okay...i dont want to shoot myself in the leg here, but do you think offering agents a bonus for selling a listing helps to get it sold ???

Asked by Rick Stroud, Greer, SC Sun Jun 3, 2012

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11
Damian Santos, , Miami Beach, FL
Mon Jun 4, 2012
Position your listing to be sold! Lower the price... Done! if is over price there is NO bonus that will make a buyer buy the listing, simple.
1 vote
Annette Law…, Agent, Palm Harbor, FL
Mon Jun 4, 2012
There it was! A listing appearing on the Mid-Florida MLS with a $1 compensation.
Just think of the consequences had I not looked at that entry until the HUD-1 was published.
If you are NOT looking at the compensation you are a ship looking for a rock.
And it will be a fantastic wreck!!

A bonus is an excellent option since it usually pays for the new carpet my buyer believed they needed. Bonuses have a tendency to disappear, however, in the negotiation process.

Agents get more motivated due to increased compensation, not bonuses. Compensation, that part that does not get negotiated away.

An earlier posted inquired about the number of showing and hours each buyer averages. The average jours ranged from 40 to 60 hours per closing. I think a smart agent will most certainly have concern for compensation.

But bonuses...not so much.

Does it get the home sold? NO. a bonus in any shape does not compensate for deficiencies in the home. Increased compensation does, however, help the agent like the home as much as the buyer.
1 vote
Joan Lorberb…, Agent, Boca Raton, FL
Sun Jun 10, 2012
Some here may disagree with me but I do believe that if the market conditions warrant (say an over abundance of supply in a given condo development) and if the seller is very eager to effectuate a quicker sale then offering either a bonus or an increased commission might very well do the trick.

A bonus or increased commission rate will usually catch the attention of a selling agent as they are reviewing which similar (size,price, condition) properties to show their buyers. Let's say there are 12 or more similar properties and there's only time to show a buyer 6 of them then it's likely that the one with a bonus will catch the agent's eye & it will get shown. If the buyer decides that the home with the bonus is the home they want to buy then the selling agent can decide if they want to keep all of it or rebate all or part of it to their buyer.

JOAN LORBERBAUM MOORE
Broker Associate, GRI
Lang Realty
9858 Clint Moore Road
Boca Raton, FL 33496
0 votes
Kawain Payne, Agent, Seal Beach, CA
Wed Jun 6, 2012
Hello Rick,

I think agents should do their job regardless of a bonus!

We are obligated to represent our client's best interest not "ours".


Kawain Payne, Realtor
0 votes
I agree, Kawain: An agent's "bonus" is their commission. The harder they work, the more listings they can sell.
Flag Fri Jun 8, 2012
Carmen Brode…, Agent, Scottsdale, AZ
Mon Jun 4, 2012
Yes it definitely brings additional attention to the property. Just human nature I guess.
0 votes
Gloria Rodri…, Agent, Miami, FL
Mon Jun 4, 2012
It depends on the market.

We just did the math in our office last week, and there is currently only 4 months of inventory in Miami at the moment, therefore, it is a Seller's Market down here due to the influx of cash from Europe and Latin America.

Why would anyone offer a bonus, when every seller and landlord is getting bombarded with offers? I had a seller's agent who recently announced that they would only show the property to the buyers who were willing to offer above appraisal. Needless to say, my buyer passed on that one (and there could have been a $10,000 bonus on it, and it wouldn't have mattered), but there were plenty of others who jumped in, and with cash!

In a Buyer's market? Not sure. It could, in the very least, get you into the "showing list" more often.

Investors, on the other hand, are a whole other story, usually unaffected by the ups and downs of the market, and looking at the properties from a detached perspective. Most of them depend on their agent's judgement, and some literally buy just from the agent's recommendations and a few online pictures.

In this situation, if the property with the bonus is a good investment and is well priced, an investor's agent might be more likely to recommend the property in question vs. another similar property, as long as the cap rates make sense.

Hope that helps!
G.

Gloria Rodriguez de los Reyes
Avanti Way
(305) 229-1146 Office
(786) 322-9438 Cell
0 votes
Lee Taylor, Agent, Decatur, GA
Mon Jun 4, 2012
No, absolutely not.

Bonuses get in the way of win/win transactions.

Good answers - thumbs up to Damian and Annette.
0 votes
, ,
Mon Jun 4, 2012
I have seen agents fight to get a bonus, nothing wrong with that idea at all.
Jim Simms

NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
0 votes
John Souerbry, Agent, Fairfield, CA
Mon Jun 4, 2012
Of course a bonus helps get a listing sold, and in a very ethical way.
Sure, buyer's agents should always show their buyer every listing that fits their needs, that's obvious.
But I believe the offer of a bonus in addition to a reasonable commission will drive some agents to go out a find a new buyer for a property when none of their current buyers is right for it. And that's a good thing for the buyer, the seller, and the agent.
0 votes
Ron Thomas, Agent, Fresno, CA
Sun Jun 3, 2012
Come on;
I can defend my associates to the hilt; but Realtors are human too.
There is a man or woman in America who won't work a little harder when there is a carrot on the end of that stick.
Some Sellers, here on Trulia, talk about doing it them selves, taking part of their Agent's commissions, or Listing for a reduced amount:
Is anybody so naive that they think these will work in the long run?
Will they negotiate with the Plumber or Auto Mechanic when they need some work?
0 votes
Pacita Dimac…, Agent, Oakland, CA
Sun Jun 3, 2012
No...it's a nice thing to do, but most agents will show properties that meet the buyers' requirements.It all depends on price, location, condition....it doesn't really excite me that much to know there's a bonus if the property isn't right for the buyer.
0 votes
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