Is it more beneficial to offer a Broker's incentive to get more realtors to show a home or to drop the price in order to get it sold?

Asked by Audrey Lewis, 75048 Mon Nov 19, 2012

If incentive, how do we offer one? In form of gift cards or a cash bonus?

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9
T.E. & Naima Sumner’s answer
T.E. & Naima…, Agent, Dallas, TX
Tue Nov 20, 2012
First, offer closing costs without lowering the price. Your Realtor should be suggesting this.
When you lower the price, the buyer still asks for closing costs - so offer them now. A reasonable figure to use is 3-4% of the sale price. Some buyers won't be allowed to take more than that.

If the house is priced wrong, the closing cost approach can backfire because the appraisal doesn't make value. Agent incentives can work, but your problem is the Thanksgiving lull. From now until New Year's not a whole goes on in the market. It's not dead exactly - it's just few people want to move or to make deals. You know, the Holidays.

Gift cards can get showings, but what good is that if the buyers aren't seriously interested? Look over your feedback reports and see what they've been saying. If it's the purple carpet in the foyer, do something about that first, and then have your agent contact all those prior showings to see if there is interest.

If the problem is the layout, carefully inspect each room to see that a person can walk through the house without sidling by the statue of David you have in the hallway. Clutter can result in poor showings. If it is just the layout or a garage conversion you did, you're stuck. Only price will cure that - it has to be cheap enough for the buyer to overlook the bad design.
0 votes
Annette Law…, Agent, Palm Harbor, FL
Wed May 28, 2014
Question posted Nov 2012.

If competing with a NEW BUILDER, be aware, the issue IS NOT THE $5,000 bonus.

A seller needs to re-calibrate to create the resources to make buying THIS home EASY.
There are many inexpensive things that can be done.
Consult your REALTOR.
1 vote
Jodie Nobles, Agent, Copperas Cove, TX
Wed May 28, 2014
To gain more showings of qualified buyers I would suggest offering a buyer's agent bonus. In addition, ask your agent to possibly do another market analysis on your home. Make sure your price is competitive in your neighborhood. Another important factor in is exposure and media. Make sure you have incredible photos, virtual tour as well as video of your home syndicated to at least the top 20 websites in addition to the agent placing the home in MLS. If you are competing with new homes, you must focus on the positive aspects of your home that would appeal to buyers over purchasing a new one. Ask yourself what does my home have that new homes do not offer? Mature trees, more upgrades, etc.. Ask your agent to market those things and create a huge marketing presence based on those offerings.

Just wondering now if your home did sell and how it went?

Thanks, Jodie
0 votes
Bev West, Agent, Greeley, CO
Tue Jul 30, 2013
Suggest to your broker to do a "Broker Open House" and offer drawings and other incentives to get the brokers to visit the home.
0 votes
Melissa Hail…, Agent, Plano, TX
Tue Nov 20, 2012
Audrey,
I would suggest lowering the list price. Many agents/brokers are like Sam Young below...they just don't push someone to buy a home that isn't right for the buyer so that they can get something extra for themselves. Additionally, if the price is higher than a buyer wants to spend, they aren't going to go see it - regardless of what the agent commission/bonus is.

If you lower the price, you will have more potential buyers looking at your home.

Good luck with the home sale. If you are not already working with a Realtor, please call me at 214-418-0180 and we would be happy to assist you.

Melissa

Melissa Hailey - North Texas Top Team, Realtors
Coldwell Banker Jane Henry Realtors
214-418-0180
Melissa.Hailey@ColdwellBanker.com

http://www.linkedin.com/in/melissahaileyrealtor
http://twitter.com/#!/melissahailey
http://activerain.com/blogs/mlshailey
0 votes
Mack McCoy, Agent, Seattle, WA
Mon Nov 19, 2012
Good question, Audrey.

Basically, this is a leverage question - rather than reduce the price by 5% and maybe still get a lowball offer, can we get the home sold at a higher price by adding another 1% or so to the broker's commission?

Almost certainly not.

All the best,
0 votes
Sam Young, Agent, Wylie, TX
Mon Nov 19, 2012
I won't bring a buyer client based on incentive. The home has to be right for my client and the condition, location. price and WOW are determining factors. If it is not a home they express interest in, it doesn't matter what the incentive for me, they won't see it. Better to spruce it up and get the price right.

Sam Young
Accredited Buyers Representative
Coldwell Banker Jane Henry. Realtors
(972)837-0788
samsonsay@verizon.net
Web Reference:  http://www.samsellstexas.com
0 votes
really, because we are hearing that our home is suffering because we are competing with a new builder who is luring brokers over with the $5,000 bonus!
Flag Tue Nov 20, 2012
Brent Rice, Agent, Plano, TX
Mon Nov 19, 2012
Audrey, are you selling "By Owner"? If so, I believe your better route for more showings is to list your home with a professional who can bring more buyer prospects as a result of more exposure and target marketing. Besides, they'll most likely keep you from dropping your price or paying unnecessary bonuses. If you have your property listed already by a Realtor, then they should be able to give you the best advice based on market conditions for your area. The answer to your question is ..... "It depends" on a number of factors. Feel free to contact me to discuss anytime.

Brent Rice, Top Recommended Broker
The Rice Group, Inc.
Website: http://www.ricegroupinc.com
214-808-3100
Brent@RiceGroupInc.com
0 votes
Jana Irby, Agent, McAllen, TX
Mon Nov 19, 2012
In today's financing world, it would make more sense to drop the price thus creating more interested buyers.
0 votes
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