Jr, Both Buyer and Seller in Denville, NJ

Looking for opinions on paying a commission incentive for a fast sale

Asked by Jr, Denville, NJ Fri Feb 22, 2008

I work in corporate America, and have seen that the right incentive plans will drive the desired behaviors/outcomes.
I am considering selling my house, and would like a fast sale for a variety of reasons. Assuming that the property is priced appropriately…
Does it make sense to offer a commission incentive if the house has a signed contract within some specified period of time? For example, if the standard commission for my selling agent is 3%, I may offer him/her 3.5% if we have a signed contract within two weeks (defaulting to 3% after two weeks).
What are your thoughts? Do you think this would motivate the selling agent to more aggressively market the property? Or, is this his/her job anyway and extra incentive is inappropriate?

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Answers

39
Alan May, Agent, Evanston, IL
Fri Feb 22, 2008
I do not honestly believe that incentives to the buyer's agent are the least bit successful. Buyer's agents will show the property that fits their clients. Period. A buyer will not buy your property simply because you're offering a "bonus" to the agent, nor will they come look at a 2 bedroom, when they need a 3 bedroom due to a bonus.

Yes, the bonus might put you on the list of viewings, but if you fit the parameters of the client's search, the likelihood is that you'd have been on the list anyway, and you've just wasted an incentive bonus.

Save the incentive, and use it to either reduce your price, or somehow enhance your listing... (add granite, fix the bathroom, replace the tile in the foyer)... a buyer's agent incentive is a waste of your money, and could be better spent elsewhere.
3 votes
Deborah Madey, Agent, Brick, NJ
Sun Feb 24, 2008
If the additional funds you are paying the listing agent are for increased marketing expenses to provide additional exposure, it makes sense. That is not a bonus, but rather a higher fee for additional services. Example: As a listing agent, I pay for premium positioning on various real estate search sites. If you are paying a higher fee on the listing side because you are receiving more exposure, it will increase your oppty to have more buyers come through your property. If the property is overpriced, this will fail. No amount of marketing will sell an overpriced property. It comes down to price and exposure.

You need not offer a bonus to either a buyers agent or the listing agent. Negotiate your fee for the listing side based upon the services and quality of representation. You might pay slightly higher for a better end result. On the buyer agency coop, pay the amount that is competitive for your market area. You need not go over the top, but make sure you are competitive. A lower than competitive commission may reduce your showings by losing viewings when your property only partially meets the buyer criteria. With a low buyer agent commission, you will still get showings to buyers when your property is a perfect match. Since many buyers buy properties that are slightly different than the perfect match, it doesn't make good business sense to eliminate part of the buyer pool.

Seller side: Pay based upon the negotiated rate of what you will get in terms of both quality of representation and marketing exposure. Don't hire based upon who tells you the "highest price".....Price right..........an overpriced listings nets the seller less as a result. Price right for highest and best price/terms and quick sale. Price and exposure.

Buyer side: Pay competitive rate for your area.......Your listing agent can guide you for your area.

Best of luck in the sale of your property.

Deborah
2 votes
Gary De Pury, , Pasco County, FL
Sat Feb 23, 2008
I have to disagree with the previous answers, and that is unusual considering the quality of the folks who have answered in this blog. (Maybe I am spending too much time here, but I am beginning to notice who is good and who is full of carp. Yes the fish)

Anyway, for sake of this argument, I am going to call myself the CEO of GARY REALTY.

I have 50 REALTORS and 200 houses listed. All of those houses are relatively equal in price, value and size. Spread across greater DePury-town.

I take 20 of those houses and add an incentive to the BUYERS SIDE. Those houses are going to show about 8% than the average house.

Here is why, if a REALTOR is showing houses in an area and there is a house down the street that is paying an extra 1% or giving away a cruise, then that REALTOR is inclined to show that house. ESPECIALLY if that house is slightly less than the other houses he is showing. He can save his client money and still earn the same, or maybe slightly more….Now tell me how that doesn’t give you a slight edge.

