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Replies (25)
- wetwillie
- Contributions:27
This may be an over simplification, but you really want the house to stand out to buyers as they are the ones that buy. Lower your price instead. That tactic is generally frowned upon on this board. There are so many reasons this is not a good idea. To name a few:
1. Pushy agent turning off a buyer that would have been a good fit.
2. Agents dragging buyers through your house even though it clearly doesn't meet their criteria.
3. A "hard sold" buyer waking up and backing out at the last minute.
4. Even worse, coming after you after closing having buyer's remorse using a non-disclosure lawsuit of some kind.
- Tiffany Bond, "TiffanyBond"
- Contributions:3010
Depends on your market. Offering the money to the buyers toward closing costs may actually have a greater impact in the bang for buck category. (bringing $1,000 less to the table for most buyers means more than a $1,000 price reduction over the course of 30 years)
- Tiffany Bond, "TiffanyBond"
- Contributions:3010
Although...make sure you put this info on your flyers, etc if the state law allows. Make the buyers push their agent, not the agent push the buyers.
- barbara mcmahon, "NVST in homes"
- Contributions:64
Good thinking. my answer would be no. Buyers are very price conscious right now. If you are willing to offer a discount, give it to the buyer. They are the ones searching o the internet and will make their agent aware of the properties in which they are interested.
- Chad Yates, "tcyates"
- Contributions:7
Save you money and you it to do something to your home that will make it stand out in your market pool! Some say the bouns works, some say it doesn't, but I believe that with out buyers it doesn't matter what you offer....
- mckylie
- Contributions:5034
mle_mle - Our Agent tried this and it didn't work!
- Winifred
- Contributions:842
We tried this and it never worked. I laugh now when I'm looking and I see sellers trying this ploy. Our agent wouldn't even take it, we've discussed the topic. He would pass it along to us.
Cut your price. Make sure your house is in outstanding condition. Make sure the price reflects the condition of the house. For example, if you've lived there for a while it should be apparent you have made some upgrades. The appliances should be current to this decade. If you need a new roof, get one. If the HVAC is old, get a new HVAC. If the windows are old, get new ones.
Anytime I see a buyer's agent bonus I cross my fingers and hope the client hates that property because it's just too sticky a situation. Do they think I'm showing it only because of the bonus? Do they know about the bonus? Do they expect all or some portion of the bonus?
If you want to entice local buyer's agents and make sure your property is not passed over raise the CC% from 2.5 to 2.75% let's say or whatever $1,000 comes out to. That way you know the agent is going to see that the % is higher than average but you're not putting up some big cheesy sign that says "free money".
Here is my alternative solution. Take the $1,000 and buy a 2 year comprehensive home warranty for your property that covers everything. This works especially well with homes where utilties and other systems are not necassarily in bad shape but are at the later stages of their useful life cycle. When buyers come in your agent can remind them if they buy the house they'll have nothing to worry about for 2 years. In this economy, the concept of no big fat repair bills in the near future is a very enticing proposition.
bonuses are stupid, lower the price, pay closing costs AND buy a warranty...
I thought my info was thumbs up worthy AZ rob, no?
- Durenda FachtmannCEC CRS GRI, "Durenda"
- Contributions:512
mle_mle
- If you have #1 priced your house aggressively first based on the most comparable closed sales within the past 2-3 monts, with allowed adjustments and second based on competitive available properties
- If marketing is aggressive (not just the free internet sites and a few fliers) aggressive but high intense targeted markting (which costs, but is worth every penny.)
- If the house is uncluttered, clean and shows invitingly well (lights on, no dark area), and smells clean. (Need to appeal to all the senses of the vast majority of potential buyers)
- If the house is readily accessible at the potential buyer's convenience
- If you are paying competitive commissions for your market area
Then a bonus will be a waste of money.
As for a "finders fee", you and your realtor need to check with the laws in your state. In some states, paying "finders fees" to unlicensed brokers is a felony.
The goal in selling is not to come in less than 1st place.
Best of luck.
