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Legal question for the folks in real estate-is it possible to offer a neighbor or someone else a bonus if they help sell your house? For example, give out a community flyer that says "If your friend, etc. buys my home, I will give you a check for $1,000!"?
OR
can I call an agent that showed my house to their client and offer them a bonus if they sell it to them? I know it needs to be disclosed...
Just cuious, money is very motivating...
I am listed with a realtor and both he and the buyers agent still get their standard commission. Thanks for your help!
We had a so-called bounty of $10,000 that just expired. It made no difference whatsoever. In fact, I posted this in the RE Professionals forum and asked their opinions on the subject. Of those who responded most looked down on it and stated that we should just take that amount off of the asking price instead. Which is what we have done. The up shot is that even though they may make referrals to your home, only the buyer will make the decision. Just my 2 cents. Good luck to you in your sale.
In Oregon you can't pay a "referral fee" to anyone who does not hold a real estate license. Now, is the rule for real estate professionals - I don't know if there would be a loop hole that allowed a seller to do so. I'd check with your state Real Estate office first just to be sure. You may be getting your agent in trouble by doing that...(laws vary from state to state...)
Again, I'd like to make the point that while money is INDEED a motivator for almost all of us - very few (if any) real estate professionals are able to get a client to buy a home they don't want just so THEY (the agent) can make a few extra bucks. Perhaps with a few classes in hypnosis I could do it, but I wouldn't be in business very long anyway...because no one would EVER come back to me, would they?
Put any "bonus" or "bounty" against other incentives that directly impact the BUYER (lower the price, help with closing costs, allowance for updates to carpets or cabinets...). That's where it will do the most good.
It is my opinion that the complicating factor here is "listed with Realtor". If the property is listed, especially under an exclusive agency contract, the law is very clear that you can not pay a referral fee as the OP described. The key issues are first, intent. If a neighbor is actively attempting to sell your home for compensation, then that is real estate and illegal whether listed or not. Secondly, if the neighbor is in anyway involved in negotiation, even sharing the asking price with a prospective buyer, it becomes improper.
Lots of issues, but had the home never been listed, a referral might have had less chance of being illegal.
In Illinois, when you give anyone money in association with selling a home who's not a licensed realtor, it is against the Real Estate Licensing Act 2000. The fine for getting caught/reported is up to $25,000.
You cannot pay cash. But you could give a gift such as a gift card to a local restaurant, or some other item that might be a benefit. In Madison, we recently had a buyer offer one year of season Packer tickets!
Be creative and think out of the box - you can do it!
In Illinois, when you give anyone money in association with selling a home who's not a licensed realtor, it is against the Real Estate Licensing Act 2000. The fine for getting caught/reported is up to $25,000.
I realize that this is an old post, but I was wondering if it would be legal (in ILLINOIS) to offer a gift card instead, or a donation to a non-profit of the referring friend's choice.
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