourage those Realtors to show your home
3) to buyers in person - here you need to visit your competition and check out their price points and make sure that you are really competitive. Drop your price if you aren't. Do the repairs that need to be done to your home so when they walk in the door it looks move in ready and they aren't seeing lots of little stuff that makes them feel that there is probably big stuff that needs to be done as well. Make sure that if everyone else in the neighborhood has granite countertops or tile floors you do also (but DO NOT over improve for the neighborhood as you are moving out and price yourself out of the neighborhood in the process). Decorate for today, not for 30 years ago - look at magazines and display homes, fresh paint, clean clean clean. Use color accents. You are moving anyway so pack it up and put it away - a stack of boxes in the basement is NOT a deal killer, they now you are moving, but having too much stuff out is. Hire a stager to help you fix up your home.
Web Reference: http://www.YourSTLHome.com
0 votes Thank Flag Link Sat Oct 16, 2010
I can't comment on the customary commission rate in your area, and you will find that most agents will not - and frankly should not - in a public forum as commission is not a set rate, but rather negotiable. Nonetheless there are customary patterns of all things, including commission, so I'd talk directly to local agents about that. You can certainly find them here - if you are already listed, then talk to your agent on this point.

On to agent bonuses, I could not agree more with the prior posters - your goal is to incent buyers - and while you need to reach agents to get to buyers, you should have no problem if you are offering a fair/customary commission rate. Sweetening that up with a $2,000 bonus will have little impact - bonuses are viewed as compensation and must be paid through the agent's broker - and when they are, they are hit with the same split as the commission which dilutes that bonus further.

In this market, price is the driver. Focus there.

Good luck to you,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Sat Oct 16, 2010
The $2,000 bonus can definitely push an agent to look at your property first to sell when an agent is doing a property search in a set price range. Your home has an advantage over other similar properties for an agent. If you are looking to appeal more to a buyer you can purchase an extended home warranty. Buyers are attracted to 2,5, or 10 year home warranties that guarantee an insurance company will pay for specific repairs during that time frame. In my area the warranties sell for $350 a year. If you purchased a 5 year warranty (this is transferable to the new owner) it would cost you $1,750. So the real question becomes are you trying to appeal to a selling agent or to buyer?
0 votes Thank Flag Link Sat Oct 16, 2010
Charlotte,

Unfortunately, selling bonuses of this nature only appeal to the agents and have little impact on the actual customer. Our advice to sellers that are considering this alternative is to decrease the asking price by the amount in consideration.

This will have greater impact on the party who's attention you are seeking.....the buyer!

Good luck,

Bill
0 votes Thank Flag Link Sat Oct 16, 2010
It could help. I agree with Monir that to sell it quickly, its important that the property for sale is, priced right. Major factor in selling it quickly.
0 votes Thank Flag Link Fri Oct 15, 2010
Charlotte,
It may help but pricing your home correctly would definitely move it quicker! If it is priced right and you offer 6% plus $2k, it should move quick!

Good Luck!
Frank Dolski
0 votes Thank Flag Link Fri Oct 15, 2010
Sure would! Agents have limited time to show all their clients every property. This may be just the thing to spur a little extra push and a little extra interest. At the very least, you will get more previews and have more agents aware of your property. Never hurts to sweeten the pot a bit.
0 votes Thank Flag Link Fri Oct 15, 2010
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