- Durenda FachtmannCEC CRS GRI, "Durenda"
- Contributions:512
correction "unlicensed" individuals
- klarek the realist
- Contributions:7044
I've said it before and I'll say it again. If I were a buyer and I found out that the house my agent is steering me towards had a generous bonus for him on top of the already generous commission, I would cock punch him. Then I would fire him. Then I would camp out in front of the house and tell every client looking at the house that their agent is getting an extra bonus if they buy it.
You took my point to a whole nother level...I love it!
- Beth Mason, "Beth Mason"
- Contributions:292
Price it low and watch it go...
- Chris & Stephanie Somers, "TheSomersTeam"
- Contributions:1187
I dont think the bonus will make much of a differnce at all. I have found that in these types of market, buyers agents are just happy to do a deal and are thrilled when a deal gets accepted. Thus, the bonus would have no impact. Now a $5 to $10K
- Chris & Stephanie Somers, "TheSomersTeam"
- Contributions:1187
A $5,000 to $10,000 bonus would have a little more impact per se, depending on the sales price of the house. Even then, a buyer will decide if they like house A better than house B and the buyers agent will gladly help get a deal accepted whether the house that the buyer wants has a bonus on it or not.
- wetdawgs
- Contributions:26470
As a potential buyer, I was be extremely offended to see a buyer's bonus of $5 to $10 k offered. Should I learn about that, I'd never even view the house. Why? because ultimately I'm paying for it.
Not seeing the home is a short-sighted move but I do understand where you're coming from. Most agents have no spine so turn it around to your advantage. Tell them you're only comfortable seeing the property if the bonus is waived and given as a credit to your bottom line should you choose to buy it.
- Durenda FachtmannCEC CRS GRI, "Durenda"
- Contributions:512
If a buyer is working with a realtor, and the buyer's realtor is showing his/her buyer all the properties available within the buyer's parameters (bonus or no bonus offered), then the buyer is being well served.
If the buyer chooses a property that happens to have a bonus, why get bent out of shape? Besides, all realtors know that in negotiations, the bonus is the 1st to go away.
If a buyer's realtor is not showing the buyer all avalilable properties within the buyer's parameters, then the buyer may need to seek another realtor representation.
If the buyer is in a buyer agent contract with his/her agent, the contract may address this.
That said, and it's been said before if the property is aggressively priced (not price +), marketed aggressively, readily available, shows well (uncluttered, light bright), realtors paid fairly for the local market, the house should sell in reasonable time (for the given market) without a bonus offered.
- Jeanne Feenick, "www.feenick.com"
- Contributions:350
Forget the bonus, go with a price improvement - price is the way to attract the buyer.
- Connie Wildasinn, "Connie Wildasin"
- Contributions:1178
I totally have to agree with the pricing... it is the most important issue in todays market... and I usually suggest if a seller has a ittle extra to let go for incentive, give it to closing clost for he buyer.. in todays market place... they usually need it... if the listing agent and seller want to give a 'bonus' make it a higher commission to start and don't attach it to a price at all... keep it out there as a way to make sure that the house is always shown... and for all the blogers saying your agent is stearing... it is hard to do in to days world where buyer often know about a property before their agent knows... with auto repsonders to the MLS... the second a property is listed my buyers know everything about it ... as long as the basics of the property meet their needs to start with... good luck
- David Wakeman, "Wakeman Realtors LLC"
- Contributions:290
If you are going to offer an incentive, offer it to the Buyer. The Buyer is the one who will ultimately make the final decision. If the Agent is going to be more motivated to push a house on their Buyer because of an incentive, then that Realtor is not looking out for the Buyer best intersts, rather they are looking out for their bottom line.
- Chuck Mauszycki, "Chuck Mauszycki"
- Contributions:10
I'm not crazy about Buyer Agent bonus (beyond the Commission). I think it spells "pushy agent" to the Buyer. Also, as an agent, the "bonus" should be (and I believe even needs to be) disclosed to your Buyers, if this offered. This, to prevent a potential "lawsuit" later (or potential buyer remorse).
$1000 agent bonus- Will this be helpful to help us sell?
Has anyone offered an agent bonus before? If so, was it effective? I'm hoping that this will help our house stand out a bit to buyers agents.
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