Question Details

Ken, Other/Just Looking in California

What do you think of an incentive-based commission for buyer agents? For example, the agent will rebate

Asked by Ken, California Fri Sep 19, 2008

the buyer 1% of his/her 3% commission if the buyer ends up paying the asking price or higher. But (s)he will get a bonus of 1% for every 10% (s)he can negotiate down from the asking price. Does this sound reasonable and practical at all? What are pros & cons? Are there other alternative & innovative set ups?

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it seems that you're incenting the particular agent for showing the most overpriced homes - those are the ones on which they can acheive the highest discount level. Anything that is based on asking price is tied to a completely arbitrary number which has no basis in fact. What if the Agent works REALLY hard to get you into a property that jsut came onto the market and is not supposed to be available for hsowings for another couple of days. The Agent makes calls (and excuses) and get you in early, you buy the property for full asking price, which happens to be $20,000 below market. It may sound farfetched but, it happens, as does th opposite. In your system, your Agent is penalized.

Just my 2 cents, perhaps worth far less to others.

Andy Raffle
http://www.AskAndyRaffle.com
Coldwell Banker Hearthside, Realtors
Yardley, PA 19067
1 vote Thank Flag Link Fri Sep 19, 2008
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