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Just don't get it

By
Real Estate Agent with Re/Max Boone Realty

I just don't get it. We have more than 600 + realtors in town.  I know many of you have thousands of more, but in a town when three or four years ago we only had 300 + that is amazing.  I can't tell you the number of people who have "ethical" issues so I sort of feel that I have a calling even though I didn't know it when I entered this industry.

A recent ethical delima came up with bonuses offered to agents.  In the state of Missouri, you enter into a buyers agency for a certain percentage.  That document authorizes you to get paid from the seller, however, if the seller were to offer a bonus for bringing a buyer, you are ethically and legally required to notify the buyer of such so that you can collect the bonus.  What ever is offered above the buyers agency agreement. 

Now why would a buyer authorize you to accept 3% plus 5-10 thousand more for a contract?  Question, is it in your best interest or your buyers.  In the end, you must ask if this is in your buyers best interest. 

 

Whatever is best for you buyers in sellers will be best for you in the long run.  Focus on the end run.  Not the immediate gradification!!

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Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production
Hello April.....nice post...it really has to be a win win for everybody.
Oct 24, 2007 04:12 PM
Joe Zapata
Keller Williams Realty Media World - Burbank, CA
Your Burbank Real Estate Expert

April - great topic and one I hope you get a good response to.  I think that bonuses are junk.  take the price off the property and get it sold for the regular comission.  I do not hold bias on showings based on bonuses or split %.  I show them based on individual client needs.  So long as they get the home that they want I am ok with it.

Oct 24, 2007 04:13 PM
April Ferrao
Re/Max Boone Realty - Columbia, MO

Joe,

 

My thoughts exactly.  It's about the client.  I mean what are we in the business for.  To help people find the home to meet their needs.  I don't look at the commission, bonus, etc.  I'm just happy to find the home for them.

Oct 24, 2007 04:27 PM
Eric Bouler
Gardner Realtors, Licensed in La. - New Orleans, LA
Listening to your Needs
I would love to get 3% on half my tranactions. I do look at the commission. When I see the 1.5% commissions I don't get too eager to sell that home. Just being honest. Most of the times those homes just happen to be overpriced as well.
Oct 24, 2007 04:36 PM
Ann Heitland
Retired from RE/MAX Peak Properties - Flagstaff, AZ
Retired from Flagstaff Real Estate Sales
Welcome to Active Rain! And what  a great post. We have 600 agents in our MLS too, but that number has been pretty stable for several years -- though the individuals have not -- it's a revolving door and most have no clue, making it hard on those of us who do! The bonus to the buyer agent must certainly be disclosed to the buyer, which should make it moot. Why not offer an incentive directly to the buyer.
Oct 24, 2007 04:42 PM
April Ferrao
Re/Max Boone Realty - Columbia, MO

To Eric in New Orlleans,

 

I can understand you not getting excited about 1.5%.  The lowest I have ever noticed is 2.5% here.  But I know a host of agent that won't show a listing that is 2.5% when they could get 3% on another listing.  Isn't it all about the client in then end?  It may just be me, but I feel, or I know that they pay off either from that client or another is down the road.  Perhaps I am nieve?  But I hope not?

Oct 24, 2007 04:51 PM
April Ferrao
Re/Max Boone Realty - Columbia, MO

Ann in Flagstaff--

 

Right why not offer the incentive directly to the buyer.  I mean if they can only go to 260k and there is a 10k bonus... Why should they finance the extra 10K bonus.  You get a sale plus endless referrals.  It's a win win.

Oct 24, 2007 04:56 PM
ARDELL DellaLoggia
Better Properties Seattle - Kirkland, WA
I'm seeing many falling out now, especially when it is time to pay mls dues or renew their license.
Oct 24, 2007 05:10 PM
Nancy Brenner
Referral Associates of Georgia, Inc. - Roswell, GA
Roswell Georgia Real Estate Agent

As others have said, IT IS all about the client. 

Why would you give up a 2.5% commission?  Isn't it better than no sale / no commission????

Oct 24, 2007 06:09 PM