I do agree that your house must be in show ready condition. This is one of those things that is only going to put you over the top…not to the top…so make your priority list, but if all else is done, just like corporate America, REALTORS like incentives too.

Oh, and it is not a violation of the code of Ethics…many of us think it is, but entire legal battles have been fought and lost.

I have no obligation to show someone a house that will not pay me what I expect to earn…..(that is why I am filthy stinking rich….and eating Carp for dinner)


Thanks
Gary De Pury
Broker-Owner
Bay Vista Realty & Investments, Inc.
Chairman, Communications Committee
Director, Florida Association of REALTORS®
2 votes
Marc Paolella, Agent, Succasunna, NJ
Fri Feb 22, 2008
Hi Jr,

I wouldn't waste the money. A commission bonus is not going to help you sell faster. Most buyers are finding their own homes on the Internet, then calling their agent for price evaluation, negotiations and transaction management. Agents rarely pick the house anymore, so offering a bonus isn't going to accomplish much.

As far as motivating your agent, if your agent isn't honored and highly motivated by simply getting your listing in the first place, you have the wrong agent.

You shouldn't need to motivate your agent. You DO have to motivate the pool of appropriate buyers. That is accomplished by an aggressive price that makes your home a bargain compared with the competition.

If you haven't selected an agent and are considering interviews, please visit my website and interview me for the job. My program is as aggressive as it gets.
Web Reference:  http://www.marcpaolella.com
2 votes
Monir Mamoun, Agent, Denville, NJ
Thu Aug 5, 2010
Small incentives like $25 gas card to show the property to a customer will help -- this brings out realtors with their customers early on. You can make it on a specific day to really create a sense of competition among buyers.

Get real independent appraisals and have the courage to price the home a couple of percentage points below that. In this market you absolutely must -- MUST -- price your home accurately in Morris County to have even a chance of sale. And if you price a couple of points below, it will induce multiple offers. This will help you get back to market price. If there is ONE thing and ONE thing only that you do, price just below market value and DO NOT lose the critical 2-4 weeks of initial listing that MOST sellers lose with the false notion that they can "try" a higher price and reprice down if it does not sell. Your chance of finding a buyer that just "falls in love" with a house is almost zero when there is so much inventory around, and when the market is so soft. Just price it a bit more cheaply than the competition and the probability of a fast sale at market value is QUITE high. There are buyers out there but they are all hunting for bargains. Put yourself in their shoes, and they will put themselves in your house. It takes tremendous courage to price a home just a little too cheaply, but ironically you'll get better results in this market than in a good market. It also would not hurt to write "motivated seller" in the listing. You'll get high interest and likely multiple offers will quickly help cancel out the lowball effect.
1 vote
Jeffrey Halp…, Agent, Hopatcong, NJ
Wed Aug 4, 2010
Dear Fellow Denville Resident:
You need to understand that it is the buyer that needs the incentive not the agent. An agent, by law, is required to introduce all homes to fit their buyer's needs. Couple that with the fact that 90% of buyers start their search on the internet, the buyers are your only target.
Buyer's look at value, so take that incentive you were thinking of giving the Realtor and just reduce your asking price or offer paying some closing costs, real estate taxes, etc. That will help you sell, nothing else.
As far as aggressively selling your home, seek a Realtor that knows the target market for today's buyers, understands the community and cares about your real estate needs.
If you have not done so already, please call me anytime, I am happy to assist.
Best of luck.
Jeffrey
1 vote
John Harris, Agent, Randolph, NJ
Tue Aug 3, 2010
Why not interview several agents and see how they respond? Each real estate market is different. Spend some time getting to know who you will be dealing with. Selling a home can take time, money is only one issue, location, condition, and agent and brokerage are all important. An incentive to the selling agent could be a good idea to make your home stand out, but is not the only reason a propety will sell. Do your homework as to commission rates, marketing ideas and internet exposure. Each one has value, then you can make a wise, well informed decision. Good luck!
1 vote
Alan May, Agent, Evanston, IL
Sat Feb 23, 2008
But with Elvis'' scenario where you pay 8% commission to buyers agent, he'd take 3.5% and give 4.5% back to the buyer? You might as well either spend the money for the above or just lower the price.
_____________________

