No, Putting the Text of the Bonus in Bold Doesn't Work!

By
Real Estate Agent with Keller Williams Capital Properties

Because the price is still too high!

Bethesda Real EstateI had a seller ask me recently to include a $5000 selling agent bonus on a very small home in Silver Spring.  After a week or so of no showings she asked me to put the text in bold so that agents could really see it.  Causing me to look like this:

 

  Bethesda Real Estate

 

 

Unfortunately, this is only one of the fallacies she believed rather than my advice, mostly because she looked like this...

 

 

Fallacy #1: Everything else in the county is more expensive so those who want the least expensive home will flock to her home.

  • Fact:  Can't say as I've ever even once had a buyer say to me, "take me right to the cheapest house in Montgomery County.  That's exactly where I want to live!"  Most pick an area and then find the house that suits their price range.  If they don't want to live in your area, cheapest house won't matter!

Fallacy #2: Every home will attract a buyer so if we just stay at this price a buyer will come to us eventually.

  • Fact:  Not every home will sell in this market.  Many will fail and do as evidenced by the high number of expired and withdrawn listings.

Fallacy #3: Put the bonus in bold so agents can see that they'll get paid more for selling this house.

  • Fact:  An agent needs a buyer interested in the property first.  When it's priced so high no one shows the property ever, the bonus ain't gonna cut it.  Agents aren't stupid.

Fallacy #4:  We don't just want some investor to buy our house for nothing.

  • Fact:  When your home is in an area of more than 50% foreclosures everyone's an investor.  You are chasing the market down week by week by week.  Those that are selling are getting waaaaaay under the active listings to sell.
  • Fact:  When an area is hit like this it will be years and years before the market comes back enough to make the money you wanted
  • Fact:  Your strategy allowed you to succeed in not giving your house away for nothing.  Unfortunately, you got nothing as a result.  Worth it?

She's a dear.   I like her... she likes me.  But I declined to continue working with her because those two faces above can't really live in harmony....

 

 

For more information about real estate sales in Bethesda, MD 20816 please email me at josette.skilling@longandfoster.com or visit my website at Bethesda Real Estate

All data courtesy of:
 Bethesda Real Estate
Long & Foster Real Estate, Inc.
4733 Bethesda Avenue
Bethesda, MD 20814
301-385-9213 (cell)
240-497-1700 (office)

  Bethesda Real Estate

Disclaimer: The opinions expressed by The Activerain Network and its members and those providing comments are theirs alone, and do not reflect the opinions of Josette Skilling or Long & Foster Real Estate, IncJosette Skilling and Long & Foster Real Estate, Inc. are not responsible for the accuracy nor the content provided by the community.

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If you are looking to buy or sell a home here or in one of the other lovely surrounding Bethesda real estate communities, please start your search by calling me, a Bethesda Realtor. 

Search here for all Bethesda homes for sale

 

Serving the Greater Bethesda real estate, Chevy Chase, Potomac, Kensington area communities and other surrounding areas.

I'm available to help you!

Josette Skilling

Associate Broker & Co-Founder

Urban Tree Properties, Keller Williams Capital Properties
7801 Woodmont Avenue
Bethesda, MD 20814
Cell: 301-385-9213
Office: 202-780-7570

Email: josette@urbantreeproperties.com
Urban Tree Properties

Copyright © 2015 by Josette Skilling

Bethesda Real Estate

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Show All Comments
Rainmaker
354,568
Melanie Ross
Coldwell Banker Solano Pacific - Benicia, CA
Benicia CA & Vallejo CA Real Estate, 707-319-2828
I really chuckled with this.  Loved the faces..more than the bold!
Dec 07, 2007 01:33 AM #47
Rainmaker
105,533
Josette Skilling
Keller Williams Capital Properties - Bethesda, MD
Melanie, it's funny because I had no intention of using those faces when I started, but it just struck me that the ridiculousness of it really went with those two silly faces...
Dec 07, 2007 01:40 AM #48
Rainer
37,637
Karl Burger
ERA Beach Ball Realty - Pensacola, FL
Pensacola Real Estate News

Good post. There was an interesting post recently on the ethical implications of offering agent bonuses. I agree that buyer incentives are a better way to go. I don't know about the bolding thing. I think an agent is going to see the word "Bonus" whereever it is buried in the listing. If not, he is not looking close enough at prospective homes for his buyers

