Home : Blogs : Charlotte Real Estate- TerryMcDonald : Charlotte, NC, Terry's Blog

$50K Buyer Bonus... How much is ENOUGH?

So how much is enough? Take a look at the flyer I received by email today. Suppose the home sells for 1.3M, that is a 39k Buyer Side-- plus 50K, 89K 6.8%-- loads of dough. Two questions, 1) Is it unethical to show this home even if you make your buyer aware of the agent bonus 2) As the LA, is it unethical to make this offer to increase showings... do you think it will increase showings? I do. The last question I have is a rhetorical one, with offers like this, is it any wonder that the Redfin's of the world want a peace of our business... or that they can suggest we are lazy bums not sufficiently motivated by 39k so they need to bribe us with 50K more?

$50,000 Selling Agent BONUS!

Did you know average price per square foot of waterfront homes in Cornelius is over $300 per square foot???

Offered At: $1,450,000
21621 Scottcrest Circle
Cornelius, NC 28031

Waterfront
3 Level Home
Private Dock
Year Round Deep Water
3 Car Garage
Large Rec Room with Full Bar and Wine Room
5612 HLA with additional 700+ unfinished sq ft for another bedroom/bathroom
MLS #707251

COMMENTS:

Custom built waterfront home in Cornelius is listed $300,000 below value(5,612 x 312=$1.75M)! Some agents have not shown this home because of it's proximity to I77. We are giving you 50,000 reasons to show it! This 3-year old custom home couldn't be rebuilt today for under $1,000,000! Just ask yourself - what would a half-acre waterfront lot, with a private dock/pier and deep water in Cornelius cost? $500k?, $600k? the average is $700k just for the land! Bring your buyer now for an unbelievable deal - plus a $50,000 BONUS!

Scarrier yet Zillow ranks us as the 3rd strongest (highest appreciating) market in the nation... yeow.

Terry McDonald

www.TerryMcDonaldRealEstate.com

www.CharlotteCommunities.net, your on-line relocation guide

Blog at http://charlotterealestateandcommunities.blogspot.com

See Charlotte Communities http://terrymcdonaldrealestate.slide.com

Posted by Charlotte Real Estate- TerryMcDonald on 08/28/2007 09:15 PM

Comments (8)

buyer agency, charlotte real estate, charlotte home prices, lake norman real estate

8 Comments on $50K Buyer Bonus... How much is ENOUGH?

AUG

2007

I don't know what's enough, but out in Sacramento, I hear advertisements on the radio where KB Homes will give you $20K, a new prius, a cruise, and some other benefits...all for buying a new home...how are Realtors supposed to compete with that? I point out the mature vegetation...that's always a strong one...

Uh did you take into consideration the cost of a worth while price reduction in some cases is more expensive than a bonus? It's not unethical. It's strategic.

I agree with Rondel. I don't know what's enough anymore. Some builders now these days will offer just about anything to buyers these days if they buy any of their homes. I wouldn't mind being the buyer's agent for that property that's for sure.

I don't think it's unethical. I agree with the above comments, look at what the builders are offering. By the way, I love Lake Norman. I used to live in Huntersville and sure has changed since 92.

AUG

2007

All is fair in love, war and business it seems. Is it right? That is the question isn't it.

As a buyer's agent, how do I get them to not make the offer $50K less than the asking price or should I even try?

The listing agent is doing a good job of marketing.It is not unethical.It would be unethical if a buyers agent does not show other listings with less commission, hoping the buyer will buy this one.

But if I were the listing agent, I would reduce the price 50k so we would have more prospects and maybe a bidding war. I do not know if the property is overpriced by 50k, and that may create appraisaal issues.

A few thoughts-- first this is Not a new home, it is a resale. Bonusses are common here on both new and resale here--but a large NH bonuse woudl be 10K or 15K. This is an unprecedented bonus from my experience.

2nd- "All is fair in love and war?" What about the Buyers Agent's fidicuary relationship to his/her Buyer? No all is not fair when you are representing a client in an agency relationship. You are to protect their interest.

And Shannon, not arguing that it is "strategic", it is allowed it is not illegal-- but as BA, I don't feel the need to disclose a 2K bonus-- however, I could not accept a 50K bonus without disclosure- and disclosure would in all liklihood produce an offer 50K less.

So it may be less strategic and just more desparate. I think it will increase showings, we'll watch and see the outcome.

No takers on Redfin question? On the Redfin blog they leave up comments that say things like "the typical real estate agent doesn't care about your needs, they only want to steal a commision..." In fact some say Redfin's whole approach is based on the idea that at best agents are lazy and at worse they'll steal from you--

Doesn't a 50K bonus feed into that? 39k is not enough for us to get out of bed I suppose?

Why wouldn't you drop the price 40k, Advertise that, and by the way there is a 10K agent bonus, thanks for showing.

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?