What do agents feel about a bonus?? (commission, listing, sellers)
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Right now it seems like about 50% of the houses in our area (Athens/Atlanta GA) have bonuses attached to them, and they still are not moving! The market is a little stagnant in some areas but not horrible. Proper pricing and great staging seem to be the best help for motivated sellers right now.
As to the second part of your question, I've seen them as low as $1000 and as high as $10,000 on average priced homes lately. Because a bonus has to be disclosed to all parties of the contract, you may want to consider raising the selling side of the commission instead if you do choose to offer an incentive!
"Because a bonus has to be disclosed to all parties of the contract, you may want to consider raising the selling side of the commission instead if you do choose to offer an incentive!"
I think that's good advice. I've never been involved with a sale with a bonus. They are not common in my market, but they do exist. I would feel uncomfortable telling my buyer that I'm getting an extra $$$ because they're buying 123 Easy Street. That would cause them to question my motives, so to prevent that, we'd have to work out a split. (Broker also gets a lot of agent's bonus)
In my market, bonus's don't have to be disclosed, but I do. It may get me to send the picture to my client for consideration, but it doesn't get me to go against the best interest of my client. there is a fine line there.
oh, and at my brokerage firm, the agent gets the whole bonus, no split with the broker. But an increased commission is still split at the same rate.
Selling bonuses out here in Socal don't generate that much more traffic. Personally reducing the price so the home is more attractive to the buyer works better.
I see bonus' offered all the time right now in our area, but I don't seek them out for my benefit. I'm with MissyM, I wouldn't want my client thinking I'm showing them that house because there's an extra bonus attached to the deal. If it fit the parameters of what my client was looking for I would show it. I'm just not going to be motivated because someone is waving a bunch of dollar signs my way, that is not why I got into the business. I find it tacky to seek them out for my own personal gain.
And it avoids the ethical dilemna for the Agent. I would think that any payment above 3 percoent should go to the buyer. After all you are a fiduciary are you not? Is it really better for you to get a 2% bonus...or for the buyer to get a 2% price reduction.
This industry has all the ethics of a piranha school.
the seller is offering a % amount, be it 2% or 5%, as long as it doesn't hinder the negotiations then it is the compensation offered, period. Or a bonus offered period. As long as I am willing to show the property, and as long as I am willing to present whatever offer my client deems acceptable, then it shouldn't matter.
The only thing I have a problem with is when the bonus is tied to a full price offer, as in $1k bonus to selling agent on full price offer. Sorry, listing agent, you just hindered the agents abillity to do their job, you aren't really offering them a bonus, you are inducing them to not take their clients best interest to heart, and when I see that I assume the bonus is bogus, because I can't guarantee a full price offer. and I already know the seller will give up $1k, cause they offered it to me.
But if it is a clean offer of commission and/or bonus, then I don't see why it is wrong to accept it.
3% is not sacred, not downwards and certainly not upwards.
And it avoids the ethical dilemna for the Agent. I would think that any payment above 3 percoent should go to the buyer. After all you are a fiduciary are you not? Is it really better for you to get a 2% bonus...or for the buyer to get a 2% price reduction.
This industry has all the ethics of a piranha school.
I am just going to elaborate a little more. If I am to understand this thinking, that the 2% bonus or additional commission should go to the buyer, then whay not the magical 3%? I mean, if they weren't paying it to you, they could just drop it off the price. but you have a right to make a living right? and you determined that % is what makes your business work right? and anything over that is just, well unethical? Because you like that number?
Again, I'm not saying that you "keep the price artificially inflated" to line your pockets, with an inducement to bring a full price offer. But I don't see anything wrong with sellers trying to raise their property above the clutter and get noticed. and if it works with a bonus or additional commission, so be it.
Shelly
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