How Ethical Is A Realtor’s Bonus?

Ok, before I make some REALTORS®  upset, hear me out first. I believe bonuses can be ethical (somewhat)… under one principal: that the seller is fully paying for it and not using it as a negotiating tool to threaten the buyers agent. Let me give you an example:

A few weeks ago I was working with some clients who were really committed to buying a new home. We  found a house that had just been built by a certian builder and my clients wanted to put an offer in. When I called the Sales Manager to discuss the offer, she said that there was a $4,500 BTSA (bonus to seller’s agent) that would go straight to me if I could get them to go up on the price. She made it clear that I would lose the bonus if my clients would not offer more. I told her that I was not making my clients pay for an undisclosed BTSA and she seemed stunned. I guess that she hadn’t had anyone turn it down yet.

This seemed unethical to me and I felt really weird about it. I am suppose to be representing the best interests of my clients and now I am being challenged to represent the best interests of my own bank account. It was honestly hard to turn it down right at first, but it just didn’t feel right. If I was in my clients place, I would be upset if I ever learned that my agent talked me into paying more for a house so that he could get an extra bonus, on top of his regular 3% commission. How would you feel in their shoes?

I do believe that bonuses are fair game when treated right. If a seller wants to offer a BTSA on their listing to attract agents attention, I think it is very smart marketing. I also think the buyer's agent  needs to disclose the bonus to their clients. If the seller is going to negotiate the buyer's offer by threatening to take the bonus away from the agent, then I believe that it is moving towards an unethical business practice. I know that some states do not allow BTSA's because of the possible unethical practices that it can cause. In Houston, TX, it's fair game! Any thoughts?