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I don't quite understand why the agent for the buyer gets a bonus from the seller, on top of commission!
I've recently purchased a property and noticed that my realtor got a commission of over $1,000, and an additional bonus of $2,500!!
That $2,500 could have definitely helped me out with my closing costs.
I am the one who found the property I wanted on the internet, anyway!
I asked my realtor to show it to me, and to help me purchase the place.
Would it be fair to ask the realtor who's supposed to be helping me buy a property, to help out with closing costs if they have such a nice bonus!?!?
Did you miss a digit in your second sentence? I am thinking that you meant $10,000 not $1000. It would have been more beneficial to have your Realtor ask for the seller to pay for some of your closing costs as part of your offer. These type of things are what good Realtors will negotiate for when preparing an offer. Did your agent ask you whether or not you needed closing cost assistance when you were putting together your offer or suggest that this is something you could have asked the seller to assist in paying? As a matter of honesty, I do think your agent should have told you that by purchasing this specific property they would be earning an additional bonus.
Listings with such bonuses probably get shown more frequently than those without, for the obvious reasons. There is nothing however, that a buyer's agent can do to compel a buyer to buy one property versus another.
I always disclose such incentive during a showing and rebate it at closing.
Your agent is most likely not getting the full commision. It has to be split with the sponsoring broker.
If indeed the commission was only $1000, either this is a very low priced property or the commission was sub standard to begin with. If the latter, that bonus may have been an attemt to balance the difference. It all matters.
Do you really believe expect us to believe that realtors don't have any influence in showing certain homes (which might have a bonus) over others??
CouponJack, for many Realtors(myself included), the fact that there is a bonus offered to the Realtor has no influence whatsoever as to which homes are shown. I explain to my clients upfront(and put it in writing) that my commission is a percent of the sales price of the home. If any bonus is offered that is over and above that then that bonus goes towards either reducing the sales price of the house or to pay buyer closing costs and prepaids.
CouponJack, for many Realtors(myself included), the fact that there is a bonus offered to the Realtor has no influence whatsoever as to which homes are shown. I explain to my clients upfront(and put it in writing) that my commission is a percent of the sales price of the home. If any bonus is offered that is over and above that then that bonus goes towards either reducing the sales price of the house or to pay buyer closing costs and prepaids.
Which is better than the alternative but could still influence a buyer.
It's kind of like covering both ends. If the agent is greedy and doesn't tell the client then that agent would probably steer the client to the house that pays more.
If the agent is upfront about the bonus and gives it to the buyer then would it not be in the agents best interest to steer to those houses due to reduced price and the odds that the buyer would take it first thereby reducing the time/money spent searching and getting your commission faster?
Bonuses should be banned. However some realtors disagree w/this.
If you are for keeping bonuses, then you can argue they help homes get shown more (thus you go back to the problem of realtors showing homes that might not be in the best interest of the buyer....)
[quote=jimj;7995949]Which is better than the alternative but could still influence a buyer.
It's kind of like covering both ends. If the agent is greedy and doesn't tell the client then that agent would probably steer the client to the house that pays more. If the agent is upfront about the bonus and gives it to the buyer then would it not be in the agents best interest to steer to those houses due to reduced price and the odds that the buyer would take it first thereby reducing the time/money spent searching and getting your commission faster?[/QUOTE]
jimj, based on your comment it appears that agents are in a no win situation. On one hand we get accused of steering clients to higher priced homes because our commission will be higher and on the other hand we get accused of steering clients to lower priced homes because it will reduce the time/money spent searching and getting our commission faster.
IMO, for the vast majority of Realtors, neither of these is true. What is in my best interest is to satisfy the needs of my clients and exceed their expectations. Most of my business are referrals from previous clients because I did what was in their best interests and they appreciate it. Sure, there are exceptions, but there are exceptions in every profession.
Listings with such bonuses probably get shown more frequently than those without, for the obvious reasons. There is nothing however, that a buyer's agent can do to compel a buyer to buy one property versus another.
I always disclose such incentive during a showing and rebate it at closing.
Your agent is most likely not getting the full commision. It has to be split with the sponsoring broker.
If indeed the commission was only $1000, either this is a very low priced property or the commission was sub standard to begin with. If the latter, that bonus may have been an attemt to balance the difference. It all matters.
I have received a bonus from the seller and made a contribution to the buyer at closing. This is a common practice and a win-win for buyer and seller. There is nothing unethical about it.
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the bonus check
