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And The Answer Is: Baffoonery. The Question: What is Agents Offering Bonuses For Full Price Offers?

By Jane Taylor

Real Estate Agent with RE/MAX Realty Group

March 21, 2010 07:01 AM

OK, I can't stand it anymore. I read it once, then again in someone else's listing remarks. As I was researching some properties, I ran into it again!! "$3,000 BONUS FOR FULL PRICE OFFER!!" Paaleeeease!!!

Let me see if I'm tracking this invitation correctly. After much searching and careful consideration, my buyer decides to put in an offer on a house. She's familiar with the area (or not) and has the comps in her hand. She tells me the offer to which I respond, "Don't you want to go higher so I can get my bonus?" Really? Has anyone EVER done this??? Let's just say that you didn't actually ask that question. Did you manipulate the situation so that you could collect?? Well that's just disgusting, and it's little wonder why there's so much distrust in the industry.

Perhaps I'm missing the point. Could it be that the listing agent has convinced the seller that this is the route to take for a full price offer? Talk about the blind leading the blind!! How about taking that bonus money and investing in some quality staging, or necessary repairs or improvements?

Maybe I'm being a total biatch and missing that the agent just wants your butt through the door. Here's a secret, don't tell anybody: If the property is priced correctly and meets my buyer's criteria, I'm comin'! Enough with this idiocy!!

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Margaret Goss

@Properties - Winnetka, IL

Chicago's North Shore & Winnetka Real Estate

I've never seen that wording here - what lunacy. The listing agent must be desperate.

Mar 21, 2010 07:06 AM

Dan Tabit

Keller Williams Bellevue - Sammamish, WA

Jane, I've seen these in our area too and to me it just says, "Overpriced Home." If the situation ever arose where I had a buyer for one advertised this way I would first disclose this to my buyer and then do my normal research to detirmine what the offer should be, ingnoring the incentive. If we did detirmine that full price made sense, I don't think I'd keep it. I'd either write the offer 3k low, disqualifying myself or provide it to my client.

Mar 21, 2010 07:07 AM

Jane Taylor

RE/MAX Realty Group - Gaithersburg, MD

Thanks! Margaret - I'm glad to hear that.

Dan, I ALWAYS disclose when there's a bonus and I split it with them. My commissions come and go, and my integrity is not for sale.

Mar 21, 2010 07:10 AM

Lisa Ludlow Archer

Live Love Homes-Keller Williams, Charlotte, NC Ballantyne Area - Waxhaw, NC

Jane:

We have a lot of that stuff here too. If I am offering a bonus on a listing we write, "Bonus on negotiatied offer of contract to close by x date".

'Many blessings from Charlotte, NC'

Mar 21, 2010 07:13 AM

David Pylyp

RE/MAX Realty Specialists Inc., - Toronto, ON

Interesting Point; If it is priced right, the buyre will appear.

we have a co operating broker commission disclosed; and occassionally have seen and used a bonus to selling broker to encourage showings and offers.

I have no problem paying a Selling Agent an extra few thousand for encouraging Property A vs Property B is they offer the same features location and price. This money goes directly to the buyers agent.

The interesting point (and Better) you make is that it could better be spent on staging and painting.

Mar 21, 2010 07:36 AM

Richard Strahm

American Foursquare Realty - Lansdale, PA

Lansdale and North Penn Real Estate

I see that offer all the time! As a buyer's agent it would be a) unethical NOT to disclose that to your buyer, b) not really following your fiduciary duty if you advised the client to pay full price so you could get a bonus!

Mar 21, 2010 07:47 AM

Mary Yonkers

Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA

Erie/PA Real Estate Instructor

Jane--You said it very well and the commenters agree with you. Now why can't the seller and their agent get it?

OVERPRICED!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Mar 21, 2010 07:56 AM

Kevin Dunlap

Trident Investments Group - Las Vegas, NV

I understand this technique as a form of marketing and understand why a listing agent would do this from the seller's perspecitve. Regardless if the home is overpriced or not that is not the real issue. If the seller needs to sell and has a loan payoff amount equal to the sales price (plus commissions) then any offer below that amount may be unacceptable and probably has already received a few lower priced offers.

Take a look at these deals from multiple angles. Not just from the aspect of comps.

Mar 21, 2010 08:21 AM

I think one of the greatest aspects to Active Rain is the varied collection of opinion. Kevin Dunlap has an interesting take. However, sellers can never confuse what they NEED with what the market will bare.

Mar 21, 2010 08:52 AM

Jo-Anne Smith

Oakville, ON

Jane,

We used to see that fairly often in this area too, however it seems to have died out to due to ethics and rules and regs.

I agree with you that it definitely gives this business a bad name....

Mar 21, 2010 02:35 PM

And The Answer Is: Baffoonery. The Question: What is Agents Offering Bonuses For Full Price Offers?

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