My point exactly.. now you're talking about an incentive to the BUYER... the person who's actually going to buy your property. the person who deserves the incentive... BUYER's incentives work!
1 vote
Sylvia Barry,…, Agent, Marin, CA
Sat Feb 23, 2008
Commission incentive will not sell your house faster than others. This is not how we do business as Realtors and I will not be able to make a buyer who is not willing or ready to buy your house buy your house just because I am getting a mercede from you ;-D

You do want to find a Realtor who can help you get your house in tip-top condition to sell, whether it's painting, repair, upgrade, staging, landscaping, etc; does the best marketing (online, off line, tours, open house, pictures, virtual tours) things to get buyer agents and buyers into your house; and help you price your house correctly. You can also offer incentives to buyers such as credit back for closing costs and/or buy down on mortgage points,

But with Elvis'' scenario where you pay 8% commission to buyers agent, he'd take 3.5% and give 4.5% back to the buyer? You might as well either spend the money for the above or just lower the price.

Everything being equal, price sells everything - that's the bottom line.

Sylvia
1 vote
Gina Chirico, Agent, Fairfield, NJ
Sat Feb 23, 2008
I agree with Elvis...we provide lunch at our broker's open houses - feed them and they will come.....and they most certainly do!!

Gina
1 vote
Alan May, Agent, Evanston, IL
Sat Feb 23, 2008
I used that "Scenario" because I use that tactic. I give away 25.00 gas cards and the REALTORS come in droves.
________________

That's a different scenario... now you're talking about broker's tours... and you're right... for broker's tours we'll go out of our way for the simplest of incentives... dunkin' donuts, starbucks cards, gas cards... you betcha... I'll go see a house, that I might otherwise not have included in my personal tour.

But all that changes when you put a client in my car.
1 vote
Debbie Milley, , Sharon, MA
Sat Feb 23, 2008
People won't make their defining decision as to whether to buy a house because of a tiny price concession. While an agent might (and I repeat, might) be a bit more eager to show your home because of a commission incentive ... buyers most certainly won't be any more eager. My advice ... make the incentive directly to the buyer ... or better yet ... reduce your price by an additional .5%. – Debbie
1 vote
Alan May, Agent, Evanston, IL
Sat Feb 23, 2008
Gary's scenario is a lovely one... and if the house fits the client, and they're paying a higher co-op then I'll be delighted... but I still contend that the buyer's agent incentive will not get it shown more (at least by Marc or I), and it won't get it sold faster.

All it will do is cost the seller more commission. Now, there is a scenario under which it might work. If you're offering that 8% commission (something dramatically higher than normal)... I'm going to REBATE any commission above 3.5% back to my buyer (honestly, we're well paid for what we do... 3.5% is more than enough... ) So I'm going to rebate the additional 4.5% to my buyer, which now turns that buyer's agent incentive into something worthwhile... a BUYER'S incentive.

Those work!
1 vote
Janice Morze, , 08108
Sat Feb 23, 2008
I highly agree with Elvis and Marc. When I pull listings for potential buyers..I never even look at what the commission would be for me. It does not matter to me if it is 2-3 or 3.5 % commission. My goal is to find homes for my buyer that closely meet all their criteria. I also agree that you should use that amount to spruce up your house if you have not already done so. Or offer your potential buyers help with closing costs! Agressively pricing your home is the key to getting it sold quicker. Good luck to you!
1 vote
Gina Chirico, Agent, Fairfield, NJ
Fri Feb 22, 2008
Hi Jr.

I have to honestly say that I don't think offering your listing agent a bonus for aggressive marketing, etc. should even be a thought in your mind - that's part of their job of what you hired them to do. I aggressively market all of my listings, as does my office, regardless of what the commission split is. It's been said that buyer's agents compile their list of homes to show their buyers in order of which homes pay the highest commission. I'm not sure as to how much truth there is in that because again my office doesn't do that. Again, as far as offering your agent more money to do a better job - is ridiculous and any agent that tells you that they'll do a better job if you give them an incentive - should lose their license. My advice is to interview a few agents and see what they have to offer you as far as marketing, pricing, terms, etc. because all real estate agents are not alike. Feel free to contact me to discuss.

