Hope-floats, Home Seller in Saratoga Springs, NY

Would it be wrong to offer a bonus directly to an agent that is not mine to sell my house?

Asked by Hope-floats, Saratoga Springs, NY Mon Jul 11, 2011

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You can do anything like that, as long as you disclose it:

What they usually do is put it in the Listing that "Selling Agent gets $1,000 bonus if Escrow closed by Sept. 12th" or "Agents will split bonus of Dinners at Chez Ritz".
It has to be Disclosed,
It will be given to the Agent's Broker,
The broker will usually split it with the Agent
If it's a Dinner, they will usually give it to the Agent.

It would not be a good idea to do it under the table: we Agents would rather not lose our License over a small gift. (Touchey subject)

Good luck and may God bless

ps. thank you for your generous thoughts
1 vote Thank Flag Link Mon Jul 11, 2011
You can certainly offer a bonus to teh selling agent, it should be listed on your HUD and is usually paid to that agents brokerage firm who then pays them.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Mon Jul 11, 2011
The below remark is true. No complication if you put it in writing to yoour agent and he/she puts in in the Multiple listing service for agents! It is very effective with zero comlications if you do it correctly!
0 votes Thank Flag Link Mon Jul 11, 2011
This would be a really novel way to complicate things in a terrible way.
The conditions and compensation for selling your home is already spelled out and displayed in the Multiple Listing Service. Modifying this CONTRACT with verbal instructions can put you in a real bind.

If you are considering a bonus, make absolutely certain your agent knows and includes such promotions in the compensation section of the listing. This is why home sellers are often advised to not be home during a showing. You truly can create a problem for yourself, your agent and broker. Bonuses are excellent options when applied properly.
0 votes Thank Flag Link Mon Jul 11, 2011
Dear Hope,

A selling agent bonus with a time limit is a great tool to use in terms of getting traffic through your home. This has been a very effective tool for my sellers, either right from the onset or if we are getting showings but no offers. The buyer incentive rarely works as buyers are going to negotiate the price off of the home. The incentive will help you to attract agents who otherwise may have overlooked your home. Do keep in mind that the offer that you accept must be within a certain time-frame and acceptable on all terms. Please free to contact me or have your agent contact me to discuss.

Good Luck!

Frank Dolski MBA, ABR, e-PRO
Associate Broker
CARTUS Certified Relocation Specialist
Previews Luxury Home Specialist
Coldwell Banker Hearthside Realtors
215-803-3237 (mobile)
215-794-1070 x-103
f.dolski@cbhearthside.com
http://www.FrankDolski.Com
Web Reference: http://www.FrankDolski.com
0 votes Thank Flag Link Mon Jul 11, 2011
As a buyer's agent (the selling agent of the property), I would rather see the bonus being offered to the buyer.
In New York we have such high closing costs, high taxes, hgher insurance than most of the country...if not the highest.
Anything that would make it easier for the buyer to be able to actually pursue financing the purchase of your property...helps the buyer agent in the long run.
A healthy cooperative broker compensation will compensate the buyer's agent.
A bonus for the buyer could help the buyer with financing...closing costs or points to buy down their rate...or it might even afford a buyer the chance to change that flooring that they might not like.
Good luck to you!
P.S. I total agree with Anna that you have to address your listing price...an over priced listing with a bonus for the buyer will still have a tough time in this market. Make sure that you are priced competitively, if not below, in order to sell your home and not someone else's home. There is a record amount of inventory on the market...it is a beauty pageant out there...with well informed and savvy consumers.
0 votes Thank Flag Link Mon Jul 11, 2011
Hope,
Anna is right...offering a bonus to an agent isn't gonna make your home sell faster and shouldn't be a reason for agents to show prospective clients your property. Of course it is nice when it works out that a buyer wants to move forward on a home and an extra bonus is offered. I assume your home is listed through our local MLS, if so it may be worthwhile to reduce your asking price my whatevr you were looking to offer as a bonus, say $1000 dollars. Even this small change will get your home seen by agents again for a few days when they look at homes that have changed price. Depending on what your current asking price is, you may think of lowering it just below the next 10k increment. (your listed at $284,900...drop to $279,900) Again, you will open the listing up to a new pool of buyers that may have never looked above $280k. Ultimately, price and marketing will determine when your home is sold; they both have to be done to sell a home. Best of luck

Sincerely,
Jason Bustelos; LREB
New York Realtor Group, LLC
518-330-2230

http://www.nyrealtorgrp.com
http://www.nyhomes4sale.com

jbustelos@nyrealtorgrp.com
0 votes Thank Flag Link Mon Jul 11, 2011
Keep in mind that a home is worth what someone is willing to pay for it; it doesn’t matter what the seller needs or potential buyers can afford to spend; with that said, rather than offering a bonus, consider reviewing comps--recently sold similar properties in the immediate area; if your price needs adjustment in order to be competitive, adjust accordingly....
0 votes Thank Flag Link Mon Jul 11, 2011
In addition to offering a bonus to the selling agent, also consider offering one to the buyer. Most loans allow the seller to contribute towards the buyer’s closing cost. Interest rates are at record lows, adding a couple of points would allow your Realtor to advertise a ridiculous payment. The majority of buyers purchase a payment they can afford, not the house (everyone thinks it is the house – even the buyer, it isn’t - it is payment first then the house). The more you lower the payment the larger the pool of buyers that will qualify for financing. Good luck.
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Mon Jul 11, 2011
It's done all the time; but your agent should indicate on the listing that a bonus is being offered to the selling agent.
Also remember to time limit the bonus.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Mon Jul 11, 2011
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