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Rationalize all you want, but if there is a financial incentive for an agent to steer their client to one house over another, it is a conflict of interest, and it is a breach of fiduciary duty waiting to happen.
I'm not rationalizing. I want to know why you think there is a difference?
Ok, so the general concensus seems to be that most of you don't think offering an incentive to the buyer's agent is a good idea. As far as disclosure, I am sure it would be disclosed, for sure. As a buyer, I admit I would find this a little hinky.
However, I have heard more than once that many agents will not show a house if the terms are not lucrative for them. There are about 45 homes for sale in my area and price range, so I guess I was looking for a way to get noticed.
You've convinced me that some other incentive to the buyer is the way to go.
Ok, so the general concensus seems to be that most of you don't think offering an incentive to the buyer's agent is a good idea. As far as disclosure, I am sure it would be disclosed, for sure. As a buyer, I admit I would find this a little hinky.
However, I have heard more than once that many agents will not show a house if the terms are not lucrative for them. There are about 45 homes for sale in my area and price range, so I guess I was looking for a way to get noticed.
You've convinced me that some other incentive to the buyer is the way to go.
Good choice. It is about the cost to the Buyer, the Price.
It's hard to believe that it is legal. It is clearly unethical, and the fact that it is acceptable to agents on this board is, in fact, and indictment of the industry.
Not all of us Realtors buy into the buyer agent bonus. My buyer rep agreement states the commission % amount the the buyer agrees to pay me as a buyer agent. It also states that any excess commission goes to the buyer and any commission shortage is paid by the buyer.
Therefore, a Bonus might influence my buyer, but not me. A commission that comes up short might influence my buyer, but not me. By adopting this approach, I am able to remain completely commission agnostic, so that not even an unconsious or subliminal monetary motivation influence can affect me, and nobody can ever later claim that I directed someone toward or away from a certain property.
I think this should be required of all agent/buyer relationships. It is, in my opinion, the only way that is 100% "clean". We close on a deal next week where my buyer is receiving a 0.5% credit toward closing costs because the extra commission was offer.
But the extra commission did not influence their purchase decision whatsoever. They would have wanted that house anyway because it was the one that best fit their needs and was priced correctly.
Since that is the only quibble with my post, I am assuming that you accept my well-presented point, and your spurious "indictment" is withdrawn.
Hardly, on both points. As I said before (and since you haven't disputed it, I assume you are on board with it), there is no way to ethically justify a bonus. Your "well-presented points" notwithstanding, if the seller is trying to motivate the buyer, the motivation should be a reduction in the price, or some other benefit to the buyer. Not an incentive to the buyer's agent, who can then decide whether or not to pass it on to the buyer. The fact that agent bonuses are permitted in your industry is an indictment of the industry. Instead of trying to defend an indefensible practice, perhaps an effort to clean the industry up would further your cause.
I am offering a bonus on the condo I have for sale in Portland, but as a percentage of the sell price. I don't think this should upset a buyer, and I hope their agent would disclose this to them.
I am doing this because the condo market is bad; the condo is truly a "hidden find" (we wouldn't go see it when we were shopping for months and my realtor finally "forced" us to - we made an offer on the spot); and the realtor that is willing and able to bring that happy buyer in these conditions deserves a bonus in my opinion. If people only show when there are bonuses - eventually, there will no longer be a bonus, the buyers "standard commission" will just be raised. But this is special circumstances.
I am offering a bonus on the condo I have for sale in Portland, but as a percentage of the sell price. I don't think this should upset a buyer, and I hope their agent would disclose this to them.
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You "HOPE" an agent would disclose this to them?
If you are that naive to believe an agent would voluntarily disclose that, well, then pass me whatever you are smoking.....
Like the previous poster said, forget about the bonus and aggressively lower your price. The market will decide if you have it priced right.
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