spiffs for realtors (Springfield, Branson: credit, lender, real estate)

[klenn]

Question, hoping someone has an answer. I am trying to sell a house in SW Missouri through a realtor. So far no luck. Its a very nice smaller home and we would like to sell it asap. I have wanted to offer a spiff to the real estate AGENT that sells it. The entire spiff would go the that one person. I am being told I can't do that. I signed a contract with a 5% commission and I feel that the realtors are out there selling the homes where they will make more money. If I give it to the listing agent it could just sit there. Can I legally offer a $2000 spiff to an individual agent, plus they would get their share of the 5%. Help, no guesses please.

[CellarBelle]

Klenn - As a seller, you can offer a bonus to the agency that brings a buyer (that successfully closes on your home, of course). You cannot offer it to an individual agent. Each agency handles bonuses in-house differently, but they all get to the individual agent in part or whole depending on the arrangement the agent has with the firm.

I usually tell my sellers, though, that in this day and age, bonuses don't really sell a house. Years ago, when sellers did not have access to available homes on the market, an unscrupulous agent could "steer" buyers to only those homes with the better commissions (illegal and unethical, but still happened, thus contributing to the glowing reputation agents now enjoy... ugh). In today's world of real estate, if an agent attempts to do that, he/she won't be in the biz long because the clients can quickly find out what is on the market. I've never shown or not shown a house based on commission or bonuses. I show my clients what meets their criteria, because if I don't, someone else will.

Also, you will still be obligated to meet the commission you agreed to pay in your listing contract, regardless of any bonus you offer. While the listing agent/agency may not bring the buyer, they do incur significant expenses in advertising your home, paying MLS fees, paying for pictoral uploads, and other related expenses. So, they do expect to be compensated for their investment of time and money to get your home on the market. I think, from reading your email, you already understand that part of it. But I just want to clarify for anyone else that because you offer a bonus you do not negate your contractual obligation to pay the listing agency.

It is a very difficult time to sell right now, as I'm sure you are aware. I have great homes on the market right now that I can't give away. I know there are many hungry agents out there right now that are trying to feed their family, and they would be more than happy to sell anything right now. Some of my agent friends haven't had a sale since 2007. Yikes! No income, nothing, for 7 months. I do believe if there was a ready, willing and able buyer for your home, someone would be happy to sell it to them. There are more agents out there right now that would be happy to get a sale, any sale, than there are agents that would walk away from any potential income. It is a very tough time for agents right now, so I don't think the potential commission, or lack therof, is keeping agents away.

So, to sum up my wordiness (sorry!): my opinion is the commission is incentive enough in this market. Save your $2k for taxes, insurance, future closing costs, or a mini-vacation . Just hang on tight, it might be a long ride in this market...

[CellarBelle]

Oh! I should add - I was referring to Illinois Law on the bonus. If your agent is not giving you the information you need about bonuses, contact your local board of REALTORS, and ask them directly how to go about offering a bonus. Moderator cut: removed Okay, I'll step out now, and let someone else have the floor. Much luck to you klenn!

[KCRichard]

I am a realtor in Missouri. You can indeed offer a selling bonus to be paid to the agent that brings the buyer to your home. Instead,I would raise the commission on your home to 3% for the listing and selling sides(6% total) and work to price my home according to the current sold comps in the area.

[20yrsinBranson]

Originally Posted by klenn

Question, hoping someone has an answer. I am trying to sell a house in SW Missouri through a realtor. So far no luck. Its a very nice smaller home and we would like to sell it asap. I have wanted to offer a spiff to the real estate AGENT that sells it. The entire spiff would go the that one person. I am being told I can't do that. I signed a contract with a 5% commission and I feel that the realtors are out there selling the homes where they will make more money. If I give it to the listing agent it could just sit there. Can I legally offer a $2000 spiff to an individual agent, plus they would get their share of the 5%. Help, no guesses please.

I have seen numerous listings on the local MLS (Greater Springfield Board of Realtors), offering a $XXXX bonus to the selling agent. Now, whether or not they have to split that with their broker is up to their employment contract. But it is not an unusual thing around here.

As to whether or not it helps sell the property, I cannot say. There *are* laws against steering and agents are required to show ALL of the properties that are available that meet the buyers criteria (or at least tell them about the properties).

I feel your pain vis a vis selling a smaller property. I am in the same boat and I wish this market would turn around soon. *sigh*.

20yrsinBranson

[Northwoods Voyager]

'It' is changing folks!!! Buyers are strting to realize that if they want to buy a home/property, that now is the time. Prices are about as low as they can go. Sellers are out there wanting to buy their new home also, don't forget. Put it this way, if yoiu are a buyer, make your mind up what it is you are really needing/wanting and go for it. Talk to your banker, lender, whomever and find out for sure just what you can afford. Then contact an agent. Sit down with him/her go over the location that you need, what price range you are in, and what requirements that you have.

Doing it this way, you will have no trouble getting your new homw/property. Good luck to you. And klenn, talk with your agent about bonuses, etc.

[befigard]

Its a HORRID market out there... I have had my home on the market for over a year. Because of medical problems...I NEED TO MOVE ASAP.....there hasn't even been a looky lou at my place. I may end up just walking and letting it go to the county courthouse. If the meds don't work and I end up going back through chemo...I will end up loosing everything, because I will NOT put my son through the grief of me going through chemo again....not here...not without family to help me this time.

I am priced so far below market value its pitiful I will not even make enough to move on...I will have to sell my jewerly and BORROW the money to move on..but just to be out from a foreclosure...and the mark it would leave on my credit...it would be worth it.

Whats even more is peoples attitude about manufactured homes. I have a 3 bed/2 bath...with 1280 square foot of well thought out living space....on 1.1 acre of mature oaks.........with a small pond private well. NO RESTRICTIONS...as I live rural the taxes are so low that even I can afford them on my meeger disabilty pay...and I can't even get a serious looker let alone a buy...whats wrong with this picture...UGH!

[austin-steve]

I usually tell my sellers, though, that in this day and age, bonuses don't really sell a house.

I agree with this. It's better, if you want to offer incentives, to make it to the buyer by offering to help with closing costs or buying down points. I'd have your agent write that into the listing so buyers can see it online "seller will pay up to $2,000 in closing costs", for example.

Steve