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Not everyone is motivated by money. I want to do a good job to get referrals from other brokers and past clients.
I sold a FSBO in May for $1250- the Seller agreed verbally to pay most of my fee and the buyer agreed to pay a small part.
I sent over both contracts at the same time, purchase agreement & fee agreement. Seller only signed the purchase agreement, on purpose. 100% my error.
I still did everything I was suppose to do, professionally and without complaint, like I was paid 10x as much.
Once I recommended a furnace guy to clean and service a furnace, he had done a great job on the last house. Instead he took advantage of the old lady sister owners and charged them $400 for a $125 job. At Closing, I gave them $400 for referring them the wrong person.
I need to do the right thing more than I need to take someone's money. It's called integrity.
Huge lack of understanding here. See my response to Bo as you have the same misunderstanding.
No, the problem seems to be that you feel that a meaningless increase will motivate a Buyer's agent to push for a higher price. If it's not enough to elicit a change in behavior, it's not really an "incentive".
You seem to be hung up on Buyer's agent's commissions, while that is probably the least of the problems in the real estate industry.
almost every definition I find for incentive includes something like this:
something that incites or tends to incite to action or greater effort, as a reward offered for increased productivity.
we make around 3% whether it's a $1 house or a $1MM house. that's the $1 or $1MM figure. sorry if not putting "house" in the first sentence confused you.
by your silence, I suppose that's acknowledgement I've clarified collusion vs cooperation for you.
And a salesperson w/quotas very well does NOT bust their ass to exceed quota if they're paid at the same rate, because next year's quota is always increased toward's this year's production. They'll just book those extra sales the next year, towards next year's quota, and the same rate.
Yeah incentives are rewards for increased productivity. Productivity in RE are sales numbers - i.e. what you sold. You're paid by what you sell. you're incentivized to sell. You don't have to sell. You might sell $0 but that doesn't mean that you aren't incentivized to sell. That's how your remuneration structure is designed - to reward you for selling. You earn more when you sell more. Simple as that.
So people have cut apart my character because they didn't know what is meant by "incentivized to...", assuming I meant that they (and I) would always try to coerce clients to pay more for a house to earn more commission. that's pretty funny. I said no such thing and it's poor comprehension on your part and others for jumping all the way from how you are incentivized to shafting people.
Inducement or supplemental reward that serves as a motivational device for a desired action or behavior.
Read more: What is incentive? definition and meaning - BusinessDictionary.com
Quotas are irrelevant to this discussion. There is enough confusion on the basics of language without making it unnecessarily more complicated. But for what it's worth, i tend to agree with you, however other incentives besides % accelerator may be in place to keep people pumping beyond their quota. Anyway, that's off track. Perhaps a discussion on the nuances of incentive design is a ways off when it's not even understood what an incentive is. Sorry if this sounds snarky but it's really shocking...
No, i'm clear on collusion vs cooperation, thank you. Frankly after this debacle with understanding what an incentive means, I would look to others if I need clarification of simple terms. but I do appreciate the offer.
No, the problem seems to be that you feel that a meaningless increase will motivate a Buyer's agent to push for a higher price. If it's not enough to elicit a change in behavior, it's not really an "incentive".
You seem to be hung up on Buyer's agent's commissions, while that is probably the least of the problems in the real estate industry.
I don't know what increase in commission would explicitly motivate different buyer's agents to push for a higher price, nor does anyone. And we keep saying things like 'push for a higher price'. Maybe that incentive would influence some agents to work on more expensive homes for wealthier buyers rather than cheaper ones. Do you think? Incentives usually influence the behavior of some in different ways than others. Regardless of what they do for you or for me, they are incentives.
The misunderstanding is becoming clearer. If your employer offers you $100 to work on your vacation. Someone may say "that's not an incentive to give up my vacation!" Well your employer IS incentivizing you to work your vacation but it's just not a big enough incentive to personally motivate you to do it. Conversational/shorthand English vs proper business/economics terminology. The only mistake that I made is using terms properly with this crowd.
correcting "cooperation" vs "Collusion" came first. then you shifted to the importance of an incentive, and indeed included we were incented to get our Buyers to pay more.
when you figure out a single point you think you're in the right on, then by all means, let's discuss it a point at a time. And when you're right, I feel certain your combatants will agree with you more often than you concede your ignorance.
correcting "cooperation" vs "Collusion" came first. then you shifted to the importance of an incentive, and indeed included we were incented to get our Buyers to pay more.
when you figure out a single point you think you're in the right on, then by all means, let's discuss it a point at a time. And when you're right, I feel certain your combatants will agree with you more often than you concede your ignorance.
If only.
Gotta give props for a knack for comedy, though.
You are talking to Austin Willie. Remember him?
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