Hi Christi -

Homes fail to sell for one of three reasons: EXPOSURE - PRICE - APPEAL. Before you start offering bonuses get your agent to detail how the home is being marketed. It better be out there for buyers to find as well as agents - I sell about half of my homes from buyer hits alone. Next is appeal - would you buy your home as it sits? What is there to exploit and what is there to overcome? Last is price - if it's overpriced forget it. The market cares not what you paid, think, or owe - buyers will tell you what it's worth right now. If you're not getting traffic through the door then look at each of these issues.

I've been doing this since '89 - I'm an associate broker as well as certified appraiser. We're selling homes and doing fine even in this market - have a look - http://www.hrmiller.com. I can give you a desk top opinion if you like. This isn't rocket science :) Hank - 678-428-8276

If the price were 174,900 i would strongly recommend ratcheting it back up to $175,000 to get the listing into both the 175,000 to 200,000 search and the $150,000 to $175,000. at $194,900 or 195,000 it makes less difference. the brackets are usually not that close together, but for those few that are the extra $100 could bring you a wee bit more exposure.

I always come down contrarian on the $2000 bonus or above average buyer agent split. And here is why a good agent who needs to quickly narrow a search of a 100 comparable competing properties to show a buyer just 3 or 4 of them on any given Sunday, can use that search field to determine the sellers level of motivation.
This is a proper criteria for the buyers agent to take into consideration. A seller offering the bonus has signalled that they are more motivated than the average seller to do what it takes to move the property.
Knowing this is in the buyers favor (and in the buyers fiduciary interest) as it signals that the seller is most likely to cooperate on items such as inspections, lender required repairs, closing and occupancy schedules, perhaps even on closing costs. It is up to the buyer if they like the houses they see. The bonus makes it more likely they will see the house.

Even if an agent is motivated by the carrot of increased income, and unaware that the representation of their buyer is improved by favoring the bonus house over (all other things being equal) - competing house, they are providing improved sevice by adding the bonus house to the tour.

Christi... do not get hung up on those that are currently for sale because if they are not selling then they are not priced right. Pay close attention to the homes that have sold within the last 30 to 90 days (the most recent comparable homes to sell) as you want to be priced below those homes as the market is still correcting.

Appraisals are great but they do not show what a buyer is willing to pay for a home! Your traffic or lack there of will be your communication on your homes value... you never have the opportunity to negotiate if you never get an offer!

Also pay attention to internet price points... is $194,900 going to get you more buyers or would $195,000. Pay attention to where the buyers are looking based on what is selling! You could be missing buyers by a small amount!

Thanks for the responses. You all had some very good ideas. We just lowered the price $5000 to make it more competitive. There was a private appraisal done on it last month and his comments were 'home in great condition'. The bonus was just an extra incentive for the agent. It is only two years old and over 2700 sq ft, 5bed/3 bath priced now at $194,900...so I think that is pretty competitive. Other homes in the s/d are asking $100+ a sq ft. I appreciate the comments, they really help.

Christi... making sure your home is priced to sell is going to help you sell. Buyers are not influenced by an agent bonus. Even for those agents who are influenced by an agents bonus, if their clients do not perceive your home as a value or do not want your property you will not receive an offer.

Christi,
It might help selling agents to show that piece of property over ones they would make less money. That is another marketing tool trying to get agents to show your house. I dont know if lowering your price by 2,000 will help sell if faster over the 2,000 to the selling agent. You could also try to make $2,000 going toward buyers closing cost instead of selling agent to help cover the cost for the buyers end. On your listing state seller will pay up to 2,000 of buyers closing cost. That might get some future buyers interested in looking at your house.

Just lower the price of your home. Someone will buy it.

Most likely no. If you look at the $2,000 as a component of value that you are willing to contribute to secure an acceptable offer, I would consider the following options:

1. Lower the price by the same amount
2. Invest the $2,000 in the property to address any issues (if any) that may be detracting from the quality of the home (new appliances, carpet, paint, windows, landscaping etc.)
3. Offer to buy down the Buyers interest rate (talk with a mortgage lender and create a scenario that would provide an example of how much the rate could be lowered).
4. You can get creative - Offers to buyers could include things like: New plasma TV, airline tickets to anywhere, Several years of lawn care service, furniture store credit etc.

