do you think a free car with a house in lieu of paying real estate commissions would work?

Asked by Tracy, Richmond, VA Sun Mar 16, 2008

Help the community by answering this question:

+ web reference
Web reference:


Alan May, Agent, Evanston, IL
Sun Mar 16, 2008
Sorry.. it wouldn't work. The Realtor would have to share the care with the buyer's agent, and each Realtor would have to share part of that car with their agency.

... so, what.... I get the car on Monday 'till 4:00, and then you get the car Alternate Tuesdays, Then my manager gets the car on Wednesday and Sunday... and YOUR manager gets the car on Thursday and Friday morning.... Friday afternoons, we leave open for repairs and a carwash.

3 votes
Tman, , 30642
Mon Mar 17, 2008

There's many items and perks that are used instead of "direct" commissions ...

Yearly lease car payments can be paid .. golf trip destinations .. College tuitions paid quarterly .. furniture .. multiple airline tickets .. home theater systems .. even remodeling ..

The favorites seem to be golf equipment and golf trips ... of course, plain old cash.


1 vote
Keith Sorem, Agent, Glendale, CA
Sun Mar 16, 2008
NO. I do not your arrangements, however normally commissions are paid as follows"
1. Buying Office Broker, then buyer's Realtor
2. Listing office broker, then listing agent.

So unless you've got four's too complicated.
1 vote
RCWessel & A…, , 60525
Sun Mar 16, 2008
I have to agree with Elv!s on this one. In Illinois anyway, all compensation goes to the broker who distributes according to an independent contractor agreement. A car is bad enough - who wants to go on vacation with their broker!
1 vote
Richard Rawd…, Agent, Southampton, NY
Sun Mar 16, 2008
It really has to be some car ! Depends on the price of the house.If the car equals the amount of comission earned on the sale,then it would be up to the individual realtor to deceide.Personally,I want the comission,I already have a car.
1 vote
Kim Gassert, , 17042
Thu Apr 3, 2008
First of all, ignore the last answer. As a Real Estate professional, the media has done enough "damage" in scaring consumers over the current conditions of the market. We don't need the "professionals" that are in the business also sandblasting the subject! Each area differs in the affect of the industry. As for Pennsylvania, sales are steady, values are steady and NOW IS A GOOD TIME TO BUY!
0 votes
Wythe Shockl…, Agent, Richmond, VA
Wed Apr 2, 2008
What kind of car did you have in mind?
0 votes
J R, , New York, NY
Tue Mar 18, 2008
Only if I need a car, LOL. And i don't know how I'd split it with the listing agent.... on my last deal I made $4,500, so I guess it would have been a used car?
0 votes
Mohamed Mekh…, , Richmond, VA
Tue Mar 18, 2008
Yes, depends of your agent, and his company!
0 votes
Deborah Madey, Agent, Brick, NJ
Mon Mar 17, 2008
There are a few reasons why I would strongly urge cash compensation. One reason is the complications set forth in prior posts of trying to split a car. It's siimply not practical. When there is both a buyer agent and seller agent from different brokerages in a transaction, the compensation must be divided between 4 parties. The two brokerage companies and the two agents. An automobile, nor vacation, cannot be easily divided. The brokerage firms are responsible for issuing 1099s to the agents. The auto would have to be sold, and the cash would have to be divided.......or one party would keep the car and have to pay the other parties. For you, as a seller, anything that is time consuming and complicated is counterproductive to your goal. You want agents to be excited about selling and promoting your property. The best way to do that is to have a marketable product (clean, clutter free, priced well, and easily accessible) and a competitive compensation (commission.)

A non-cash perk as an add-on can sometimes function as an incentive, but generally is less effective than cash.

Most Relators are independent contractors who must pay their overhead bsuiness expenses plus be able to generate an income to pay thier mortgage, car, utility, food and other living expenses. There is a common misconception that Realors make a substantially greater income than the average Realtor does in reality.

When a salaried sales staff working for a corporation is offered a contest and a chance to win a car or vacation for high achievements, it is in addition to compensation, not in lieu of compensation. Non-cash perks become attractive as add-ons, not as substitutes.

I have seen sellers offer a free car to a buyer w/ the purchase of a home. I think this gives more exposure to the property, but does not generate a sale in and of itself. The more buyers who look, the better oppty for a sale.......But......buyers will still comparison shop your property to others and go for the best deal.

When offering a car to a buyer, consult w/ your attorney and tax advisor.

For Realtor compensation, stick with cash.
0 votes
Steve Sober, , Woodstock, VA
Mon Mar 17, 2008
Does the question relate to the seller offering a car to a buyer instead of a commission to a broker?

Have at it!
Web Reference:
0 votes
Marian Ochel…, , Mill Creek, WA
Mon Mar 17, 2008
Hi Tracy,
It is not uncommon to see builders offer a car or extra $ to the selling agent as a bonus, not in lieu of a commission. As the other agent before me has already pointed out, the commission is paid out to the listing and selling brokerage houses and then divided to the agents involved.
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more