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I find generally in life many things work out to be a classic bell curve. Meaning that most things are grouped around an average. If you ask your Realtor what the most commonly offered co-broke commission is and your either at that level or above it already then there's no reason you should not be getting enough showings to sell your home except for price. If that's the case, then I would suggest putting your efforts into a price reduction. As others have said, $10K isn't really enough to make a difference. $15K would be a better amount and $25K would be best as buyers tend to run MLS searches in increments of $25K. So, reducing your price by $25K should put you in front of a new group of buyers.
Loved the response above.......don't offfer $10,000; up the commish by 1 more percent. That will get the realtors motivated.
Uh Huh......1% of 400,000, or $10,000? I'll take the 1%, thank you! Yikes.
No wonder when i offered a (Substantial) brokers incentive to sell a property it did not generate any additional traffic, and certainly did not generate a buyer. Here i was thinking it was the buyers who were just indifferent. Now i know it was because the realtors couldn't figure out that they were more than doubling their 3% commish if they sold the house.
You learn something new every day.
Seriously, i don't think the incentive motivates the brokers. Drop the price and get it over with. That seems to be the new 'normal' on how to sell a house.
One thing not mentioned - Possibly do 10k in upgrades or staging - if one has the liquid to do this it may move the home into a higher market instead of lowering to a lesser one.
Loved the response above.......don't offfer $10,000; up the commish by 1 more percent. That will get the realtors motivated.
Uh Huh......1% of 400,000, or $10,000? I'll take the 1%, thank you! Yikes.
No wonder when i offered a (Substantial) brokers incentive to sell a property it did not generate any additional traffic, and certainly did not generate a buyer. Here i was thinking it was the buyers who were just indifferent. Now i know it was because the realtors couldn't figure out that they were more than doubling their 3% commish if they sold the house.
You learn something new every day.
Seriously, i don't think the incentive motivates the brokers. Drop the price and get it over with. That seems to be the new 'normal' on how to sell a house.
The problem with upping the co-broke commission is that it's not the real estate agent who makes the decision on whether or not to buy the house. The buyers are the people who need to be motivated by dropping the price. Of course, it's only going to help things to have their agent on board with the idea as well by offering them a reasonable commission.
The problem with upping the co-broke commission is that it's not the real estate agent who makes the decision on whether or not to buy the house. The buyers are the people who need to be motivated by dropping the price. Of course, it's only going to help things to have their agent on board with the idea as well by offering them a reasonable commission.
As a buyers agent we don't sell houses. People forget that it's the house that directly sells itself. An agent may show a house but if it's overpriced, in poor condition, bad location or whatever it's ultimately the buyer who decides.
I always tell my buyers I don't "Sell" them houses, I'm there to help them buy the absolute best home for their money. If a house is not the absolute best for their money we move on to the house that is.
As a buyers agent we don't sell houses. People forget that it's the house that directly sells itself. An agent may show a house but if it's overpriced, in poor condition, bad location or whatever it's ultimately the buyer who decides.
I always tell my buyers I don't "Sell" them houses, I'm there to help them buy the absolute best home for their money. If a house is not the absolute best for their money we move on to the house that is.
That's exactly how it should be done. I wish all real estate agents shared your sentiments.
Why would you want to offer any realtor incentives. In fact you should start dropping the realtor commissions as well as the price. I am sure a lot of realtors are looking for work and wouldn't mind working on 2% instead of 3%. Same goes for buyer agent's commission (drop it to 2%).
What's the thoughts on hypothetically
Home being listed drop home by 10,000 or offer a 10,000 realtor incentive (ontop of the normal 3 percent to buyers agents?)
Curious on your opinion which works better?
400+ price range.
Thanks for your thoughts!
The realtor is not buying the house. The realtor does not sell your home. They get paid to pre-qualify potential buyers and help with the negotiations. The house has to sell itself.
Why would you want to offer any realtor incentives. In fact you should start dropping the realtor commissions as well as the price. I am sure a lot of realtors are looking for work and wouldn't mind working on 2% instead of 3%. Same goes for buyer agent's commission (drop it to 2%).
Here's what worked for me..... I couldn't drop my price another $20K plus since I was already $30K below what I owed so I had to be creative. (This was on a $350K house that had been $500K in 2007) We had a broker open house and got feedback from the other realtors. Most of the stuff we could do ourselves (i.e. painting wood trim white, staging living room better, brightening up front entry, etc.) We also offered a $5,000 bonus to the buyers broker on top of the 6% split. We figured that we couldn't drop the price enough to motivate anyone to come look - but we could find a way to squeeze $5K out of our savings if it meant we sold the house and didn't have to make mortgage payments for a few more months while waiting for offers. We put in a lot of elbow grease and really made every inch as perfect as possible. Every closet was perfectly organized.....no clutter.....etc. We had some nice furnishings that buyers seemed to admire, so we offered them with the house since we were moving across country and it would end up costing a fortune to move those pieces. I really believe the buyers broker bonus helped - because there was a flood of agents coming once we advertised that and I believe they really tried to "sell" the house because they wanted that incentive. We ended up with three offers and were able to play them off each other - getting our full asking price.
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I wish all real estate agents shared your sentiments.
