I understand when someone says spend the money on consessions, but I will tell you that a BTSA works. Now this is a little different than an extra point or so to the Buyers Agent. Some Buyers Agents have a 50% or 60 % split. Don't even thimk that these agents have less going for them than the 90% t0 to100 % KW agents. Quite often these agents are with a Old Time Company or Franchise owner that still believes the Broker should be involved with nor only the listings and contracts in their office but also the marketing cost.
If you pay 1% more to the buyers agent - this falls under the Company split. If you Pay a Bonus to Selling Agent this should 100% go to the selling agent.
Regardless of the fact that the agent is supposed to be imparcial and show properties in the best interest of their client - This BTSA - Usually $1,000 will get their attention and get your property shown faster.

If you have a property that needs to bring the higher price than the norm in your area you need to put a BTSA on it. This way it will be shown, people will see it and then see the value.

And for y'all that say where did you dig this old one up. I just found it and any good question has answers to more than one person.

Marg

Fri May 16 2008, 18:37

I feel if you have extra money you should use it to lower the listing price to compete with other homes in the area. Or as others said, purchase a home warranty or offer the money at closing to help with the buyers closing cost.

Fri May 16 2008, 12:43

You should offer closing cost assistance to the buyer, a home warrenty, or hold an inspection prior to someone purchasing it to make your home stand out from the rest.

Thu Apr 24 2008, 04:43

"Professional Realtors will show their clients and customers ALL of the available real estate inventory that matches the needs of their clients." I tried to do this, but after about 50 houses the client yelled at me. "STOP SHOWING ME SO MANY HOUSES! " " I can only buy one house, and I want to move out of the apartment!"

Wed Apr 23 2008, 23:36

This is a "buyer's market" and incentives offered from the homeowner should be favorable to the buyer of the property .. and not to the selling agent. Professional Realtors will show their clients and customers ALL of the available real estate inventory that matches the needs of their clients.

Wed Apr 23 2008, 16:16

Offering a 4.0% commission to a buyer's agent is a nice incentive for any agent, however, a better place to offer that incentive is to the buyer! Offer to buy down the buyer's loan, pay some of their closing costs or reduce the listing price by 4.0%. The buyer does not know how much you are paying in commission and if you want to selll, I believe you should do whatever it takes to entice that buyer to buy your home because you are willing to help them purchase it. The homeowner's house that may be competing with yours may not be willing to do this and this could make your home more attractive to buyers. Make sure your agent promotes the fact that you are willing to offer some incentive.

Wed Apr 23 2008, 16:04

Gary,

I have always been a firm believer that lowering the price is the best option for sellers...At the right price (as deemed by the Buyer), the property will sell.

However, your market may be different in that you may need to do something "extra." To know if a bonus to the agent is effective in your marketplace, I would suggest having your agent pull all of the pending and closed sales since your home was listed to see if any of those were offering a bonus, higher commission or if they were just the lowest price.

Here in Florida, many of the builders are offering to pay buyer's closing costs, build them a pool or even give them a car with the home purchase...and those same builders offer agents bonuses that match or exceed the commission as well...As a result, we are seeing the new home inventory dropping.

I actually just posted a blog about this very same thing...you might find the "realtor" responses worth reading at:

http://activerain.com/lashawnnorden

With that being said, I think it's safe to say you should know what your competition is doing and beat them at it! Good luck!

LaShawn Norden, PA., REALTOR, ALHS
RE/MAX Central Realty
(321) 377-0157
1135 Town Park Avenue, Suite 1105
Lake Mary, Florida 32746

Wed Apr 23 2008, 16:03

There is no problem with a strategy to increase a selling agents incentive to show your house over what might be a long list of inventory in your neighborhood. However, my personal opinion would be to discount your asking price by that amount you considered offering the selling agent. It will be, after all, the buyer who will signing the purchase offer.

Wed Apr 23 2008, 15:57

Lowering the price is certainly one way ...

Paying the closing costs is another ... giving a $4,000 interior paint credit .. or "X" amount of $$ towards kitchen/bathroom upgrades or remodel .. we once gave a $6,000 credit card at Home Depot, another time we gave a $5,000 granite top credit with the work being done 2 hours after closing ..

We even paid the moving expenses on 3 homes I sold, one move was $8,900 .. so that item has always been a success ...

Anytime the buyer can see an feel an immediate return or bonus in their favor, it gets and keeps their attention ...

Paying extra commissions has the attention span of an Asparagus ... you want the buyer excited, not the agent ..


: ^)

Wed Apr 23 2008, 15:40

I also agree that offering an incentive to the buyers like closing costs would be more attractive to help sell your home. Or you could lower the price which will help your home stand out to the others who are a bit higher priced.

Wed Apr 23 2008, 15:02

This is the way it works if you want a full service agent in this market you have to offer them 6%. Then this agent will be able to give the the full service. Marketing, Open Houses, Advertising, etc. But for 4 % you are asking them to put it on the market and let someone else sell it.

Wed Apr 23 2008, 14:56

I have found in the current market place. The buyers are in control. This is how we earn a living however if the buyer likes the house the agent can ask for a commission they are willing to work for...The 4% is a bonus

Wed Apr 23 2008, 14:52

Offering 4% to the buyer’s agent is not something I would recommend doing. Realtors will shoe their clients the properties that are available in the neighborhoods and price range they are looking for. If you house happens to be one of those homes, the agent will take the buyer to see it.
Realtors have fiduciary relationships with their clients and it is part of our code of ethics to find our clients the house that is right for them, not the house that will get us the most commission money.
Hope this helps.
Juan Carlos

Wed Apr 23 2008, 14:31

DOes not matter what you offer a buyers agent. Realtors are legally supposed to introduce every home on the market.
Remeber you want the buyer not the agent. Give the incentive to the buyers by either pricing it right, pricing in a search criteria that his 2 targets (ex. Never price a home for say 599,999 price it at 600k - it cdaptures 2 seperate targets), offering to pay closing cost for the buyer or a combo thereof.

Wed Apr 23 2008, 13:51

Of couse i love it when i'm on the receiving end of a 4% commission, but the reality is it's the buyer that ultimately has to fall in love with the home, not the agent. It's not like we can pull off some used car salesman tactics and talk someone into making a 200k purchase. If you are serious about taking 1% away from your commission you should reinvest that into the house to overcome some of it's shortcomings to help it sell faster, and make the home irresistable to the buyer. Same thing with BTSA's if you are going to give your income away at lleast do so with giving the house the best chance to sell to the buyers not their agent, unless of course i'm showing the home and you want to give me an extra 1%, and my buyer already loves the home :-) !!!

Best of luck to you!

Wed Apr 23 2008, 12:30

"Higher than normal commissions do not make the house sell quicker " EXCEPT WHEN IT WORKS.

Wed Apr 2 2008, 22:38

Higher than normal commissions do not make the house sell quicker because ultimately it's the buyer who choses the house, not the agent. The buyers have to like the house and if the house is priced right and shows well it will sell.

Wed Apr 2 2008, 22:20

You have a contract after 3 showings? That's excellent. No problem here on the 4% to Buyers Agents. In fact,