The Price is in the Pudding (Yeah, I know it's Proof)

By
Real Estate Broker/Owner with RE/MAX Access 574299

The Price is in the Pudding (Yeah, I know it's Proof), so Put it in There.


If your home has been on the market for what may be considered a long time, an idea to make your property seem more desirable might be to
Man pushing Dollar Sign
 entice the agent with a bonus.  

Now I like bonuses as much as the next guy, but I personally don't think that is going to get your property sold any quicker.  When I am searching for a home for my buyer, I look for homes that are in their price range and for homes that are going to meet their conditions.  If my buyer needs a home that is no more than, lets say, 160,000 and you have your home priced at 161,500 (numbers made up to prove a point) and you are offering a $2000 bonus to the agent your property falls outside of my client's range.  All you need to do is switch that $2000 dollars and put it in the price.  If you can afford a bonus than you can most certainly afford a price reduction.

The Multiple Listing Service (MLS) is first and foremost a tool for agents who will scour it for their clients and likely find a number of suitable homes for their client to choose from.  I can only speak for myself, but I am just as happy finding a home for my client and negotiating terms on my clients behalf, not mine and receiving the commission that the listing brokerage is offering.  If, as an agent, I am looking to the commission and the bonus first, then by default, I am not looking out for their interests which would be a breach in my fiduciary duty to them.  I never, (and trust me, I rarely say that word), counsel my clients on offering bonuses to agents.  

There are many things that will get your home sold but the big three are PriceCondition and Accessibility.  If there is talk starting of offering bonuses to agents, then you are most likely not priced correctly.  If one of the other things are out of whack, like condition or accessibility, a bonus to the agent will not help sell your home.  Put those things in order, make necessary repairs and have your home show ready at the drop of a dime and then let them see it at the drop of a dime. 

If your home is positioned for the market, (i.e, priced correctly), in great condition and show ready, there is a buyer for your home and it will sell.  


Home Sold 

BLUF, (Bottom Line Up Front for us military folks), The Price is in the Pudding, So Put it in There!

This Blog is not intended to solicit listings that are already under an exclusive right to sell contract with a brokerage.  If you do not fall into this category and would like to know more about how I can help you with selling your home in the Schertz, Cibolo or San Antonio Texas area, please feel free to give me a call!

 

 

 

 

 

 

 

 

 

 

 

Posted by

Brenda Mullen – San Antonio Texas Real Estate Professional

Brenda Mullen Your San Antonio TX Real Estate Agent
 
Selling a San Antonio Texas area home involves many steps and having an experienced  San Antonio  Texas Real Estate Agent by your side will make the transaction run a lot smoother. I would love to be your San Antonio Texas Area Real Estate Professional! I assist both buyers and sellers in the San Antonio Texas area with either the purchase and or sale of residential real estate.
 
As an Accredited Buyer’s Agent, I have received special training to guide and educate you through the entire home buying process. From start to finish, I listen to your needs and desires in what you would like and take the information you give me to find you home.
 
As your San Antonio Texas listing agent I am well versed on the local San Antonio Texas area Real Estate Market. You can expect personalized service that includes a detailed consultation on how to best position your home to be competitive in today’s market with an in depth comparative market analysis, and advice on staging. I use the latest and most up-to-date marketing methods to get your home in front of as many buyers as possible. Being your San Antonio Texas area Realtor® not only involves just finding the home or selling the home, but being your guide, negotiator, advisor and advocate and making sure that your needs and goals are met. Being your San Antonio Texas area Realtor® is one of my truest passions, and “Helping You Find Home” is my number one priority.
 
 
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Brenda Mullen
Broker-Associate/Realtor®, ALHS®, MRP®, ABR®, ePro®

Team Leader The Mullen Group with RE/MAX Access - Helping You Find Home
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Comments (27)

Brenda Mullen
RE/MAX Access - Schertz, TX
Your San Antonio TX Real Estate Agent!!

Hi Virginia-I really don't mean to put any Realtors down for their clients offering bonuses.  Sometimes they can help, (I like em too).  My big point is that if a listing is overpriced, then they really, instead of offering it to the Realtor, should apply it to the price and give it to the consumer.  

Now...let's say the property is priced right, but this home is competing with new builds in the area, well, then maybe. However, I still think they would get a better deal by giving it to the buyer.  Just my opinion of course.  Thanks for commenting :)!

Apr 18, 2011 02:34 PM
Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Brenda - Thank you!  Thank you!  Thank you!  I'm sorry, but I just don't get the whole bonus to the selling agent strategy.  The buyers agent is not the one buying the property, so if the sellers want to offer some kind of incentive, offer it to the buyer - either reduce the price or offer a closing cost credit.  Doesn't that make more sense?  Really???

Apr 19, 2011 02:53 PM
Brenda Mullen
RE/MAX Access - Schertz, TX
Your San Antonio TX Real Estate Agent!!

Hi Donne-Most definitely!  Give it to the buyer in a form of a price reduction or closing cost credit.  Thanks for stopping by!