Gina Chirico, Sales Associate
PNJP-Caldwell
(973) 228- 1000 ext 132
GinaChirico@PruNewJersey.com
1 vote
Murray Plish…, , Parsippany, NJ
Fri Sep 17, 2010
Jr
I'd do 2 things.
One of course is to price the house aggresively for sale, after making sure it is clean, uncluttered, painted etc.
Number 2 is make sure the Buyers Broker gets a solid commission, like 3%
Too often I see 2% to buyers broker on the MLS. With the glut of houses on the market, why show a 2% listing? Most give 2.5% to the B.B. If you want maximum showings, up it to 3%!
Feel free to call for advise
Murph Plishtin
0 votes
Valerie Reyn…, , Morris County, NJ
Thu Mar 20, 2008
You can give out any commission you want to the buyer's agent but if you are overpriced- the buyer will not buy your home. Now, if you were offering 2% or less, as Foxtons sellers found out, buyer's agents will not show your listings. If you are priced right then yes, a buyer's agent will more than likely add your house to the list. I saw 3.5% listings in Rockaway and Mine Hill so the trend me starting in that direction.
0 votes
Barbara Ostr…, Agent, Closter, NJ
Wed Mar 12, 2008
Yes, in this marketplace, improving the commission paid out on the buyers' agent's side will get you more showings and a quicker offer. Bonuses are also effective in this market. Make sure your realtor pushes the improved commission and/or bonus information and notifies all agencies who work your neighborhood.
0 votes
Jeffrey Halp…, Agent, Hopatcong, NJ
Tue Mar 11, 2008
Incentives to the agent is not necessary. It is nice to get the money but remember, the buyer is finding your home on the interent and then locating a Realtor. They must show you the home no matter what the commission. I am not saying to pay less than 6% because there is a cost that agents incur as well as the time, but the incentives to not work. What works is the right pricing and marketing. Good Luck.
0 votes
Sylvia Barry,…, Agent, Marin, CA
Sun Feb 24, 2008
So, Jr, as you can see, how to successfully sell a product (in this case, your home) is pretty fundamental, we all have the same ideas.

The difference is the presentation, the skill level, the heart and the execution. That's why in all corporate America, you have successful salesperson and you also have not so successful ones.

Other than worrying about the commission and incentive structure, make sure you find one of the best and most hardworking Realtor for your property. Keep in mind, I did not say the 'biggest' Reatlor. "Best" and "Big" are quite different - You want somebody who has your best interest in mind.

Best,
Sylvia
0 votes
Alan May, Agent, Evanston, IL
Sun Feb 24, 2008
... and yes, just in case the "tongue-in-cheek" wasn't obvious (and it appears it wasnt')... but buyer's incentives... I believe the lower price is better...

... I don't believe in a 8% commish, with 4.5% going to the buyer... lower the price by that 4.5%, or use it to make needed repairs or upgrades... which is what I said in my FIRST post.
0 votes
Marc Paolella, Agent, Succasunna, NJ
Sun Feb 24, 2008
Of course, if I show a house with any kind of bonus, I disclose it to my clients before ANYTHING else. I believe it is unethical to show a "buyer agent bonus" house without complete disclosure before the showing.

I'm sure we all do that, right?

-Marc
Web Reference:  http://www.marcpaolella.com
0 votes
Gary De Pury, , Pasco County, FL
Sun Feb 24, 2008
All good answers. I use it and it does work. I track showing data and closed data.
I would like to point out that I don't think many of us are far off the mark or that apart in opinion.

In my first post I said that this will only put you over the top..not to the top. Everything else must be in line. That includes price.

In my second post I stated...."Price and access sell a house, AFTER you have those right, then an incentive is a good idea. "

I continue to see...Lower the price...or ...price it right.

