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$30k bonus to the buyer's agent who can bring a full priced offer on a home that is $400k overpriced at $1.7M.
That's what the listing agent wrote.
You'd have to be a big sleazeball to try to convince/push your buyer to overpay by $400k.
I can't understand why some listing agents think this works.
This is such a backward tactic. The only way you'd get someone to pay full price on an overpriced home is if you drugged him and then brainwashed him into thinking he actually wanted the house.
Maybe the home is not technically overpriced, but has a unique feature that only rare buyers will make use of. For example an interior gym and swimming pool, or a home hospital suite, or something else fairly bizarre.
so take your client who has $1.3MM to spend and the home works for and write a full price offer with $400K of various concessions. Have you not met the terms of the listing agent's offer, and are due your $30K? Heck, write the full price offer, no concessions, give them $10K in earnest money and worst case walk away from the deal and still collect your $30K, netting $20K
so take your client who has $1.3MM to spend and the home works for and write a full price offer with $400K of various concessions. Have you not met the terms of the listing agent's offer, and are due your $30K? Heck, write the full price offer, no concessions, give them $10K in earnest money and worst case walk away from the deal and still collect your $30K, netting $20K
GOOD TRY....but i'm sure the seller agent won't pay the 30k unless and until the sale is finalized...
We have one town in the market I work where a $10,000 bonus is somewhat routine (median sales price: $650k, most of the bonuses are on homes of $2m plus). Years ago before I was a realtor, my agent convinced me to offer a small bonus ($2,000) to the selling agent and we didn't get anything out of it. Yes, $2,000 isn't the same as $10,000 or $30,000, but I still think the buyer chooses the home — we don't really "sell" them anything. And if you're "selling" your buyer on a home that isn't what they want, you're doing them a disservice.
so take your client who has $1.3MM to spend and the home works for and write a full price offer with $400K of various concessions. Have you not met the terms of the listing agent's offer, and are due your $30K? Heck, write the full price offer, no concessions, give them $10K in earnest money and worst case walk away from the deal and still collect your $30K, netting $20K
In my state, commissions are not owed until the sale is closed. That's what it says on the standard contract we all use.
Quote:
Originally Posted by BryaninMSP
We have one town in the market I work where a $10,000 bonus is somewhat routine (median sales price: $650k, most of the bonuses are on homes of $2m plus). Years ago before I was a realtor, my agent convinced me to offer a small bonus ($2,000) to the selling agent and we didn't get anything out of it. Yes, $2,000 isn't the same as $10,000 or $30,000, but I still think the buyer chooses the home — we don't really "sell" them anything. And if you're "selling" your buyer on a home that isn't what they want, you're doing them a disservice.
exactly.
you'd need a buyer rich and dumb.
I just laugh at the bonus. The only people who would pay that much in my town are Chinese, and even they're not stupid.
Quote:
Originally Posted by luv4horses
Maybe the home is not technically overpriced, but has a unique feature that only rare buyers will make use of. For example an interior gym and swimming pool, or a home hospital suite, or something else fairly bizarre.
in this case there is no maybe. ~180 days on the market
typically a house that is really worth 1.7m would sell within that time. $1.7m homes are a dime a dozen here.
If my agent didn't tell me this listing had something hinky going on when showing it to me, my alarms would be on alert about my agent. If they didn't notice it, they either were not familiar with the market, or, they didn't read what they were showing me. Most agents I've worked with recognize the addresses or house photo right off, or, if they did not know the property, they would immediately start checking it out beyond the MLS. I guess this is the rather wordy way of saying, I would have 2nd thoughts if the agent just read the listing as we approached the home. (Did that make sense? Low caffeine intake point)
If my agent didn't tell me this listing had something hinky going on when showing it to me, my alarms would be on alert about my agent. If they didn't notice it, they either were not familiar with the market, or, they didn't read what they were showing me. Most agents I've worked with recognize the addresses or house photo right off, or, if they did not know the property, they would immediately start checking it out beyond the MLS. I guess this is the rather wordy way of saying, I would have 2nd thoughts if the agent just read the listing as we approached the home. (Did that make sense? Low caffeine intake point)
On my MLS printouts it would be very easy to overlook a buyer's agent bonus if it wasn't noted in the agent remarks. I couldn't even tell you the commission being offered on the last ten properties I showed. Knowing the compensation offered seems to me to have nothing to do with market knowledge or did I miss something?
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