Real Estate Secrets?????????
April 8th, 2008 categories: Real Estate News
Last nights broadcast on Channel 12 they had a story “What you agent might not be tilling you when you buy a home” referring to commission bonuses being offered upon COE. They sited a case of a North Scottsdale Home that had been reduced $120k with a $50,000 bonus to the buyer’s agent with a full price offer. So of course this in effect is another slam at REALTOR’s integrity and that we are desperate to make a dime. It would have been nice if they got the “other” side of the story. They did interview Bob Bemis from ARMLS????
As a listing agent, I advise people to price the home right and have it show like a model and it will sell. Increasing the buyer broker commission or offering a “bonus” , in my opinion, does not work.
As a buyers agent in the Phoenix area, when I am preparing to show property- I first interview my clients and try to match their needs and wants in their new home, or they hop on the Internet and send me listings of what they would like to look at. I look at the Realtor Remarks for showing instructions, pet alerts etc. If there is a bonus to the agent- great- but I will never push a client to buy a property because of an increased paycheck for me. I like to sleep at night.
If the home is overpriced to start, it will not appraise and the lender will not loan the money- so any bonus that is offered, might be better spent on reducing the price of the home and getting it sold for fair market value.
I think home buyers are a lot more savy with all of the information available on the Internet. If there is a bonus- I do disclose to the buyer (I have yet to recieve any such “bonus”)
In a buyer’s market- there are great deals out their, so if selling your home- just price it right and competively and it will sell.
Well said Jaime. Your ethics will serve you well.
Great post Jamie! I whole heartedly agree with you!
When a client indicates that they are thinking about offering a bonus to the buyer’s Real Estate Agent I like to suggest that they reduce the list price by that amount instead. If the property is already competitively priced I might suggest that they offer the amount as a credit toward the buyer’s closing costs. The idea is to entice the buyer. Few agents can talk their buyers into a property that they do not want.
Thanks Jay and Francy
I agree 100% - A bonus doesn’t help get a property sold. Price the property right, pay the agent a competitive fee and the property will sell! A bonus is not needed but if it is offered it should ALWAYS be disclosed!
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