I assumed that we were talking about a house that was correctly priced. Since the question stated "I am considering selling my house, and would like a fast sale for a variety of reasons. Assuming that the property is priced appropriately… "

Here is the thing...again, only my opinion... I have worked in Corporate America, as a Contractor, spent 20+ years in the Army Intelligence Community, I have owned several businesses and sold a ton of Real Estate.

I have used various forms of incentives in all of those fields. Some more than others and I can tell you right now, the builders who offer these 5,000 bonuses get all kinds of REALTOR traffic. And sales. There is a community in Tampa that fell behind. The builder is a retired inventor and product developer. He is worth Millions. When the sales slipped, he started paying 4% with a 5K bonus. He didn't lower the prices because he still had about 100 units to sell. He set records for three months straight and then discontinued the program after he was back on track. (He is now sold out)

Again...if the price is right, the house is in shape....ONCE those two things are done, as the questioner stated in the question. If you want to sell a 200K condo in a 150K community, True, a 10K REALTOR BONUS AND CRUISE are not going to help. But if you are trying to COMPETE, then this will give you an edge. REALTORS are part of corporate America and feeding kids too.

My last argument. Most firms have a policy in place that addresses bonuses and incentives between the firm and the agent. If the didn't work, then they wouldn't exist. If they didn't exist, we wouldn't have the policies.

Thanks
Gary De Pury
Broker-Owner
Bay Vista Realty & Investments, Inc.
Chairman, Communications Committee
Director, Florida Association of REALTORS®
0 votes
Kathy Carter, , Bergen County, NJ
Sun Feb 24, 2008
I think it's probably better to just lower your price a bit. I'd price it 1% UNDER market value along with the other suggestions made here - most notably staging and increased exposure.

Good luck.
Web Reference:  http://www.Kathy-Carter.com
0 votes
J R, , New York, NY
Sun Feb 24, 2008
IMO the incentive should be to the BUYER in the form of a lower price. As a selling agent, the amount I earn doesn't matter to the buyer, and I have not developed any magic powers that can make a buyer want a particular house.

That said, here's an incentive I can live with. Offer 3% to the selling agent and 3 % to your listing agent. If you think a bonus will make an agent work harder, offer your LISTING agent a bonus if they find a buyer in the first month. Your listing agent is the person who is doing all the marketing of your house. They find obscure publications and website where a buyer for your home might look, they get the word out to the other agents that your house is a great buy....give them an incentive to work hard and give the buyer an incentive to buy in the form of price.
0 votes
Tman, , 30642
Sun Feb 24, 2008
Jr,

1.) do any updates and minor upgrades.

2.) have a stager come in.

3.) add a home warranty.

4.) lower the price to actual market value.


- or, offer a $5,000 cash bonus like my friend did and have it sit for another 10 weeks .... do as above, and you'll have sold and closed by Easter.

-
0 votes
Susan, Home Buyer, San Francisco, CA
Sun Feb 24, 2008
just lower the price of your house.
0 votes
Sylvia Barry,…, Agent, Marin, CA
Sat Feb 23, 2008
O.K. If you put it that way, Gary!
0 votes
Gary De Pury, , Pasco County, FL
Sat Feb 23, 2008
OK, Ok my statistics are all wrong. Those houses with a BUYERS AGENT incentive are all due to new annuals in the flowerbed and dangly pine scent rear view mirror things that say Bay Vista.

I know that it won't work now, but I am not going to be the one who calls my agents and tells them to stop doing it.

Can we all agree that you must pay at a minimum a decent wage or your house is just not likely to show? If you were to offer $20.00 to a coop-broker, is the house going to show???

Thanks
Gary De Pury
Broker-Owner
Bay Vista Realty & Investments, Inc.
Chairman, Communications Committee
Director, Florida Association of REALTORS®
0 votes
Sylvia Barry,…, Agent, Marin, CA
Sat Feb 23, 2008
I understand that the net effect is a buyer's incentive.

However, if the listing price is lower, you will have more buyers who will notice the relative lower price of the house, and you attract more buyers to come and see the house.

