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Does Offering A $3000 Buyer Agent Bonus Work?

By David O'Doherty

Real Estate Agent

May 09, 2011 12:19 AM

Does Offering A $3000 Buyer Agent Bonus Work?

I wonder does a buyer agent bonus really help a sale. I have to believe that it might help if only in a nudge way. Lets face it, in today's world the savvy and even the not so savvy buyer has already seen every house on line, checked the tax records, Truliad it Zillowed it, Realtor.comed it. The really savvy ones will have Facebooked the sellers, ( a divorce maybe), Googled them, checked their status on Linkedin....a transfer maybe? Agents are you writing this stuff down?

So how does it pass the sniff test? Well for one, it could make agents take a second look at a house they may have glanced over for some reason or other. Price, Location, Number of Bedrooms, Square Feet, Two Car Garage, some of these can be fixed with a custom builder and a custom home, not all! So the agent could suggest it and it would be best to mention the buyer agent bonus upfront.

Sometimes a home gets overlooked in searches for whatever reason, the Trulia, Zillow, Realtor.com websites have been known to have some out of date, or incorrect information. The feet on the ground routine is sometimes the only way to appreciate what is out there.

Bonus or no bonus..... What do you think?

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Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

NO!

May 09, 2011 12:26 AM

Navona Hart

Century 21 Realty @ Home - Farmville, VA

Selling the Best Properties in Central Virginia

I agree NO, if we are doing what we are supposed to do as a buyer agent and that is get all homes that meet our buyer's needs in front of them, then a bonus provides no value. I believe that a bonus actually undermines us to the consumer.

May 09, 2011 12:34 AM

Kathryn Maguire

GreatNorfolkHomes.com (757) 560-0881 - Chesapeake, VA

Serving Chesapeake, Norfolk, VA Beach

I have never liked Agent bonuses but have accepted them gladly when offered. Did they encourage me to show a house that I otherwise would not have shown my buyer...absolutely not! Did I encourage my buyer to select the house with a bonus over one without a bonus...goodness no! So I don't see how they make a bit of difference.

May 09, 2011 12:35 AM

Gabe Sanders

Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL

Stuart Florida Real Estate

I've seen it result in at least one suit from a past buyer who was not told about the bonus and felt his agent pushed him into the home.

May 09, 2011 12:41 AM

Martha Brown

Long & Foster Real Estate, Inc., Annapolis MD 21403 - Annapolis, MD

Your Homes Around Annapolis Agent

Offering a higher agency compensation makes more sense than a bonus. With that said I have never sold a home that has offered a bonus as my goal has always been to find and show the homes that meet the buyers needs the best not my pocketbook.

May 09, 2011 12:51 AM

Mike Jaquish

Realty Arts - Cary, NC

919-880-2769 Cary, NC, Real Estate

Yes. No. Maybe. I am afraid that some agents troll for bonuses and some of the very high commission offers.

Otherwise, why would builders, in particular, continually offer inducements to Buyer agents?

May 09, 2011 12:52 AM

Jeff Pearl

RE/MAX Distinctive / LIC in VA - Lovettsville, VA

Full Service Full Time Realtor

Many sellers don't have the $3000.00 to ut into fixing the house up. They plan on paying that $3000. out of their net proceeds. I agree, the bonus, when offered, should go to the buyer, not the agent. Let the buyer use it for whatever they want, or lower the price $3000. Offering a bonus is not going to entice me to show your listing or make me any more motivated to write an offer on it, unless it just happens to be priced right and the buyer loves it with or without the bonus.

I have some lots and cabin for sale in Southern VA, and I offered 6% commission to the buyers agent figuring the agent might use part of that 6% to help their customer, and it didn't really increase showings. I think just pricing it right and offering the standard 3% is the best strategy.

I replied to this on another blog, so just copy/pasted my replt here as well.

May 09, 2011 12:57 AM

Bill Gassett

RE/MAX Executive Realty - Hopkinton, MA

Metrowest Massachusetts Real Estate

If a buyer's agent is influenced by a bonus I really would not want them to be my buyer's agent! See Agent bonus in Real Estate.

Hmmm if I get the seller (who I do not represent) the terms they want from my buyers (who I do represent) I get a nice bonus. This works well if you have no integrity!!

May 09, 2011 01:17 AM

Margaret Rome Baltimore 410-530-2400

HomeRome Realty 410-530-2400 - Pikesville, MD

Sell Your Home With Margaret Rome

I just suggested to a seller, who wanted to offer a bonus, to put it into fixing the house and reducing the price!

Margaret

May 09, 2011 01:42 AM

Loreena and Michael Yeo

3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX

Real Estate Agents

I think offering a bonus - as if it would sway the sale, is disrespectful on the seller and listing agent's part. Listing it at $3K, depending on the price point may make the home more appealing for an offer - if it appears to be $3K lower than the competition.

May 09, 2011 03:24 AM

Gail Robinson

William Raveis Real Estate - Southport, CT

CRS, GRI, e-PRO Fairfield County, CT

I haven't seen agent bonuses to work in my area. Much better to reduce the price, fix the house, or offer to pay buyer's closing costs (for starter homes).

May 09, 2011 03:38 AM

Lora "Leah" Stern 914-772-4528

Coldwell Banker, 170 N Main Street, New City NY 10956 - New City, NY

Real Estate Salesperson

A bonus has never been the driving force in determining which properties I wind up showing. I show the properties that work for my client.

May 09, 2011 10:25 AM

David O'Doherty

Clayton, NC

Clayton NC Homes, Raleigh, NC

Lenn, mmmmmmm are you sure?

Navona, If its not disclosed sure, here in NC you must disclose.

Kathryn, of course you would look silly taking clients to a house they were not looking for.

Gabe, Disclose Disclose Disclose

Martha, not sure I see the difference

Mike, free toaster with every fill up!

Jeff, solves all the issues if the buyer gets it, of course it would have to be in price reduction.

Bill, well said

Margaret, that makes perfect sense

Loreena, I'm not sure what you mean disrespectful, is it not the job of the listing agent to sell the house?

Gail, gotta pay closing costs

Lora, like I said to Kathryn, "I want to show you this house you can't afford, in the wrong neighborhood, with not enough bedrooms ......and I get a $3000 bonus!!

So that is the view of buyers agents, what about listing agents who represent the seller?

May 10, 2011 10:35 AM

Rainer
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David O'Doherty

Clayton NC Homes, Raleigh, NC

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