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how does it work when you offer the agent a bonus if he sales the house in, say, 60 days.
here's an offer i want to make to my agent...
reduce rate from 6% to 4.5% and i'll retain you for the purchase of my new home (which he'll get 2.5% or more for, right). if you sale home in 60 days, i'll give you a $1000 cash bonus.
question 1: does that $1000 cash bonus go str8 into his pocket or does he have to split that with his firm (i'd rather it go str8 into his pocket...gives him more incentive to sale my home)
question 2: does he split the 2.5% (that he gets for aiding in the purchase of my new home) with his company?
question 3: does this sound like a good offer? how can i make the offer sweeter
In the agency agreement there is room for you to add other clauses. So in there you would pencil in if home sells in 60 days or less I will give you a $X bonus.
Typically the bonus goes straight to the agent without paying the company. Any other commission gets split with his firm So the 1.5% would be split as well as the % he gets for helping you buy a home.
Just do a 6% plus a $1000 cash bonus to selling agent . . .
Real estate agents do not make 1/2 of whatever the commission ends up being. Here is scenario. Let's say commission works out to be $18,000. Half to each agency.
$9000 to Agency A
$9000 to Agency B
Then the agency divides that commission. Maybe they divide it 60% to agent and 40% in house. So that means the agent actually made $5400, not $9000.
When you start figuring that out using a lower % for commission, it starts looking like a pretty lean commission.
Don't skimp on commission, especially in a market where there is so much competition! Put a bonus on for agent who brings in a contract w/in xx days, and I would make it more like 2 weeks or 30 days, tops.
I have used this strategy successfully to sell my own properties and have also suggested it to friends who have used it successfully to sell their own properties.
Your house is costing you a mortgage payment every month that you do not unload it. Put a bonus on it, get it over with quickly and in the end, you have saved money as opposed to dragging this out for six months.
6% plus a $1000 bonus....
i'm losing more money that way
Not if your house sells quickly. You gotta look at it statistically. Houses are selling slowly - and some are staying on the market for a very long time. How much are you gonna lose if it takes six months to sell your house - as opposed to 30 days?
Realtors are not in the charity business. They want to make money. This is a lean market. If a realtor has a qualified buyer ready to buy a home in your price range - and all things being equal (i.e. sq. footage, age of home, amenities, condition of home, location, etc) . . . the realtor is going to have an incentive to at least SHOW those buyers your house. It is a numbers game. You gotta price your house as low as possible and put as big a commission on it as possible in this market.
Hey - no one else seems to be listening to me on this either, Hee Hee. So I don't have my feelings hurt that you think this is a losing proposition.
It is a strategy to better position you to sell your house - rather than the neighbor selling his.
"You gotta price your house as low as possible and put as big a commission on it as possible in this market"
yeah, anifani, that's crazy talk right there.
i'd keep my home before i list it "as low as possible and offer a big commission"
i don't "need" to sell it, we just "want" to.
Then that is a different scenario. If you don't really need to sell your home, why bother in this dismal market, LOL.
However, I do understand if you have seen property you want to buy. I have thought the same thing . . . have seen some properties that I would love to grab up b/c the price is low and they represent a really good value.
If you don't really need to sell your house . . . just do a FSBO and see what happens and save all the commission, LOL.
Not if your house sells quickly. You gotta look at it statistically. Houses are selling slowly - and some are staying on the market for a very long time. How much are you gonna lose if it takes six months to sell your house - as opposed to 30 days?
Realtors are not in the charity business. They want to make money. This is a lean market. If a realtor has a qualified buyer ready to buy a home in your price range - and all things being equal (i.e. sq. footage, age of home, amenities, condition of home, location, etc) . . . the realtor is going to have an incentive to at least SHOW those buyers your house. It is a numbers game. You gotta price your house as low as possible and put as big a commission on it as possible in this market.
Hey - no one else seems to be listening to me on this either, Hee Hee. So I don't have my feelings hurt that you think this is a losing proposition.
It is a strategy to better position you to sell your house - rather than the neighbor selling his.
Is it legal for a realtor to not show a house because the commission is too low?
i've owned for 2 years. closed on it may of 2006.
not much equity in it. plus i combined my 80/20 loan a couple months ago @ my credit union...into a 2 yr arm @ 4.75%
wasn't really looking to move anytime soon, but heard about the Shea Homes deal and didn't want to pass it up.
I just want to break even. Making a profit isn't a concern...just want to break even
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