no.... it's a sign of desperation by the listing agent!!!!!

Better off pricing it correctly - incentive for the Buyer not the Buyer Agent

Maybe, maybe not. But a lower one might cause them to put the listing at the bottom of the pile. It's not right, but . . .

I agree with Michael Jacobs - usually it's a red flag to me that there is a fundamental flaw or the house is just overpriced.  

I say that it does. It would put a flag to the BA 'how about showing mine if it were between me & another listing'? 

There are 5 homes in an area all similar - which one do you show? They all meet your clients neees so ??? do you go off your preferences? Which one do you like better? Which one has the greatest colors?

Your personal preferences (bias) is in there but people just won't acknowledge it.

I can't speak for others(well, I could but no one would likely listen) but it's never worked to incentivize me.   In fact, I usually find these listings over-priced. 

Price and present the home properly.  Make it available for showings.  Forget the silly gimmicks.   

NO, it is a false contention as pricing the home correctly will attract more buyers 

My thought is it will attract more buyer's agents but eventually the buyer is the one making the final decision.  If the home doesn't show well and over priced buyer will not be interested anyway.  However, if there are many similar homes in the same area at the about the same price then it will make a difference.  

It does get attention, but other features, including price, have to be in line.

It would be smarter to dedicate that money to a price reduction.

Nathan,

It depends.  During an economic downturn, when office buildings we emptying out, we offered a higher split for the broker procuring a tenant.  It was done by all Class A buildings.  It worked very well in commercial real estate, and I have seen it work in residential also.  Again, the economy ruled.  At this point we are not in a bad economy.  A

Price it right. We don't look at the commission first, we look at the price, location and meeting the criteria of our clients!

You can offer more to a Buyer's Agent & it will get their attention if they read through the listing sheet but if the listing is overpriced it don't make a dam bit of a difference because the buyer has to be pleased. 

In the end what matters is the home is a good fit for the CLIENT / BUYER.

Correct pricing is more important.

It can work in some circumstances... especially when there is a LOT of inventory to show and limited time.  In general, though, I'd say not.

To be honest, when I was an agent, I rarely looked at the commission before showing... unless it was listed through a discount agency.

It might for some agents and it probably did more back when agents were the holders of the MLS book. But buyers see everything online nowadays and tell their agents what homes they want to see, so buyer agents aren't often choosing the homes to view anyway. I am not a fan of it myself. If the home works for the buyer we will see it regardless of commission. -Kasey

Tony and Suzanne Marriott, Associate Brokers has my agreement since they nailed it! 🔨😊👍

I have experimented with this question. Its the market more than commissions that make a difference. However, incentives & motivation should always be respected. Think: Win-Win

Maybe

It creates the impression that the home is over-priced. I've seen it work but it can attract agents who may be money voted and tempted to cross the lines of fiduciary duty.

I vote no.  If the seller agrees to pricing it correctly, it will sell.  As an agent, we show homes that fit a buyer's needs... not ones that inflate the wallet.  

When I see a Bonus to Selling Agent (Broker) I take notice that I can get my Buyer a better deal.  If the sellers are willing to put that out there they are giving their hand away or the listing agent is not telling them the truth.  

A fair and typical co-op commission depending on the area one works is all we can expect and I would never base the sale of a home to my buyer based on a commission.  

When I list a home I go over details of preparation, pricing the home and what is standard in the current maket and rarely does bonus or extra commission come into the discussion. 

I don't believe it does. I tell my clients not to offer a lower commission, however as that would reduce showings in my experience. I'd rather sellers take that extra percent and reduce their asking price.

Not really. Lowering price is better. But it does make a difference to some involved. Reduced seller net for one.

Better than those characters who cut it.

I've seen bonuses offered to a buyers agent if the house went under contract/sold by a certain date. Usually, it was a house that had an issue (overpriced or bad location) and, to my knowledge that "incentive" didn't work. Maybe it got more showings? I don't know.

*SHOULD* it, no.

*DOES* it, sometimes.

There are more than a few agents out here who look at that field first and prioritize showings based upon it.

Instead seller should lower the price.

I personally don't look at the bottom of the page to see how much commission so it wouldn't motivate me. I say lower the price.

Nathan Gesner When I first got into real estate this and agent bonuses were common practice to get agents to bring in their buyers. There was no such thing as a buyer's agent back then. Since, I believe this practice no longer works. Lower the price to bring in buyers.

Depends. 

It does.

Not for me! Price it right.

 It depends upon the market. 

It probably does motivate but it has never mattered to me.

I have found no matter how much you pay the buyer agent you don't attract a different breed of agent

For some it might make a difference. Actually the home has to meet the criteria for my client. 

We have tried that in the past and it never seemed to draw a buyer.

Depends. I just pass on a listing where a listing agent got 1% and a buyer agent ''regular'' 2.5%. Sellers ended with an agent who overpriced their home and no marketing at all.  3 price reductions later it has no offers. 

I'd say, do not focus on commissions you pay but on choosing the right experienced  listing agent who will sell your house fast and for the top $.

Nathan Gesner - smart 'seller'!

There is a group of agents that select the properties they will show based on compensation. For me I never look until later.

Seldom

Oh, I'm so with Lyn Sims on this - we don't want to admit it but, there are agents out there who DO look at this! Don't kid yourself if you think everyone is ethical like you - they're NOT!!

I doubt it. The better strategy is pricing is appropriately. I think it raises a red flag.

part of our market includes some low list prices, so it is not uncommon to offer a minimum commission to adequately compensate Buyer Agents.

I have personally been present when a buyers agent was inspired by such an opportunity. And before you all go BONKERS, you should know this agent offered this extra income would be used to offset costs the buyer faced. 

Now, there are many agents who bumble about in the darknesss unaware of the compensation offered. When they end up with two whole dollars they look for someone else to blame.

The bonus (not higher commission) offered the last month of the Babe Ruth House did bring an offer. Accepted and the seller was able to see their dream come true and crossed the finish line to secure their 10 acre horse farm. 

Desperate? If you think so, don't do it. But if an agent has sufficient vision, they can see a higher commission presents a tool the agent can use to benefit their client.  The listing agent is doing their job, the buyer agent needs to step up to the plate.

IN your situation, perhaps suggesting to less visionary agents how this 'bonus' could be used to motivate the buyer was needed. But, if the list price was not competitive or the higher price not substantiated,  bonuses and higher commission will not result in offers.

Some agents look for a edge to make more money so yes.

It usually does not in Denver.  Either the buyer wants the home or not.