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SELLER INCENTIVES for AGENTS

I've noticed that sellers are now offering all kinds of incentives to induce agents to show their houses. It might work but I am not so sure.

If the house meets the criteria of the buyer, chances are the agent is going to show your house with or without an agent incentive.

Some incentives are time sensitive: sell by..... Some incentives are dollar sensitive: Full price offer.....

The worst incentive, in my opinion is the bonus dollar incentive. Most of these are split with the Broker. So bonus to an agent for $1,000 ends up $500.00 to the agent.

I would suggest an agent incentive be something that could not be split with the Broker. Example: Weekend getaway (I do not think the broker will go with you), Spa gift certificate, Restaurant gift certificates.

However, nothing will work if your house is overpriced. Look there first before offering incentives.

Posted by Janice Lipka on 06/03/2007 09:19 AM

Comments (9)

9 Comments on SELLER INCENTIVES for AGENTS

JUN

2007

Janice-Good Points.

Recently I had a conversation with a top agent in our market. He stated he believes offering a larger co-broke is much better than any other type of seller bonuse. His point, and I now agree with it, is that he can search the MLS by a co-broke commission amount, which he does when pulling properties together to show a buyer.

Our market has the highest listing inventory in history, I believe we all need something to set our listings apart and get more activity.

Beyond the right price, which is essential, this strategy might work.

Thanks for the post.

Good Morning Darren, I like the the larger co-broke Idea. Thanks!!!

Janice,

Your question has as many answers as there are types of sales people. Some Agents always think about the money. Some agents always think about there clients.

I rarely look at the offered compensation. I may glance to make sure that it is not just a ham sandwich. Over the years I have always met this question when asked by a seller what my oppinion was with the following.

If you want to be the first home sold, then offert the best price as that is what will motivate any buyer who is sitting on the fence contemplating more than one house.

Agents do not choose houses for buyers to move into.

Does anyone think there is an ethical issue involved in incentives -- as long as they are disclosed? It troubles me, even if they are disclosed to the buyer.

JUN

2007

Good morning Janice.

Just a thought but shouldn't earning a living be incentive enough. The idea of someone getting a little extra for just doing their job is troublesome to me. Especially in a time when you hear a lot agents complaining about the market being slow.

Just a thought.

Jason

Good Moring Jason, I totally agree. The sellers are nervous in this market. I usually try to talk them out of the incentive. I do not think they should be legal.

Hi Ann, I do not like these incentives. If there is an incentive, there is no room to negotiate. The agent must let the buyer know what they are getting for selling this house. I think the incentives border on unethical.

JUN

2007

Janice: Excellent point about the overpriced house. Agent incentives here in Georgia are unbelievable! I mean CRAZY! I went to an agent luncheon at a new home community last week and they were offering a 2-year lease for a Mercedes C240 with your third closed deal. I mean the builders are pratically giving away their profits to sell their homes. I'm not really seeing too much with the private sellers... as they want to keep every cent of their money. :)

JUN

2007

Wow!!! I think I will move to Georgia.How much are the homes??? The bldrs here are giving some incentives, but that much.

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