A lot depends on the price point of your home. If you have an entry level property and the expectation would be that most people interested in your property would be first-time home buyers, than anything that helps them close the deal: lower price, interest rate buydown, credit towards lender pre-paids etc. are likely to carry more weight.

If you have a more expensive property tat would be considered a move-up home, than condition/age of mechanicals, systems etc. is more important. In this case some of the more interesting "creative" ideas could work to draw attention.

Vito Boscaino
Managing Partner / Realtor / MBA
Help-U-Sell North High Realty
Columbus, Ohio 43214
614.447.3050 office
http://www.servingcolumbus.com
http://vboscaino1.point2agent.com
http://northhighrealtyhelpusell.blogspot.com
http://northhighrealty.helpusell.com

Christi
If you are paying your realtor ample to offer fair market pay to a buyer's agent, that is all that is necessary.

An agent working with any buyer can not Force that buyer to like a house and enter into contract, bonus or no bonus.
(Put the buyer hat on your head for a moment, could an agent force you into contract on a specific home that you did not want to place an offer? The answer is, No.)

Agents realize that bonuses are the 1st to disappear during contract negotiations.

To sell your home in this market.

1) Price agressively at value.
To evaluate your property only use closed sales within the past 3 months.
Most lenders are instructing their appraisers to use comps no older than 3 months.

2) Price at value.
Most people want to price at value +.
Buyers are out there and they are buying.
They are looking at the best deal they can get within their parameters.
By pricing at value while your competiton is pricing at value +, the buyer will perceive (in his mind) your house to be the best deal, and will most likely make offer on yours 1st.
Of course the buyer will come in low.
But if you have priced at value, the buyer will realize that via his shopping experience, and your counter will be more readily justified (in his mind) as reasonable and acceptiable

3) Have your home in good condition and showing well, uncluttered and clean

4) Have your home accessible for the prospective buyer's schedule

5) Pay your realtor enough that they can offer a competitive co-broke pay to the agent working with the buyer, that they can afford to front agressive marketing moneys on your home, and that they can be paid fairly for their represention, direction and expertise.
A realtor's job looks easy when everything goes smoothly, but the expertise of a good knowledgeable experienced agent kicks in whin hiccups to tansactions arise (kind of a knowledge and experience "insurance policy" to a get the transaction closed as opposed to a transaction needlessly falling apart)

Best of luck on the sale of your home.

Christi,

I can not speak for all agents but for me personally, I do not look through listings and try to push the ones that offer a broker bonus. I look at all the listings equally and that is what my buyers are going to see. So I agree with Jushua that a price reduction or maybe an incentive to the buyer may work better. Take that money and use it as a no payment for the next six months kind of thing for the buyer, which is called a buyer bonus. Have your listing agent contact her/his lender and talk about other ways to attract the buyer using that $ 2000.00.

Good Luck!

Let us Know how things go

A price reduction might be more effective. You need to check with your Realtor, if they are a professional, then they should be able to show you trends that will suggest if an incentive will help or not. It doesn't hurt. In general, markets and areas where Realtors have more control over what their buyers look at, are markets that incentives work well. Lithia Springs may have a few pockets where this will work well, but on average, I would suggest putting the 2000 to the buyer, cleaning or repairing the home, or off the price.

Christi. I don't know about Georgia, you might want to check with several realtors and get their opinions, but out here in the midwest, I have seen a variety of added 'incentives' to try and entice buyers to select a specific property. Although the incentive itself will not 'sell' the property, when all things are equal in choices, the buyer would take a choice that has more benefits than less benefits. Other incentives that have been added in the marketplace include, 3 months mortage payment made by buyer, cash bonus to buyer at closing, and price reductions of course. So some of these may work in your market, but I suggest that you consult with your local realty professionals and ask them 'what' works in your specific area. good luck.