Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Hi all. We are trying to sell our home as we are moving out of state due to job relocation. We have been less than thrilled with the number of showings on our property. We have a high end home in an area of modest means. We are thinking of putting a bounty of sorts out to area realtors. $20,000 if they bring us a buyer within 30 days. Do you think this is a resonable idea? I truly think that whoever buys our home will be relocated from outside of the area. So, I wonder if offering this incentive to the RE Agents will even make a difference. I would like to hear your opinion as professionals.
There is a seller here offering $40,000 on a high end home, and it has made no difference whatsoever.
Either we have a buyer or we don't. There are just not a lot of buyers out there. If you are in jumbo loan territory, then you are going to have an even harder time. They raised the limits for jumbo's but it is still tight.
There is a seller here offering $40,000 on a high end home, and it has made no difference whatsoever.
Either we have a buyer or we don't. There are just not a lot of buyers out there. If you are in jumbo loan territory, then you are going to have an even harder time. They raised the limits for jumbo's but it is still tight.
Thank you for the feedback. I feel that is probably the case. I truly think there is noone out there in our price range right now. Our realtor's words, "it is dead." Not what you want to hear when selling your home.
Thank you for the feedback. I feel that is probably the case. I truly think there is noone out there in our price range right now. Our realtor's words, "it is dead." Not what you want to hear when selling your home.
I'm always uncomfortable seeing agent-focused incentives like this. I believe a buyer has every right to wonder if he or she is being steered toward a particular listing because the agent is hoping to get a big pay-off. And I believe the buyer also has every right to ask, "why is that $20k being offered to my agent instead of taken off the price I'm paying?" since, in effect they will now be paying off that $20k over the next 30 years at 5+% interest.
Rather than offer the agents an incentive, why not offer a special incentive to the buyers with an acceptable offer in a certain period of time? Of course, if no one takes you up on that incentive then after that period of time you remove the incentive it will be even harder to sell the house.
Your best option is always to price aggressively. That's even more important when you're the highest priced home in the neighborhood.
I'm always uncomfortable seeing agent-focused incentives like this. I believe a buyer has every right to wonder if he or she is being steered toward a particular listing because the agent is hoping to get a big pay-off. And I believe the buyer also has every right to ask, "why is that $20k being offered to my agent instead of taken off the price I'm paying?" since, in effect they will now be paying off that $20k over the next 30 years at 5+% interest.
Rather than offer the agents an incentive, why not offer a special incentive to the buyers with an acceptable offer in a certain period of time? Of course, if no one takes you up on that incentive then after that period of time you remove the incentive it will be even harder to sell the house.
Your best option is always to price aggressively. That's even more important when you're the highest priced home in the neighborhood.
Good luck!
It is not meant for the buyer to see. It is sent out to the agents. FYI we are the lowest priced in our neighborhood. The home directly across the street, slightly smaller than ours, is $100,000 higher, and the one 3 houses up is almost $300,000 higher. I truly think where we are, in this price range, there are no buyers.
It is not meant for the buyer to see. It is sent out to the agents.
But if the buyer is my client, then it is misleading not to let them know that an incentive is being offered to me by the seller in the event that the buyer actually purchases that home. Consider the situation in reverse. If you are a buyer and certain sellers are out there offering YOUR agent more money to show their home, wouldn't you consider that a material fact and believe that you have a right to know? After all, the buyer's agent is legally obligated to put the buyer's best interest above their own. And, knowing that, wouldn't you wonder if you were then being pushed toward one listing over another when it may not be in your best interest? Also, wouldn't you want that money to come off the list price rather than going in the pocket of your agent -- who already signed a buyer brokerage agreement with you that specified in advance the amount of money they were to be paid for their services?
But it sounds as if you are probably right. There may simply be no buyers in your price range in your area at the moment. Here's hoping you find one sooner rather than later! Best of luck.
There is a buyer for every property, all the time. The only thing you can control is the price. If you are getting no offers, then you are still too high because no one wants to yet "insult" you with a low offer.
Thanks for the insight. It sounds as if you are a very ethical realtor. I did not mention, but we are planning on a price drop in conjunction with the bounty. My husband and I differ on what is the best route. I say a higher price drop, he says a lower price drop with an increased bounty. In this market, I do not think there is a magic formula. For us, I feel we will just have to wait for that one buyer.
There is a buyer for every property, all the time. The only thing you can control is the price. If you are getting no offers, then you are still too high because no one wants to yet "insult" you with a low offer.
Trust me, we would not be insulted. We are currently purchasing a home where we will be moving, and believe me we low balled. I have made sure our brochures state, "Present All Offers." We happen to live in the one upscale neighborhood in our zipcode. Most houses in this area sell for less than half of what our's is worth. Not every situation is necessarily a price issue. Geography and demographics can play a huge role.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