If the listing price stays high, except for a note saying that the buyer will get a disoucnt of 4.5% if they close before a certain time, some people might just skip the listing becaue the price is not considered a bargain. They might notice this after they read the note about the buyer incentive but it will certainly not be intuitive.

Listing price is what stands out not the note about an incentive - at least in our MLS.

That's why I personally will opt for lowering listing price than given buyer incentive.

Sylvia
0 votes
Gary De Pury, , Pasco County, FL
Sat Feb 23, 2008
Allow me to rephrase, I use the tactic of paying 3.5% or 4% on occasion and I get 8% more showings on those houses. If I have a house where everything else in order, then I add a bump to the buyers side and get more traffic and more closed.

The Gas cards example was just an example of how inexpensively I can drive up traffic. Bring a qualified buyer and walk away with $25.00. I don't care if they buy, just a real client that you are working with. I figure that I can't sell what no-one knows about.

When I have a parcel buried in the back of a sub-division or a few miles away, then I pay more money. It works and they sell.

Thanks
Gary De Pury
Broker-Owner
Bay Vista Realty & Investments, Inc.
Chairman, Communications Committee
Director, Florida Association of REALTORS®
0 votes
Cath, , Southwest Employment Area, Washington, DC
Sat Feb 23, 2008
I would -- and recently did -- offer a bonus point (additional 1% commission) to the selling agent (not the listing agent). In a saturated market like the one I was selling in you need to have a well-priced property in top shape -- but even with those the competition can be fierce. The selling-agent bonus will help to make sure the property gets seen and it can help an agent move a sale along when buyers have little other motivation to act quickly. Bottom line in my case is that my condo was gone in 45 days in a market where listing times are running 4 to 6 months and more.
0 votes
Tman, , 30642
Sat Feb 23, 2008
How's that go again, everyone has a price...?

I've seen a lot of different incentives tried, most fail .. last Thanksgiving a friend offered $5,000 to any agent that brought a pre-approved buyer that could close before January 31st - 9 showings in 6 weeks - not one offer and it's still for sale ...

$5,000 could have painted those pink walls in the upstairs bathrooms .. $5,000 could have removed the giant rose wallpaper in the downstairs 20 x15 master bath - and the same $5,000 would have polished and repaired the downstairs wood floors that the dog has been using as a test track, and the balance could have been used for some landscaping upgrades.

The hand buys what the eye see's ... when the eye can't see anything, the hand waves bye bye ....


-
0 votes
Gary De Pury, , Pasco County, FL
Sat Feb 23, 2008
I used that "Scenario" because I use that tactic. I give away 25.00 gas cards and the REALTORS come in droves. It works. I also will not show a house without a Lockbox. I am busy, my clients are busy and I am not picking up a key at your house after you get back from soccer practice. I just don't have time....Price and access sell a house, AFTER you have those right, then an incentive is a good idea.


Gary De Pury
Broker-Owner
Bay Vista Realty & Investments, Inc.
Tampa, Florida
Chairman, Communications Committee
Director, Florida Association of REALTORS®
0 votes
Don Tepper, Agent, Burke, VA
Sat Feb 23, 2008
Hmmm. I agree with Gary and don't fully agree with some of the other advice here from agents who consistently give excellent advice. His scenario is on target. Assuming there are more properties available than a buyer can reasonably look at--properties that fit the buyer's criteria--then there has to be some way for the agent to say, "Let's take a look at these 10 houses. They all have 4 bedrooms and 3 baths. They all have garages. They're all in the "X" school district, and they're all under $500,000." Now, maybe the agent is selecting those 10 based on some other unspecified criteria. Maybe they're all geographically bunched along a couple of streets. Maybe they're the 10 cheapest properties...or, for sake of the commission, the 10 most expensive ones under the buyer's $500,000 ceiling. There could be a lot of reasons. And maybe, just maybe, there's some sort of bonus attached to some of those properties for the agent.

