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FSBO - agent incentives for full-price offers?

Has anyone ever offiered an incentive to agents to sell your home at asking -- say 3.5% if at asking by a certain date, but 2.5% if below a certain set price, and 3% for acceptable offers in between?  If so, how did it work?
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June 12 2013 - Texarkana
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While you may certainly choose the commission you offer, it may create an ethical dilemma for an agent if a commission is dependent on achieving a specific price.  Unless otherwise agreed in writing, the buyer's agent generally represents the buyer only, and not the seller. As the buyer's agent has a responsibility to their client, commissions that are dependent on a full price offer or a specific price tend to put the agent in a conflict-of-interest position.  Further, the way one decides on which offer is best depends on several factors other than the sales price (such as the length of the closing period, the amount of seller-paid or buyer-paid closing costs, and the nature of any contingencies in the purchase and sale agreement). To avoid confusion and conflicts of interest, we recommend to our FSBO customers that they NOT offer commission bonuses based on achieving specific prices. Instead, we recommend that they offer a competitive commission of either a flat % or $ amount.

Commissions based on when the offer is accepted or closed can also be confusing, so we recommend being very specific about your terms if you choose to go that way.
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June 12 2013
Good agents should not respond to this.  
You would be asking the buyer's agent who has a fiduciary duty to break that duty.   
So then we have perhaps a unethical seller, dealing with an unethical agent and starting out like that sounds like a recipe for disaster to me.
Don't overcomplicate the sale.
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June 12 2013
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Ok, then what about an incentive for selling (offer by/closing within X days)?
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June 12 2013
While it may make sense to negotiate on price based on how quick the sale closes, it may create confusion and uncertainty to also make the buyer's agent's compensation variable.  

One thing to keep in mind about real estate listings is that buyers, not their agents, are primarily in control of the identification of homes available for purchase.  Agents don't buy homes -- buyers do.  Negotiating a mutually acceptable price with the buyer is going to be more effective at getting the home sold, in our opinion, than having a complicated commission structure.
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June 12 2013
Agents in my market have been discouraged from offering such incentives (based on a time frame) because if there is some confusion about the offer, the agent may feel entitled to it even though the offer has 'expired'.

If you've ever registered for a contest, there is often boilerplate language a mile long which indemnifies the contest for any errors or omissions. Personally I think such an offer would need similar language to protect the seller.

Plus agents are technically suppose to tell their client about agent incentives. Whether or not they do, or whether it's 'she said he said' can open up a whole can of worms.

As for me, I would prefer that the incentives go to the buyer - without specific restrictions.
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June 12 2013
Is not going to affect us. What are we going to do, tell our buyer that THEY need to increase their offer so that WE can get a commission bonus from the seller?
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June 12 2013
Realistically speaking, its always better to higher a listing agent that you trust and that is willing to work with you on commission. Not having buffer, meaning listing agent will cost you to leave money on the table.  However if you have experience in selling homes, run with your approach.
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October 12 2013
Not very ethical to base a commission structure on sale price; however, a commission bonus based on bringing a timely buyer before a certain date is used in the industry.
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October 13 2013
A good incentive to sell the property quickly would be to have the sale price set up correctly in the first place. A good realtor who knows your area would be able to set that up for you, but it would not be as a FISBO. Are you looking for a set net figure? A seldom used listing agreement sets a net figure that the homeowner will agree to sell the property. Anything above that amount would go to the realtor. It is an incentive to get the highest price on the home. It is also one of the more riskier agreements around, and l don't know anyone who would put pen to that kind of paper. Their broker would not be too comfortable with it.
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October 13 2013
 
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