incentive vs. lowering price?

[Jack117]

Hi all. I have a listing, and the seller is wanting to move it pretty quickly.

I have a question: In your experiences, what has been the most successful in selling your listings; offering buyer agent bonuses, raising the buyer agent commission, or lowering the price of the house?....and why?

As a buyer agent, what would you prefer to see in the MLS listing--a bonus, or higher commission?.....and why?

Is there any specific verbiage to use in the contract that will allow the buyer agent to get all of the bonus monies (ie. avoiding the split, and taxes?)...I'm not trying to avoid Uncle Sam, I'm just trying to help a fellow agent out!

Thank you!

[TrophyHomes]

Just lower the price. All those incentives are nice but none of them beat a lower price.

[Justin Havre]

Lowering the price is the best as it will be the most appealing to buyers. Now offering an incentive like a Free Ferrari would be cool too.

I have done several deals where we have offered an incentive to the buyers agent. $10k bonus gets a few Realtors to work a little harder. In once case my client was selling one of his houses in a community where he lived and he actually received a flyer at his door by another realtor trying to sell his house that I had listed with a $10k bonus. This realtor was really trying and my client got to see that the bonus was working for him.

[jessiesc]

If you can do 'em all!

Lower the price to get buyer interest...

Raise the selling side commission to get the agents...

An incentive we are having good luck with is have the seller buy down points.

Good luck.

[docmuller]

If you have to choose always lower the pric, many buyers will choose the houses they want to see before they even speak to an agent.

I do not know of anyway to avoid a broker receiving their share of the split unless the bonus is in the form of a prize, like a plasma TV or something. Otherwise any money is considered part of the commission. In Ga you can't even offer a bonus to an individual agent, it must be phrased as a broker bonus

[Norcal Jim]

If you have to choose always lower the pric, many buyers will choose the houses they want to see before they even speak to an agent.

+1 in the age of the internet buyers are online looking all the time. Lower the price IMHO.

[Lewi]

In our market area we are seeing outside agencies doing limited service type listings with a minimal commission to the selling Broker. Unfortunately they have access to the MLS and we have to pay attention to who has the listing and what the rate is.

As a longtime Realtor I yearn for the old days were you pretty well knew what the commission was and never had to think twice about it. Unfortunately now we must pay attention. You simply can't continue to offer your services and be here the next time your client wants to make a move with what some are offering. If you have a competitive commission offered your best avenue to create more activity is without a doubt......Price!

[TrophyHomes]

One thing to keep in mind is builders can often offer a 20k upgrade incentive that only costs them 5-9k. Do you still think a 9k off the price is better then say 20k in upgrades?

[Lewi]

Lets see 20k in incentives vs 9k off the price???

That would depend upon the price and the buyer qualifications. If the buyer were taped out on price then the 20k wouldn't matter if they can't qualify for the higher sales price. With 9k off the price it might make the home a possibility for them and a closed transaction for all involved.

But... But.... if the Buyer does qualify then bring on the 20k.

[tsteuwer]

Lower the price for sure.