In today's declining market, we are seeing more and more spiffs for Buyer's Brokers i.e.: $$$$ bonus over and above the regular commission, vacation trips to your choice destinations, etc.
Some people argue that it is unethical service to the buyer and it gets abused at times since Buyers in most cases are unaware of what their agent is getting paid on their purchase.
I agree that these offered bonuses are part of the commission and as such should be disclosed to the buyer, however things are never that simple. As we know, most of these "spiffs" are hidden in the Agent Remarks area and the buyers don't see them. I don't have a problem with the buyer knowing all that is involved in the transaction, but I think all needs to be done in good time. I have had buyers that specifically asked if the property I was showing them was offering me a bonus, and when asked why, they answered with the statement that their previous Realtor would only show them properties that offered something extra to him, the Realtor. (There is the abuse case for you!)
However, if the buyer thinks you're only showing them a particular property because you get paid more, they might lose interest and miss out on a great opportunity, just because they saw the line saying "$$$$ bonus to selling agent". I think it's best to show them the properties that you think are a good match for them and once they have selected one, at that point you can discuss the details as you write the contract. The bonus might or might not even be part of the deal at that time (you don't get a bonus in most cases unless you bring a full price offer.) It is also a good time to discuss what to do with it. If I am working with the buyer, I usually offer it to them to use for closing costs, and if I'm working with the seller, I let them keep it to cover their moving expenses!
So, in the end, I think disclosing it is the right thing to do, but no need to make a big issue out of it! Never forget that our main goal is the satisfaction of our customers! Show them properties that meet their criteria, not yours and if asked questions about your commission or bonuses on a specific property, tell the truth! Integrity means doing the right thing!
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