Will a Selling Bonus Help Sell the Home Faster?

By
Real Estate Agent with Prudential PenFed Realty, "The Real Debbie Reynolds" Your Clarksville Real Estate Professional, 931-920-6730 TN Broker: 208698

Will a Selling Bonus Help Sell the Home Faster?

Sellers pay commissions to agents to sell their homes. Some sellers ask, Will a selling bonus help sell the home faster?Selling your home


I had one of my listings sell that had a $2500 selling bonus awarded to the selling company for any accepted contract. It was on a new home that had been on the market a  little too long. The builder and I discussed that it needed more attention and offering some extra financial incentive might help drive agents to want to show and sell it. He agreed to give it a try. So an email blast was sent to all agents in our area MLS. The bonus was clearly stated on the listing in MLS under compensation and with an remark in the Realtors Remarks. I spread the word personally with some of my network agents.

Showings seemed to increase which was good. Was it just the market spiking or was it financial motivation? I really don’t know. An offer came in and terms were agreed. When finalizing up the contract I told the agent congratulations on the bonus. She had not realized it nor had she noticed it on the listing. She was just trying to match the listings she showed to her clients needs. She responded that it was a nice surprise.

Will the Selling Bonus Help Sell the Home Faster?

Maybe, maybe not. Not all agents select the homes they show their buyers by the compensation being paid. In fact many don’t notice it until a little later in the process. Others check the compensation and formulate their showing list based on what they will earn. That is just a fact of the business.

So is the bonus doing what it should?

My take is if it gives one more reason to contact a bulk of agents to let them know about the presence of a good listing then it is worth it. If one agent, and that one agent alone is motivated by the extra earnings and produces an offer, it is worth it.


If it creates any type of buzz and makes agents spread the word, it is worth it.

I think it creates new opportunities for contact and conversation and that alone may help the home sell faster. So in some situations if done properly with the proper marketing, it can produce favorable results.

If you have a home to sell in Clarksville TN, you need an agent that knows how to spread the word and get it sold. Contact Debbie Reynolds at 931-320-6730.



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Want To Know What Debbie Has to Say? 

If you are needing Real Estate services in Clarksville TN it would be my pleasure to assist you!

 

.


"The Real Debbie Reynolds" at
BuyorSellClarksville.com

Prudential PenFed Realty, 2503 Wilma Rudolph Blvd., Clarksville, TN 37040

An independently owned and operated member of BRER Affiliated, Inc.

Not affiliated with Prudential. Prudential watermarks used under license.

931-920-6730 (office)   931-320-6730 (cell)

                 

 

 

 

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  1. Roy Kelley 03/11/2013 09:56 AM
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Ambassador
706,629
Debb Janes
REALTOR®, EcoBroker Camas, Washington
The Carl Group, LLC

I sold a house last year that had a bonus attached, I too was unaware of it until after the contract was submitted to the builder's agent. She also told me about the promotion. It wouldn't make me show a house, over another - in fact, I pay no attention to commission fees until we get close to closing. It's not the reason I do what I do - although, the money is a good thing. 

March 08, 2013 10:50 AM
Rainmaker
842,882
Will Hamm
Where There's a Will, There's a WAY!
Hamm Homes

Hello Debbie,  interesting, we have a $790000 home and not getting many showing, will have to think about this.  Thanks

March 08, 2013 10:51 AM
Rainmaker
972,672
Michael Jacobs
Pasadena Real Estate Representation 818.516.4393
Coldwell Banker Residential Brokerage

Hi Debbie -- this is always a thought-provoking conversation --- when I do notice a bonus associated with a property -- my immediate thought is "gimmick - why not just lower the price?".  Have there been success stories -- sure but I'm not a strong proponent of the selling bonus -- there are other avenues I suggest that will help the home get more showings and the ultimate goal -- an accepted offer.   Of course, I have yet to turn down a bonus when it is part of a transaction.    

March 08, 2013 11:03 AM
Rainer
263,980
Nina Rogoff
Your Hometown Realtor in Sharon MA
RE/MAX Executive Realty -

Hi, Debbie...I agree. Letting people know that there is a selling bonus is a great way to stir up some action. That's why I try to explain to sellers that it's not a good idea to give the cooperating agent less than is typically found in a particular market. Some agents just won't put the house on their show list, unless a buyer requests it.

March 08, 2013 11:15 AM
Rainmaker
445,439
Beth Atalay
Cam Realty of Clermont FL
Cam Realty and Property Management

Debbie, Honestly, I don't look at the commission when showing homes to my buyers but I'm realistic, I know some do! When the listing is not getting the activity, you have to try anything and everything within reason and law to generate interest. Offering Bonus might just do it! I've seen cruises being offered, tickets to theme parks, spa treatments and of course good ole $$$ works best!

March 08, 2013 11:20 AM
Rainmaker
421,547
Jean Hanley
Specializing in Folks Who Want To Buy/Sell Homes
Coldwell Banker Kivett Teeters

You know, I DO look at the commission to the selling office when showing properties.  I DO NOT rule out lower coomssions when showing homes to my clients, because I have a duty to show them everything on the market, however, it IS nice when a seller gives an incentive to sell. 

March 08, 2013 11:32 AM
Rainmaker
277,918
Mark Horan
"The Resident Chef" - Resident Team Realty LLC &
Resident Team Realty, LLC & Toni's Property Management LLC

Debbie, The motivation in todays market is to just get the buyer a home. Then move on to the next buyer, I sometimes think I would pay the listing agent if I could just find a home for my buyers and they are happy and move on.