Apr 19, 2011 03:02 PM
David Evans
RE/MAX TOWN AND COUNTRY - Cumming, GA
HUD NLB Cumming GA

In todays market there is not enough room for a bonus... Appraisals are coming in a razor thin margins and that strategy went out with the equity that we all lost in 2008. Great post and so true! ;)

Dec 18, 2012 09:13 PM
Chris Jenkins-Sarasota Realtor
HomeSmart - Sarasota, FL
"Expect Success"

Hi Brenda, personally, I totally disagree with the agent bonus approach.  I actually give pause to showing these, as I don't want even the appearance of impropriety, or my client questioning my motives.  The one time I received one, which was 5 or 6 years ago, I gave it to my clients... as a price reduction, of sorts.

Dec 18, 2012 09:13 PM
Edie Czerniak
NextHome Advisors - Cape Coral, FL
My Only Purpose is to Deliver Successful Results

Excellent post, what about the listing agent who puts in comments buyer to pay listing agent bonus at time of close of $$$.  We see that a lot in my area now.  I think this is doing a seller a bigger dis-service

Dec 18, 2012 09:32 PM
Lanise Warrior-Johnson
Real Estate Brokers Services, Inc. - Compton, CA
Real Estate Specialist

Great blog, I agree. After a buyer decides on the location, the price, condition and acessibilty of the home will determine howquickly the home sales.  In California, you don't typically see additional agents bonuses....but I LOVE it when I do! 

Dec 18, 2012 10:14 PM
Dwight Puntigan
DRP Realty, LLC - Saint Peters, MO
Dwight Puntigan

Just read several of your blogs.  You do good work.

Dec 18, 2012 10:32 PM
Jack Fleming
Weichert, Realtors - Wayne, PA

Brenda, I agree with you. I'd rather the buyer get a lower price than giving me the bonus. I don't want the buyer feeling as though I'm not working in their best interests.

Dec 18, 2012 10:57 PM
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

I do not let the possibility of a bonus affect what I show or how I discuss a property with a buyer.  However, if the seller wants to try it--certainly can't hurt!  I like to think the majority of agents will forgo the bonus and take it off the price for their buyers.

Dec 18, 2012 11:00 PM
Margaret Mitchell
Coldwell Banker Yorke Realty - York, ME
Seacoast Maine & NH Real Estate

There is another side to this.  What the Seller is doing in some cases is changing the split between the listing and selling agencies, with the emphasis on the selling agency.  e.g. a 60-40 split is common in our area.  One listing offered a 2% buyer agency commission, (40% of 5%) with a buyer agent bonus.  This effectively made it a 6% commission with a split closer to 50-50.

In many cases, the agency will let the agent keep the entire bonus.  This is actually a little cheaper for the Seller to get the same amoint of commission in the buyer agent's hands.

I don't have a blanket policy about receiving a buyer agent bonus i.e. I don't feel the need to give it to the buyers.  It does not influence or limit which houses I show to the buyers.

In general, it may help somewhat but I never suggest it to my listing clients.  I just don't think it helps enough.  Price adjustment is critical for a lower end house.  But as you go up in price range, price adjustment in lieu of agent bonus may have less impact.

My point:  it isn't all right or wrong.  It depends.  And it may be useful is some limited situations.

Dec 18, 2012 11:14 PM
Karen Berg
Queen Creek Realtor, San Tan Valley Realtor, United Brokers Group (602)919-2375 - Queen Creek, AZ
Experience Matters!

Well said!    This can go along with the Walmart Pricing Strategy of $99,999.    You would lose critical buyers looking between $100-?    I agree that we need to pay close attention to our pricing strategy!

Dec 18, 2012 11:57 PM
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

Amen to your post, yet how many sellers offer bonuses to agents?

Dec 19, 2012 12:27 AM
Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker
I've only had one seller tell me about a bonus. And he told me when he had decided on another agent to list it. Why? Because I had a similar listing down the street and he figured I'd steer clients his way from my marketing of my listing if he offered me a bonus. How screwed up is that? No, his house never sold and is now worth a lot less.
Dec 19, 2012 01:51 AM
Tyler Soulliere
Windsor Realtor - Windsor, ON

I am now convinved that offering a bonus is not the right thing to do. I myself have a home that just won't sell and had thought about this. Thanks for the eye opener.

Dec 19, 2012 01:59 AM
Brenda Mullen
RE/MAX Access - Schertz, TX
Your San Antonio TX Real Estate Agent!!

Good Lord...lol :)!  Well, the post is getting the attention I want it to lol :)!  Thanks all for dropping by!

Dec 19, 2012 05:24 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Suggested. You are SO right on the money with this.

The agents who are looking only for more money for themselves are not looking out for their clients' best interests.

Dec 19, 2012 10:48 AM
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Brenda, like minds... we just wrote a very similar post yesterday!

Dec 19, 2012 10:12 PM
Paddy Deighan MBA JD PhD
federalfinanciallawgroup.com - Vail, CO
Paddy Deighan J.D. Ph.D

As I was reading your reference to pudding., I was listening to Bing Crosby sing "I Wish You A Merry Christmas" and his reference to "figgy" pudding...still trying to fiugiure out what that is!!!

Dec 20, 2012 02:33 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Right now the inventory is so low that you don't need to offer a selling bonus, just a good home at a good price.

Jan 02, 2013 03:04 AM