Buyer Agent Bonuses Are A Waste Of Time!

By
Real Estate Agent with Realtor®, GRI, Landis e2 Real Estate, LLC

  Offering a bonus to buyers agents is a waste of time and energy. A bonus will not determine whether the house meets a buyer's needs, it won't change the condition of the house, it won't change the location of the house and an agent bonus has nothing to do with whether a buyer chooses to offer on a given property.

  When working as a buyer's agent, my duty, loyalty and fiduciary responsibility are to the BUYER, not myself. This means that I'm looking out for my buyer's needs/wants/best interests, NOT whether a seller is offering to pay a bonus.

  I realize this may be a difficult concept, but I take my duties seriously. It's not ever about my needs, it's about the CLIENT, the one who's hired me to professionally represent them!!!

 When I see buyer agent bonus offers, I find it interesting because to me it shows:

 1. Sellers are motivated, they must want to sell pretty badly

2. That list price is apparently not very firm if they're willing to offer a bonus on top of the offered commission split

  What do I do when showing a house with an agent bonus offered? I tell my buyer clients and explain those key points about the apparent motivation and that the list price may not be very firm.

   If a house that my buyers are interested in happens to have a bonus offer, I'll tell the list agent I'm not interested in the bonus and my buyers can deduct any bonus amount from the list price when they consider placing an offer. After all, if a buyers agent bonus has been offered, that's lowered the net to the sellers so why not just have the buyers take it off the list price when putting together an offer?

  My bottom line is about finding a house that my buyers want to call home, no agent incentive will ever change or affect my client's needs and which house will be a good fit for them. I don't "sell" buyers on a particular house, I work with them to find them the most ideal house possible for the best possible price.

   It's about evaluating properties, price, condition, features and how those match buyer needs and desires, not about giving buyer's a sales pitch. Listening  to their needs and concerns while helping them evaluate properties, not trying to convince them they should fall in love with a particular house.

   Marketing a listing should be about getting a qualified, motivated buyer in the door and offering on a house that meets what they're looking for in a home. Agent bonuses won't ever change buyer needs, price range, or motivation and at the end of the day, it's about finding the right BUYER for the house.

   I assure you, if your listing seems to be a good match for my buyer clients, I'll show them the house. You really don't need to offer a bonus for me to help my clients find their next home, and if the sellers are motivated and willing to reduce their net, have them offer it to the buyers (closing cost credit, home warranty, list price reduction).  

  Maybe it's just my opinion but I think agent bonuses are among the least effective tools out there for sellers and list agents.

Copyright©2008 by Diane McDermott, All Rights Reserved, "Buyer Agent Bonuses Are A Waste Of Time!"

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  1. Tim Maitski 08/19/2008 01:28 PM
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Groups:
Charlotte NC Real Estate
North Carolina Real Estate
Tags:
charlotte nc seller advice
charlotte nc real estate
agent bonuses

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Rainer
3,266
Park Creek
Park Creek

Thanks for your comments. I know as a developer, we are always looking for better ways to get outside agents involved in our lot sales, and sometimes we forget who's righting the check in the end. We look forward to improving our sales techniques, and providing the best product at the best price to the client thereby eliminating the need for incentives.

August 27, 2008 02:14 PM
Rainmaker
645,151
Team Honeycutt
Allen Tate

I agree with you on this one!!! In the Normal Market that we are in now, it is very important to price homes correctly and aggresively to get them SOLD! If a seller can afford to offer a bonus then that number should come off the list price. The number one goal is to get the home sold for the best price and to do so quickly!

August 27, 2008 03:40 PM
Rainmaker
557,102
Diane McDermott
Charlotte NC Real Estate Market
Realtor®, GRI, Landis e2 Real Estate, LLC

Hi Carl, Thanks for stopping by! Quality product at a fair price that meets the buyers personal needs/wants/lifestyle is what it's all about. I know when I have buyers looking (or even considering) new homes it's still about finding the right fit in home and community for them, bonus offers won't change buyer needs and if a community/development seems to have potential for them, I'll show it to them.

Hi Team Honeycutt, I agree, if the seller can afford an agent bonus, they can afford to take it off the list price or give a concession to the buyer. When the bonus is added after a house has been listed for any amount of time, it won't retrieve the lost marketing time when the house was overpriced. Thanks for stopping by

August 27, 2008 04:13 PM
Rainer
41,791
Eugene Jones
Weichert Realtors

Hi Diane, great post. I often see listings with "buyer agent bonus" but never paid too much attention to the bonus. Like you said, it's up to the buyer which homes they'd like to see and eventually make an offer on. I think it's a great idea to flip the "buyer agent bonus" idea into an incentive for interested buyers. I think it shows buyers that you really care and that it's not all about getting a commission, but rather servicing their needs. Thanks!

August 29, 2008 01:18 PM
Rainmaker
557,102
Diane McDermott
Charlotte NC Real Estate Market
Realtor®, GRI, Landis e2 Real Estate, LLC

Hi Eugene,

So true, it's about the buyer's needs! Thanks for stopping by

August 30, 2008 12:54 PM
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Rainmaker
557,102

Diane McDermott

Charlotte NC Real Estate Market
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