Hmmm. I'll have to try that one... pay a high commission and your house will sell faster. That's a neat concept.

Mariana, that's the way to see real estate through very realistic eyes.  Money does talk to some agents.

Makes sense.  Those numbers are bad...not many people getting paid.

I know an agent that used to do that around here and on open houses they would be lined up at the door with agents

Mariana, Our areas sound very similar. We do have some agents offering higher commissions and as you said money talks!!!

Money is a great motivator, this is a great marketing tool!!!

Money is a great motivator, this is a great marketing tool!!!

Mariana...it's great to hear a little reality check! I was trained in the late 80's and all of the old techniques are coming back...I love it!

My homeymoon was paid for by an agent bonus that was a Caribbean Cruise on a bank owed property I sold back in 1992! Plus it was a 4% to selling agent commission! Bring back the old days!

On another note...I called you today about the KW Maps Blog Coaching Program? I couldn't find it on KW Connect? How do I get more information?

This is definitely a trend in our area, Mariana. Lots of folks not getting paid each month and some not since the end of last year, Yikes. I have to say, though, as a buyer agent I try to help my buyers find the best home for their needs (many of them decide what THEY want to see) and never even look at the commission. So it may or may not make a difference.

Jeff 

I agree with Jeff.  I have never never shown a buyer a home just because the selling agent offered a bonus or a higher commission.  On th other hand, I have put some listings at the bottom of my list because they offered a very low buyer split.  Sellers should be aware of how much their listing agents are offering to cooperating buyers' agents.

Stacy - it is like clockwork ...

Ray - Money DOES talk.

Chuck ... and to figure that agents, like us, held SEVERAL sides of transactions in that month. Many agents are not gettign paid.

Dave- It is interesting, huh?

Mana - Higher Commissions are definitely an incentive.

Craig - It is a good marketing tool.

Bill- a Cruise? Cool!!

Hi Jeff! Yes. We are the same way and a higher commission really will not be a factor for some agents. But a higher commission DOES increase showings and our experience has shown the increase in GOOD offers asa well.

You are right. A LOW co-op is a bad decision on a Sellers part.

I agree with Jeff.  I have never never shown a buyer a home just because the selling agent offered a bonus or a higher commission.  On the other hand, I have put some listings at the bottom of my list because they offered a very low buyer split.  Sellers should be aware of how much their listing agents are offering to cooperating buyers' agents.

(Sorry, I wasn't logged in before.) 

Mariana. Agreed. And I discuss this very issue with sellers as well. You don't know who it might impact, and certainly a low co-op can be a big negative in this market.

Jeff 

Interesting post, I do not show properties  because of more commission to me, I show properties because it fits the needs of my buyers, I would rather see agents give a bonus to the buyers not the agents! I also do not look at the commission to the selling agent, I always put my buyers first not the money, even though I do not like making a lower commission, my fiduciary duty is to my buyer

Mariana, now I'm going to go look at all the closing in Washtenaw and see how many didn't get paid. It is true, I have gone round and round with a relo company on this issue. 

Good points.

I always, always show agents in training the benefit of offering higher co-ops.  It pays in shorter listing periods, less angst from sellers, less mareting and advertising costs, etc., and makes contract negotiations so much easier. 

Agents who try to make big bucks on every deal lose in the end because they have more expired listings and more angry sellers. 

There are a lot of agents not getting paychecks these days. 

Hey Mariana~You are exactly right. I have been using this tactic over the last few months with some success.

Jean - This post was intended to share a good marketing tip with Sellers and their agents. There are a lot of real estate agents who will try harder to sell a home that is offering a higher co-op. I am not implying that these agents are not putting their Buyers first, just that when looking at comparable homes, some agents ... the struggling ones ... DO factor the co-op into the equation. Although it is not a part of how we, personally, do business, it IS how other agents may work.

Missy - I bet you will be amazed. I can only hope that the agents who are NOT getting paid are not the sole bread-winners for their family.

Karen - Thanks.

Lenn - There have been times where I have added some of my side of the commission to the co-op, just to make the home stand out more.

Doug- Great!

Hi Mariana - I always discuss this part of the commission component with my sellers, and I do feel it makes a huge differece.  Every agent, especially buyer's agents who have a contract with their buyer client, needs to be looking at the fee offered.  They have a fiduciary duty to their client to let them know if that fee offered is less than their buyer agency contract stipulates, so they can make the decision as to whether to look at it.

And yes, agents do look at fees offered, at least they do here in my area.  And you can bet a slightly higher fee is going to be a bit more enticing than a lower one on a comparable home.  Good for you for having these discussions with your seller clients!

Ann

Ann- You bring up a great point. In many cases a Buyer Agency will stipulate a specific fee, and if the co-op is less than that fee, the Buyer COULD be liable for the difference.

Bleak statistics for us but winning advice is always well received. 

Money doesn't talk - it screams!  But the home still needs to be very aggressively priced in order to sell.

Great post!