Is there such a thing as Commission Steering? - Mesa AZ home sales

Real Estate Agent with Call Realty / Access Appraisals

In real estate there is a term called "steering" which typically refers to leading potential buyers to particular homes or areas for various reasons. In some cases it's illegal.

I have noticed lately an intersting situation in relation to different homes for sale in the Mesa & Queen Creek area.  We have a lot of Short sale listings, some of which are pre-approved, bank owned & normal listings. Many of the short sale listings offer less commission to the buyers agent than do the bank owned & typical sale listings. Some of the bank owned even offer a commission bonus on top of the commission.

This situation appears to involve heavy traffic with multiple offers comming in very quickly at bank owned listings offering the bonus, while many times better priced short sale listings & other listings not offering the bonus go with little traffic. Somtimes the low traffic listings are bigger Sq Ft for similar prices or even lower & appear to be better deals than the other ones. So why do the buyers put in so many offers on these bonus listings?  I'm not accusing anyone of steering their clients to only show the bonus listings, I'm just asking the question, why is this happening.

Some buyers can't wait the extra time for a short sale to get approved, but is eveyone in that much of a hurry? Are buyers getting to see what the real values are before they make their decision, or just the ones they can close on quickly where their agent gets a mush bigger check? I don't know, but it is an intersting question.

I hope buyers are not being mistreated or "steered" to only the high commission listings.

Feel free to see all the active listings at  and call me if you would like to check out any of them. 

My main goal is to find the right house for my clients that they will be happy in. Also check out my seller & Buyer incentive plans.


Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

There may be some steering - but here is other considerations:

  • People do not want to put in an offer on a Short Sale as there is too much uncertainty.

  • People have a BBA and do not want to pay the comission themselves if the seller is not paying a full comission.

  • I had one buyer who felt if they were nickle and diming on the comission they would be hard to negotiate with on his end.

  • If an agent can only show so many homes, all things being equal, the agent will show the home paying the bigger comission - not just for himself but it indicates the seller is more cooperative. 

This may not be the case but they are some other legitimate factors.

Aug 15, 2011 07:41 AM