Will a Selling Bonus Help Sell the Home Faster?

By
Real Estate Agent with Berkshire Hathaway HomeServices PenFed Realty, 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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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Roy Kelley 03/11/2013 09:56 AM
Topic:
Home Selling
Location:
Tennessee Montgomery County Clarksville
Groups:
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Ambassador
812,869
Debb Janes
The Carl Group, LLC - Camas, WA
REALTOR®, EcoBroker Camas, Washington

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. 

Mar 08, 2013 10:50 AM #3
Rainmaker
1,002,609
Will Hamm
Hamm Homes - Centennial, CO

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

Mar 08, 2013 10:51 AM #4
Rainmaker
1,133,946
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
PasadenaCA Real Estate Representation 818.516.4393

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.    

Mar 08, 2013 11:03 AM #5
Rainmaker
281,010
Nina Rogoff
RE/MAX Executive Realty - Sharon, MA
Your Hometown Realtor in Sharon MA

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.

Mar 08, 2013 11:15 AM #6
Rainmaker
553,971
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

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!

Mar 08, 2013 11:20 AM #7
Rainmaker
421,982
Jean Hanley
Coldwell Banker Kivett Teeters - Hemet, CA
Specializing in Folks Who Want To Buy/Sell Homes

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. 

Mar 08, 2013 11:32 AM #8
Rainmaker
293,283
Mark Horan
Resident Team Realty, LLC & Toni's Property Management LLC - Saint Cloud, FL
"The Resident Chef" - Resident Team Realty 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.

Mar 08, 2013 12:41 PM #9
Rainmaker
1,591,045
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

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"?

Mar 08, 2013 02:19 PM #10
Rainmaker
483,717
Bob Ratliff, Broker Associate - REALTOR® 512-587-5689
RE/MAX Capital City ~ Call Bob ~512-587-5689 Austin TX - REALTOR® CRS GRI - Cedar Park, TX
Your Cedar Park & Leander, REALTOR® CRS GRI

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. 

Mar 08, 2013 02:37 PM #11
Rainmaker
982,600
Wayne Martin
Michael Saunders & Company - Sarasota, FL
Sales Manager - New Homes & Condominiums Division

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!

Mar 08, 2013 02:51 PM #12
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839,786
Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

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

Mar 08, 2013 03:06 PM #13
Rainer
408,559
Gary Coles
Venture Realty International - Las Vegas, NV
Latin America Real Estate

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.

Mar 08, 2013 03:09 PM #14
Rainmaker
113,775
Liz Hill
Keller Williams Experience Realty Brokerage - Barrie, ON

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.

Mar 08, 2013 04:30 PM #15
Rainmaker
1,161,140
Kevin B. Tolbert PA Team
Keller Williams Realty of Port Saint Lucie - Saint Lucie West, FL
New Home Construction and Luxury Specialist!

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. 

Mar 08, 2013 05:28 PM #16
Ambassador
1,351,506
Silvia Dukes PA, REALTOR
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living
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.
Mar 08, 2013 06:24 PM #17
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...

Mar 08, 2013 07:30 PM #18
Rainmaker
576,655
Hella Mitschke Rothwell
(808) 226-1095 or (831) 626-4000
Hawaii & California Real Estate Broker

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).

Mar 08, 2013 07:41 PM #19
Ambassador
1,243,221
Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional, 931-920-6730 - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

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.

Mar 08, 2013 09:07 PM #20
Ambassador
1,115,670
Bob Crane
Woodland Management Service - Stevens Point, WI
Forestland Experts! 715-204-9663

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.

Mar 08, 2013 11:04 PM #21
Rainmaker
2,161,948
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

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

Mar 09, 2013 08:04 AM #22
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