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Commissions are a negotiable term and saying something is customary is what gives the general public miss information. In addition, Real Estate is local and depending on your market may be more or less may be acceptable to offer. However, get back to the questions of the consumer, do bonuses benfit the selling process? If a seller is happy with an individual agents representation then thay can pay whatever the feel comfortable with and it is no ones elses business but the seller and agent.
Commissions are a negotiable term and saying something is customary is what gives the general public miss information. In addition, Real Estate is local and depending on your market may be more or less may be acceptable to offer. However, get back to the questions of the consumer, do bonuses benfit the selling process? If a seller is happy with an individual agents representation then thay can pay whatever the feel comfortable with and it is no ones elses business but the seller and agent.
Seller and agent? You work for the seller when you represent a buyer? I thought subagency went out a while back.
But you really think it is OK as long as seller and agent agree? It is OK to hose the buyer if the agent and seller agree? Whewww...
Seller and agent? You work for the seller when you represent a buyer? I thought subagency went out a while back.
But you really think it is OK as long as seller and agent agree? It is OK to hose the buyer if the agent and seller agree? Whewww...
I generally don't continue to response to such post that judge other people based on their moral high ground, but I must since you continue to move away from the consumers originally question.
The question originally is coming from a seller asking if selling bonuses work. The commission question was brought up later, and yes I don't know where you are but in California the seller pays the commission and possibly a bonus IF THEY SO CHOOSE!
I think a good question posed and some interesting answers.
A bonus never made me work any harder to sell a property. I take pride in helping buyers find their dream property no matter what it is and working hard to just move as many properties as I can no matter which properties; the ones I'll make more money on or less money on.
I have usually felt a bit offended if a seller offered a bonus to get the job done "better". I know they mean well, but it doesn't work for me. I hope to do a good job for the seller and the buyer and my reputation of being a good agent and getting the job done is my bonus. I would rather get referrals over a bonus which I do. I like to stand on my own merits.
Olecapt: Lighten up. Methinks you protesteth too much. Geez, louise.
You know it is our great industry shortcoming. Our ethics are entwined with our abiility to make money.
This bonus issue goes along with dual agency...we love to keep a high ethical standard....unless it costs us.
Note by the way that the NC Buyers Agency Agreement specifically discloses and gains permission for an Agent to accept any bonus. Hmmm. Wonder why they did that as you all know it is OK anyway?
As Shelly points out we generally agree...but not on this issue. I would suggest the reason is that she has been associated with the RE business for a long time and has the old timers view. I have been in RE only 6 years and came from a long career in high tech industry. I suspect that background difference tends to explain why we see this if such a different light.
Hey I think you are ducking. Would you take 20% if the seller offered it?
Do you disclose your compensation to your client? I do.
If a seller came up to me after a contract was closed and said here is a gift card for $200 please go have dinner on us you were a big help...I would take it. If the seller came up and said here is $2000 for your help in this transaction...I not only would not take it I would call my lawyer to see if she could help me figure out what was going on.
My Wife by the way agrees with you Shelly. She claims I am goody two shoes and should knock off the nonsense and make some money.
I think the problen here is that we are paid by the seller. That is basically wrong. But given that we all accept that as a fact of life...we then say it makes no difference what we accept. Not true. Reasonable compensation is included in our standard "understanding" with our buyer. Unreasonable compensation is not.
I would take 20% if the seller is offering.
Do you show homes that are offering 1%?
They are new developments here that the builders are offering 12%, the same house never lived in is listed for $15,000 more by a private party offering 3%. Which one should I show my buyer, the one for $15,000 more because I am only getting 3%?
When showing homes you generally have a price, size and area your buyer are interested in.
Most buyers understand we are getting paid by the seller and just as long as you are not letting the commission/bonus affect which homes you show I see no problem at all with it.
What I am learning through reading all of this is:
The next time I use a real estate agent when I want to look for property to buy: I will tell them I want to see "everything" in my price range, area and to my pacific wants and needs i.e. waterfront etc. I will tell them to show me everything including For Sale by Owner and everything even if the commission is lower for them then they would like. I will have it in writing. If they can't or will not, then I will not use them and I will find someone who will.
For example: I would be highly upset if my Realtor did not show me a home because the seller was only offering 2 percent to the buyers agent.
What I am learning through reading all of this is:
The next time I use a real estate agent when I want to look for property to buy: I will tell them I want to see "everything" in my price range, area and to my pacific wants and needs i.e. waterfront etc. I will tell them to show me everything including For Sale by Owner and everything even if the commission is lower for them then they would like. I will have it in writing. If they can't or will not, then I will not use them and I will find someone who will.
For example: I would be highly upset if my Realtor did not show me a home because the seller was only offering 2 percent to the buyers agent.
I am sure an agent will have no problem doing that for you if you sign a buyer agency agreement which will guarantee they will get paid even if you buy a FSBO.
I am sure an agent will have no problem doing that for you if you sign a buyer agency agreement which will guarantee they will get paid even if you buy a FSBO.
I would have no problem signing that for a agent if we bought something FSBO. Actually we just sold a FSBO waterfront lot and we offered any buyers agent 3% but no agents showed their clients the lot. We sold it to someone who happened to drive by it and see the sign.
My problem as a buyer would be when you asked "which one would you show"? "The one offering 12% or the one offering 3%"? My answer to you would be both.
As far as bonuses for the agents go. I feel if the seller wants to give bonuses or incentives then by all means do that if you feel it would help sell your property.
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