Does it work? Should I offer a bonus to sell my home? Everybody wants to sell their home for top dollar and to sell their home quickly. So would a small bonus to a real estate agent entice them to sell your home for you quicker. Or would offering a bonus to the home buyer work better. Let's talk about these questions in depth.
First of all a buyers agent owes his loyalty to their buyer. They are supposed to be working in the best interest of the buyer. So offering a bonus to a buyers agent really doesn't sway them to buy your home. They will take the bonus if their buyer buys the home, but the agent is going to show your home any way about it if the house is what their buyer wants. So when home sellers ask me "Will offering a bonus to real estate agents sell my home faster? My answer to them is "No".
The first problem is basically is that it would have to be a substantial bonus to the real estate agent to sway them. So no a $500 or $1000 bonus is not going to do anything to sell your home to an ethical buyers agent. It doesn't matter whether it is in Metro Detroit home for sale in a subdivision or a lakefront home for sale in Oakland County MI. When I say substantial, it would have to be about double what the commission is now."
As a buyer's agent I am working for the buyer in their best interests. Not to line my pockets. There is the problem. It's not about my choice. It's about what the buyer likes and wants. Their needs and wants are totally different than mine. What one buyer likes the next buyer may hate. Everybody is different. Real estate sales shouldn't be about selling. It's about the buyer choosing the right home, not pressuring them to buy because somebody is offering me a thousand dollars more to have my client buy their house instead of the one down the street. Which is the home that the buyer wants, and likes?
In my opinion you want to offer the bonus to the home buyer. Offer them something substantial. You also have to be careful of the banking rules and government's laws. Any bonus will have to show up on the final statement. Only if it is a cash deal will it not matter. Sometimes you can offer a credit. A credit towards new carpet, new cabinets, or closing costs.
Remember when you offer a bonus it doesn't stop the buyer from asking for more. Offering a bonus is a tricky business. It has to be done right to pass the scrutiny of the bank's underwriters and the laws of our government.
Bottom line is: No you shouldn't offer a bonus to the real estate agent. You should offer the bonus to the home buyer. It will be more effective that way.
If you have more questions about selling your home in Metro Detroit or selling your lakefront home in Southeastern Michigan give me a call at 248-310-6239. I helped many home buyers get their home sold for top dollar and quickly.