What's your take on seller's offering bonuses? Either to the selling agent OR to the buyer in the form of closing cost assistance or points to lower the interest rate on the buyer's mortgage?
Are they effective in enticing agents to show the property or getting buyer's to get off the fence and make the offer?
For the selling agents, are you more motivated by the $xxx dollars to buyer's agent if contract received by December 31st OR are you more motivated if they straight forward offer out a higher commission?
How about your buyers? My experience has been that ultimately bonuses to the buyer only stick if the net amount is what the seller wanted. If not, they get negotiated out of the final price. Having said that, I have had buyers make the offer when they think the deal is going to expire and they might miss an opportunity.
Is this market calling for more of these promotional type bonuses?
JoAnna
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JoAnna Siminerio
Weichert Realtors - Marlboro / Manalapan
732-598-6823 cell 732-536-4400 x116 (office)
JoAnna@JoTheRealtor.com
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Joanna,
Right. It is a NET game.
And this fall, in NC, law went into effect that we have to disclose "additional compensation" to the agent to our clients before they are in the decision-making phase. Like prior to showing...
Personally, I think it is in conflict with putting the client first. An agent has the duty to show all properties that meet the client's criteria bonus or not! So, in our company any bonus goes to the buyer! The contract is between the seller and the buyer so the incentive should be addressed to the buyer not the buyer's agent.
I think all incentives should be passed to the BUYERS in the form of reduced price or closing costs or buying down the interest rate
I think all incentives should be passed to the BUYERS in the form of reduced price or closing costs or buying down the interest rate
I personally absolutely agree that the incentives should be passed to the BUYERS. But that wasn't the question at the heart of my post.
I'm interested in collecting responses, based on the experience of this forum, do bonuses work? Whether for the seller or the buyer.
Some sellers are resistent to lower the price. They know they should, they just dont want to commit. With this seller, sometimes putting out a bonus, with a deadline, is a way for them to feel like they are acting proactively. This sometimes softens them a bit more to the inevitable price reduction. I'd like a little ammunition from the group here as to whether these types of bonuses work
I love when the bonus goes to the buyer, as for going to me, I see too many agents on the hunt for the bonus instead of for their client. (19-1)
I agree Todd!
As the seller's agent I'm looking to get my listings sold!! If I can use greed as a tool, I'm not beyond that!
I like buyers bonuses Jo, because it may "incentifize" them to give a listing a real consideration (if it comes down to one listing to purchase vs. another option).
Update...
Got a price reduction... teensy weensy, but it is movement!
Got the commission we are offering to buyers agent raised!
Got a bonus! - Seller will pay 1 point to buy down interest rate on buyer's mortgage - for qualified buyers with a minimum of 20% down. A great home AND a great interest rate why wait?
Got the seller to agree to take care of some home improvements
Let's see if any of that gets us some action!