Does Sweetening The Pot With Incentives By Sellers And Builders Really Sell Homes?

When I was selling new construction - builders were always trying to get us to come up with creative incentives. Honestly, when somebody finds a house that they love, in a neighborhood that they love - I don't think we need to dangle carrots in front of them. The stupid incentives didn't work then - and I don't think they work now. (Talking generalities here, I'm sure there's always somebody waiting or falling for a perceived bonus.) I would never sell buyers one house over another based on my commission - it's ugly and unethical.

It would have to be a real sweet carrot to reel me in on that alone.

Gary, I am such the fiduciary that I don't consider those things much. It does get my attention but I don't let it influnce my transaction.

I agree with Debb 100%, Gary.  It actually makes me laugh when I see a "$X,000 agent bonus if you close in one week!" note in the MLS.  I would never try to force my buyer into one property over another so I could get the extra bonus.  If they actually prefered the home with the bonus, that's obviously GREAT.... although I haven't had that one happen yet.  

I think the incentive, if any, should be directed only to the buyer and not the agent.. Just my humble O... I think buyer like incentives like more hardwood or granite or appliances.. and not other types of incentives.. Of course, as you point out, location, school etc. still matter too!

I don't see too many of these sweets offered here.  They may grab attention... but they wouldn't change the outcome of a deal!  Kathy

I don't believe that incentives make people buy homes, but they may make people buy YOUR home.

You can't convince me that if there are two homes that meet the client's search criteria...and one has additional buyer's incentives and an agent bonus...that this fact doesn't factor on the decision by both the client and the agent.

i don't know, GAry, I DiD jump  a little fster When a seller ofFered to PaY a $20,000 bonuS, o 

Gary-When it comes to comparing the final two or three houses, and they are close, it's been my observation that an incentive can be the piece that closes the deal. Incentives don't make a Buyer buy, but they can influence the decision.

If the Showing/Selling Agent has a number of similar properties to choose from, and one property has a large Bonus or a larger commission - that property WILL get put on the Showing List.

 As for Buyer Incentives?  The Price is what matters.  

Not really; they may be icing on the cake but they are not the cake.

I haven't seen agents create much success using incentives lately.  It seems this worked a lot better maybe a few years ago.  Buyers want price reductions, not trinkets or baubles.

I'm asked that question each week by a seller or other agents.  I generally say if a home is priced positioned well (no matter the issue or condition) then it will sell.  Price cures all.  I really don't let a bonus to the agent influence if I show the home or not and generally negotiate it out for my client's benefit.  The home has to fit a client and if they like it they will buy, incentive or not.  You can create your own incentive with closing cost assistance from the seller or lender.  Not sure that type of fishing really reaps the benefit any more favorable.  Others I know are firm believers in this strategy or extra agent/buyer incentives.

I don't believe it's the "stuff" that sells homes to 95% of buyers.  Granted there will always be the buyer whether it's a car, home or business suit that want that screaming deal along with all the supposed freebies that the seller s willing to throw in.  I for one think all of the incentives dilute the value we are providing and continue to give buyers the impression that everything is for sale within our industry...including our integrity.