How do brokerages typically handle agent bonuses from clients? Do you distribute them at 100% to the agent or do you split them according to your commission policy?

100% to the agent is how we do it. To many brokers get greedy.

If you are with a traditional company, probably at the split, with a 100% company probably all yours. (check individual company policy)

I concur wholeheartedly.

I dont think because a Broker takes a cut they are bring greedy. It really depends on what the agreement is and compensation plan.

My broker gives us 100% of the bonuses. I think that is fair because when the bonus is something other than money (trip, gift card, etc) the broker can't/doesn't take a split of that.

Once my office is up and running, I will be giving 100% of all bonuses to the agent.

R

In my area the typical wording for offering a bonus specifies "for the exclusive benefit of the selling agent". Having said that I am having some feedback from agents at the brokerage where I was before going on my own that the current management is taking 8% off before distribuiting the bonus. I hope someone will stand up to that and make them honor the terms of the bonus offer!

Whenever I open my own brokerage, bonuses will be all the agent's. I cannot see any other way as fair. It would be like giving a Christmas bonus, then taking half back...

Sometims companies require a franchise fee on all GCI (ie, Prudential, RE/MAX, etc). That is generally the only amount that should be taken out of 'bonuses'.

my company i one i own, we split everything according to there split. But i as the owner dont keep any money neither and i am on the same split as they are. Every thing that the company makes goes back in to advertising to supply the leads that we produce. If i am not selling i am not making any money.

I would allow the agents to keep the bonuses. I feel that the agent worked hard and has earned those bonuses that usually come few and far between in my area, they feel inspired to work harder, they feel better knowing that I'm a fair and generous broker and won't be tempted to go elsewhere, and it keeps the morale high in the office.

I have had brokers take my bonuses and it really upset me. The broker deserves the commission split as agreed but I felt I deserved that bonus.

I know once I decide to hire agents I'm going to have some hard decisions to make about commissions and what is fair to all but I definately don't want to be considered greedy....

My agents get 100% of the bonus they earned.

Sellling bonuses are treated like commission; they always appear on the HUD. So, the commission is paid to the broker, who pays them to the agent according to the agreement they have.
This is how it is done where I am now and where I was previously (I switched firms this summer.)

If the broker gives all of the bonus to the agent what happens if the commission is 0 and the rest is a bonus. With this slow market be prepared for some strange happenings.

i thought about doing that. but decided against it due to the fact that it would draw to much negative attention and could give me a bad name. but agents expecially low split agents would love to make that 100% cut!

300,000 property

co-op 0%
agent bonus 9,000.00 Dollars


brokers would hate me and i dont want that. but i could see someone doing it.

the fastest house i have ever sold was a house that had a 2.5 co-op and a 1k agent bonus. i told the agent to make sure there was an adendum to the offer to purchase that stated listing agent to pay 1k bonus to the selling agent. i told the agent to make sure to do that because i do not want anyone thinking that i would try and get out of paying and if it were in writing there is no confusion on anyones part(i know a lot of agents have had bad experience collecting a bonus). i make sure to make it easy on them and assure them through the contract that they will get their money. i also make sure that the title company has it on the hud 1.. the last thing i want is to have someone think that i went back on my word.

the agent and i have kept in touch (very smooth deal) and she now offers a bonus on properties. for me to offer a bonus out of my commission the seller has to agree to make certain repairs and agree to certain terms that help me and make me feel that their property is going to be more saleable. it is just as much a way to get the seller to do what you say when you say with no questions asked because i am paying money out of my pocket to get results.

the only rule that i state is that for the bonus to be paid to the selling agent there must be an offer within the first 60 dom.

when people put all kinds of stipulations on the bonus it makes it crappy. for instance if you state that there is a bonus on a full price offer you are IMO putting hte agent in a bad spot if their client wanted to put a full price offer.

i also notice that i have had great results getting the selling agnet to co-operate because they realize that i am paying the bonus to them.

the last property that i put a bonus on sold in 8 days(negotiations started on day 2 it was not ratified until day 8). the agent was on a 60/40 split so they absolutley loved it.