March 08, 2013 12:41 PM
Rainmaker
1,390,607
Roger D. Mucci
Lets shake things up at your home today!
Shaken...with a Twist 216.633.2092

Money has never motivated me..........but that's another story.  When I was in real estate, a "selling bonus" wouldn't get me there with a client unless it was something they were truly interested in..........the clients best interest should always be the #1 priority, not what goes in your pocket at the end of the day.  I guess if something pays a lower commission for some reason, some agents wouldn't show it?  Hmmmmmm........what if it's exactly what their client is looking for?  Is no "bucks" better than "less bucks"?

March 08, 2013 02:19 PM
Rainmaker
343,211
Bob Ratliff
Your Cedar Park Real Estate Consultant, REALTOR®
RE/MAX Capital City ~ Call Bob ~512-587-5689 Austin TX - REALTOR®

Debbie, I don't think bonuses for agents really make that much difference but of course when our Buyer likes a home that the seller is offering a bonus's to the agent... yes we get motivated.

I personally think if the Seller is going to give a bonus it should be toward the Buyers closing cost etc then again why not just lower the price. 

March 08, 2013 02:37 PM
Rainmaker
853,891
Wayne Martin
Sales Manager - New Homes & Condominiums Division
Michael Saunders & Company

Debbie, condition and making sure the listing fits the buyer's needs are the primary priorities. The "bonus" is the cherry on the whipping cream. Enjoy your day!

March 08, 2013 02:51 PM
Ambassador
832,303
Connie Harvey
Realtor - Nashville TN Real Estate
Pilkerton Realtors

Debbie, personally I've never shown a house because of a bonus. But I know plenty of agents who have.

March 08, 2013 03:06 PM
Rainmaker
408,443
Gary Coles
Latin America Real Estate
Venture Realty International

Debbie, I think that a bonus or increased commission can help.  Of course the condition and cleanliness of the  home are paramount.  I would like to add that many agents skim through lists of properties with either larger selling commissions or bonuses and then remember these properties when the typical listing is forgotten. They also go on to mention these listings to friends and other agents that they know. This heightened awareness is always nice.

March 08, 2013 03:09 PM
Rainmaker
108,473
Liz Hill
Keller Williams Experience Realty Brokerage

Interesting question and even more interesting responses. I think it will make a difference, but as you say it gives you a great reason to promote the property.

March 08, 2013 04:30 PM
Rainmaker
967,213
Kevin B. Tolbert PA Team
New Home Construction and Luxury Specialist!
Keller Williams Realty of Port Saint Lucie

Bonus?  Naaa, just the right realtor with the right marketing program and you have a successful sale.

Like I always say, any agent can list a home, but only certain agents actually can SELL THE HOME. 

We have one firm locally that boasts they have 69% of the listings in a neighborhood, but our office had 90% of the sales in the neighborhood. 

What is more important?  The listing or the CLOSING. 

March 08, 2013 05:28 PM
Ambassador
1,263,284
Silvia Dukes PA, REALTOR
Florida Waterfront and Country Club Living
Tropic Shores Realty - Ich spreche Deutsch!
Debbie, I think the bonus might help to draw more attention to the listing but in the end it is the buyer who has to like and buy the house. If they don't, no bonus in the world would work.
March 08, 2013 06:24 PM
Anonymous #18
Anonymous
Anonymous

Curious on your thoughts on extra commission versus throwing in builder's extras.  Will a $2,500 commission or a MONSTER $2,500 TV for the buyer drive the behavior.  Or other upgrades...

March 08, 2013 07:30 PM
Rainmaker
568,097
Hella Mitschke Rothwell
Hawaii & California Real Estate Broker
(808) 226-1095 or (831) 626-4000

Debbie: I've always felt funny about getting offered an extra bonus. But you mention it was a NEW home that had gotten a little stale on the market. You did not say it was overpriced. In this case, it sounds like it might have resurrected the interest of the agents again to show it. But their buyer would still have needed to like it enough to buy it. We had an agent here several years ago who would make the bonus commission based on a full priced offer! That, I always thought, was VERY problematic (to be kind).

March 08, 2013 07:41 PM
Ambassador
985,900
Debbie Reynolds
Your Dedicated Clarksville TN Real Estate Agent
Prudential PenFed Realty, "The Real Debbie Reynolds" Your Clarksville Real Estate Professional, 931-920-6730

Hi Everyone,

Thanks so much for all the insight and opinions about this subject. I am not a big fan of bonuses but occasionally I think it pays to change things up. In a new subdivision, cutting the sales price will affect appraised values of the future houses especially in our VA loan market so it is important to hold tight on the prices.

I have also sold some houses that had selling bonuses and appreciated the extra perk but it was not the motivation to show the property. I am motivated to show what will please my client. In the end I want the house to be what they want and the money will work out for me.

March 08, 2013 09:07 PM
Ambassador
896,385
Bob Crane
Forestland Experts! 715-204-9663
Woodland Management Service

Great posting Debbie, I have offered a bonus from time to time on my listings, not sure if it helped or not, but I am always a little disappointed in other investors who think that they are making money by bullying their agents into a lower commission.  It makes me wonder how motivated their agent and the other agents on the mls are to show these homes.

March 08, 2013 11:04 PM
Rainmaker
1,884,777
Roy Kelley
Roy and Dolores Kelley Photographs
Retired Real Estate Broker, Maryland Blogger

A selling bonus can be a very effective strategy.  However, a bonus will not usually help if the basic value is not offered.  

March 09, 2013 08:04 AM
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