My blog: Pensacola Real Estate News

Dec 07, 2007 05:43 AM #49
Rainmaker
105,533
Josette Skilling
Keller Williams Capital Properties - Bethesda, MD
Karl,  thanks for stopping by!
Dec 07, 2007 10:00 AM #50
Rainer
304,164
Cynthia Tilghman, Realtor® Onslow County NC Home Specialist
Kingsbridge Realty, Inc - Hubert, NC
Hi Josette,
Agent bonus says, we're desperate make a low ball offer and that's what happens most of the time.
Dec 07, 2007 12:45 PM #51
Rainmaker
105,533
Josette Skilling
Keller Williams Capital Properties - Bethesda, MD
Cynthia, causing my face to look like the above!!
Dec 07, 2007 12:47 PM #52
Rainer
96,751
New Jersey Real Estate James Boyer Morris, Essex & Union County NJ Realtor
RE/MAX Properties Unlimited, Real Estate - Morristown, NJ
exactly right.  The sellers need to set the price where reality is taken into consideration.
Dec 07, 2007 02:42 PM #53
Rainmaker
105,533
Josette Skilling
Keller Williams Capital Properties - Bethesda, MD
James, reality is still a bit difficult for some sellers.
Dec 07, 2007 02:58 PM #54
Rainer
59,603
Krista Fuchs
Prudential Fox & Roach - Exton, PA
Chester County Realtor - (484) 459-8025 - Home Buying and Selling
Congratulations on being able to walk away from the client.  I had a similar thing happen.  One of my listings needed new flooring and the sellers wanted to offer a 10K decorating bonus.  In my area, these don't tend to work because people just want to move right in without any work being done.  So we offered a 10K bonus, then they wanted me to take away the bonus and drop the price 20K, still nothing.  Meanwhile, new flooring cost 5K.  After no action at the price reduction, I finally convinced them to install new flooring.  Once the flooring was in it sold in a week.  Painful for them to learn but sometimes that's the way sellers have to do it. It was a new market for them too, they had only witnessed a sellers market so it was tough.
Dec 08, 2007 08:00 AM #55
Rainmaker
105,533
Josette Skilling
Keller Williams Capital Properties - Bethesda, MD

Krista, these are all painful lessons for people to understand.   I don't think decorating allowances work anywhere!  Folks just can't get past seeing ratty old flooring instead of the new and they always overestimate how much time and money it will take to get it done.  I'm telling sellers the same thing, just get the work done so you  have the chance at a sale.

Dec 08, 2007 08:20 AM #56
Rainmaker
126,591
David Dee
RMX REALTY - Alhambra, CA
Real Estate - San Gabriel Valley (L.A.) & N. Orang

Josette,

This is a great post! The faces are so funny! Sometimes it's best to move on as taking those listings can become a waste of time.

Dec 08, 2007 06:29 PM #57
Rainmaker
105,533
Josette Skilling
Keller Williams Capital Properties - Bethesda, MD
Dave, I think listings that won't ever move are too prevalent in this market.  If we could get rid of them stats would change significantly.
Dec 08, 2007 11:08 PM #58
Rainmaker
148,785
Tom Plant
WINEormous.com - Murrieta, CA
Josette - Educating clients can be exhausting, but it is our job. The market is certainly one where we can afford to turn down a listing if they're being unreasonable.
Dec 09, 2007 01:57 AM #59
Rainmaker
105,533
Josette Skilling
Keller Williams Capital Properties - Bethesda, MD
Tom, I agree and thinks it's really our responsibility to do so.  I didn't realize at first just how overpriced this home would be but the bigger problem was not adjusting at all to the market around them...
Dec 09, 2007 02:28 AM #60
Rainmaker
340,375
Judy Greenberg
Coldwell Banker Long Grove - Buffalo Grove, IL
Coldwell Banker - Buffalo Grove - Long Grove Homes

Great post- you're right on...  Lower the Price! 

Dec 11, 2007 11:32 PM #61
Rainmaker
105,533
Josette Skilling
Keller Williams Capital Properties - Bethesda, MD
Judy, thanks!  And we should make sure we BOLD that for sure!
Dec 12, 2007 12:30 AM #62
Rainmaker
413,435
Lisa Heindel
Crescent City Living LLC - New Orleans, LA
New Orleans Real Estate Broker
Josette, how did I miss this wonderful post?  Belated congrats on the feature....I never agree to offer a selling bonus.  If a seller is willing to part with that money, they should reduce the price, not try to dangle a carrot that most agents won't bite on anyway.
Dec 13, 2007 12:00 PM #63
Rainmaker
105,533
Josette Skilling
Keller Williams Capital Properties - Bethesda, MD
Lisa, so true!  I don't like the appearance of greed in any fashion.  Buyer incentives are much better for everyone!
Dec 13, 2007 12:26 PM #64
Rainmaker
318,235
Catherine Sinocruz
Coldwell Banker Select Real Estate - Reno, NV
Broker-Salesperson, ABR, GRI, CRS

Hi Josette,

Your post is so true. It all boils down to price and condition of the home. I would much rather see an incentive for my buyers.

Catherine

Dec 14, 2007 03:40 AM #65
Rainmaker
105,533
Josette Skilling
Keller Williams Capital Properties - Bethesda, MD
Catherine, I'm all for the incentives.  Anything else is, for me, a huge disincentive.  Get the price right!
Dec 14, 2007 04:23 AM #66
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