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Asked by Jackstraw, New Jersey Thu Jun 11, 2009

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Answers

11
Bill Eckler, Agent, Venice, FL
Thu Jun 11, 2009
Jack,

Since agents can only collect fees through the broker, this is left strictly to the brokers disgression. With this said however, most want a percentage of the bonus.
0 votes
Jeanne Feeni…, Agent, Warren, NJ
Thu Jun 11, 2009
Hi Jackstraw, the answer to your question is "yes", agents can only be paid through their broker, so the bonus will flow through as compensation just as the commission payment does, and be subject to whatever negotiated split that agent has with his/her broker.

As commissioned sales people, agents will enjoy the offer of a bonus, and will be pleased by above average commission payouts. You are likely considering offering out this bonus to cause your listing to "pop" and stir up interest. The real party you want to motivate and reward is the buyer - my suggestion is to adjust your price downward rather than offer out the agent bonus.

With that said, I do caution you from paying out less than what is customary - you want nothing that will negatively distract agents from showing your home. Pay out a fair commission, make your home easy to access, a pleasure to show, and price it right.

Good luck Jackstraw. Focus on the buyer - Price cures everything.

Best,
Jeannie Feenick
"Unwavering Commitment to Service"
Search and connect at http://www.feenick.com
Web Reference:  http://www.feenick.com
0 votes
Jeffrey Halp…, Agent, Hopatcong, NJ
Thu Jun 11, 2009
I agree with the last answer to the utmost. As agents, we have the legal and moral obligation to introduce all properties that fit within the client's parameters. To incentify the agent actually does nothing but brings a disservice to the buyer as well as the seller (who may be missing the buyer who is out there looking strictly on the internet without seeing the incentive.) The role of a Realtor has changed such that the information out there is there for everyone to see. It also must be disclosed to the buyer that there is an added bonus to the agent if there is a sale. That tells the buyer that they may be dealing with a selfish agent for not shoping them other homes and in the long-run may disuade the buyer from continuing the transaction.
As stated before, the only way to sell your home is to market it correctly which includes price. If you incentify anyone it is the buyer. Pay their real estate taxes for a year, buy them a big screen tv, if it is a condo, pay their maintenance fees for 6 months. Or just price it right - even under right. (It is better to have a bidding war than no offers at all) But whatever it is, make sure it is highlighted in your marketing.
Goos luck!!!
0 votes
William Leigh…, , New Jersey
Thu Jun 11, 2009
Jackstraw: All my colleagues have told you the same thing, more or less. The entire amount paid in any transaction goes to the seller's agency. They usually have, in a contract with the seller, agreed to split the commission with the buyer's agency. All funds, except reimbursement for out of pocket costs that the individual agent can present (such as paying the Home Inspector on the spot) are put into checks made payable to the agencies involved. No checks for general disbursement are made to the agent. Therefore, the agency completely controls where the money goes. Most agencies take the total amount and split it as per the agreement that they have with the agent. Some will allow a pass though of the bonus but, as I understand it, this is not the usual case.

As my colleagues have told you any agent has good enough motivation to show listed properties that carry a full commission and that, therefore, adding to the pot does little good. Finally, unless the agent can practice some form of mind control, the buyer makes his own decision. If it were not so, wouldn't the agent only show one house, that where his revenue was the highest, call it a day and have his buyer sign on the dotted line?

My own opinion is that what you should do is price the house appropriately and if you feel that there is some money left over for promotion, either add it to a closing cost bonus to the buyer or do some improvement that will be eye catching, since the average buyer makes a decision in fewer than twenty minutes. (Although they may well spend more time thinking about it after leaving the first showing.) They rarely come back a second time without being very interested in the place.
0 votes
Laura Gianno…, Agent, Manahawkin, NJ
Thu Jun 11, 2009
I have to agree with others that recommended the bonus be given to the buyer in the form of closing cost assistance.

Laura Giannotta
Keller Williams Atlantic Shore
0 votes
John Sacktig, Agent, New Jersey, NJ
Thu Jun 11, 2009
Yes, the Broker is entitiled to the split that is agreed upon betwewen the Broker and Agent.

For get about the bonus to the selling agent, it does you no good. If the agent has someone in a buyers price range they will bring them regardless.

You would be better off telling the homeowner to reduce the price further or offer the $ towards closing costs.
0 votes
Laureen Coup, Agent, Long Beach Island, NJ
Thu Jun 11, 2009
the broker has the final decision whether to let the agent have the full bonus.
0 votes
David Friedm…, Agent, Phoenix, AZ
Thu Jun 11, 2009
If I may, I am of the belief that a bonus to a buyer's agent will not be as effective as a similar incentive to the actual buyer. Put the bonus in the public remarks.

Just my .02.
0 votes
Kenneth Verb…, Agent, PRINCETON, NJ
Thu Jun 11, 2009
I should have mentioned all payments go thru the broker. (even offers such as TV or gift certificates...)
0 votes
Jeffrey Hall…, , Point Pleasant Beach, NJ
Thu Jun 11, 2009
It depends on the Broker. Most times the Broker let's the agents keep the full bonus, and I have heard of others that take a split.
0 votes
Kenneth Verb…, Agent, PRINCETON, NJ
Thu Jun 11, 2009
that is up to the employing broker, most times yes
0 votes
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