I think what we're overlooking is that agents have to be as creative and broad-based in marketing properties as possible. Pricing a property properly is key, of course. Always has been. But raw price is not the only factor. Take two identical houses, side by side. One doesn't show well and is priced at $350,000. The other is clean, bright, and staged. It's priced at $360,000. It almost seems that sometimes we forget what the buyers want. Price, of course. But they want a house they can imagine as their own; one they want to live in. And that's an element of marketing a home.

Which brings me to staging. I'm all in favor of it; it's an essential part of marketing. But I'm amused that, at least around Northern Virginia, a couple of years ago most agents poo-pooed staging.Yes, the market was hotter then, but even then properties could have benefited from it. Now it's being treated as a big discovery by some. No. My point is: Marketing a property takes a lot of creativity and effort on many fronts. Staging, like price, like incentivizing buyer's agents, is important.

Now everyone's discovered the Internet. One comment below states: "Most buyers are finding their own homes on the Internet." Many are. But not all. Some still receive mail, look at postcards, open letters. Some still drive around neighborhoods they like looking for signs. Some still actually walk into a real estate office. Some talk to neighbors or co-workers. The Internet is not the be all-end all solution. It's a marketing tool. Just like staging. Just like pricing.

People still go grocery shopping. Around where I live, an agent advertises on shopping carts. Others advertise on the back of the tape receipts.

Now, a lot of this--shopping cart advertising, for instance, is generic. It doesn't have to be.

The point is: Even when marketing a specific property, there are dozens of different ways to do it, all of which have, in the past and present, proved to be effective. Those who put most of their eggs into one basket--whether it's price, or the Internet, or whatever--are going to be missing some techniques that have worked and are working.

So, as far as offering an incentive to an agent, especially to a buyer's agent, it may be worth a try. The fact that resources are always limited may mean skipping over some techniques that may be less productive. And it does mean, as Elvis suggests, that the money might be better spent elsewhere. But you've got to take a look at the complete picture, the complete situation.

Hope that helps.
0 votes
Marc Paolella, Agent, Succasunna, NJ
Sat Feb 23, 2008
I think bonus schemes are an example of FPS - Fancy Play Syndrome. Keep it simple. Price represents a bargain, stage properly, aggressive selling agent who knows how to make the best presentation, and away we go.

If agents picked houses to show, bonuses might work. Foxtons survived for as long as they did because the customers were, and are, picking their own homes on the Internet. Even with the horrible co-broke they offered, their stuff did get shown and did sell. If they didn't make 10000 other mistakes, they'd still be here.
Web Reference:  http://www.marcpaolella.com
0 votes
Paul Renton &…, , Atlanta, GA
Sat Feb 23, 2008
Jr,

just as atrracting a high value in Real estate is location,location, location. Then selling your home is price,price,price.

Incentives are great but price is king and overcomes all objections period. I have had more success with pricing correctly than I have had with agent incentives.

Make sure you co-op offer is a min 3%. Incentives have a bottom line. Stay in touch with thelatest sales in your micro market and stay in the more for the same , same for less catergory and you will receive showings and offers. In GA the 80/20 rule applies with only 20% selling you need to be in that 20% the reason Price.
Web Reference:  http://www.TeamRenton.com
0 votes
Kimberly "KI…, Agent, Little Egg Harbor, NJ
Fri Feb 22, 2008
To be sure you understand my answer and I understand your qwuestion, YOur question was givign a bonus to the selling agency, correct? If so, it would not hurt to give the selling agency insentive to show and sell your home.
0 votes
Kimberly "KI…, Agent, Little Egg Harbor, NJ
Fri Feb 22, 2008
Hello Jr.

There are many factors that will help sell your home in todays market, as you are probably already aware, such as location, curb appeal, easy access for prospective buyers and staging are all very important. Pricing then, is the key factor after you and your agent compare your home to competitve homes on the market along with homes recently sold. Once you price your home competively, a commission incentive to the selling agency is often used in a market as we are in today to stir as much acitivity as possible. So doing all of the above and adding incentives for the selling agency, does not hurt your position in todays market. So in my opinion, use it. Good luck with your sale.
0 votes
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