Hi all,

I have relocation clients who are putting their home on the market this weekend. They want a quick close--he's been transferred, and they need to move as quickly as possible.

They're thinking about offering a bonus for a quick sale. They asked my opinion, but I've never done this, so I don't know what to tell them.

A--Is it a good idea?

B--What would be an appropriate amount? Based on the price range we're shopping in, I think their current house is in the $350,000 to $400,000 range.

Thanks for any/all help!

Tell them they should offer a point or two.(if you get two, keep one for yourself for your ingenuity)
Make it contingent upon agreeing to an acceptable offer on or before a certain date.

I usually suggest a higher commission rate when clients want to offer a bonus; that way I get some of the money which inspires me.

One thing I've found pretty effective especially with listings that show great is to have any broker open house during the week around lunch time and serve food.

It's a great way to get other brokers into your listing so they can see how nice it is and it makes them remember it much better when they have a potential buyer.

I wouldn't be more likely to show a property just because there is a bonus involved. I think a benefit to the buyer might work better. Maybe offer a free vacation for the buyer.

And advertise it (the home & vacation or other bonus) like crazy.

I guess some commission sales people are not motivated by a little extra cash.

You can offer to the agent if you want, but I'll try and get my client in the best home for them- that's my job. A bonus for me doesn't mean the house is a better fit for my client. I have a responsibility to my customer.

For the cost vs benefit to the seller... your best bet is always a Bonus to the Selling Agent.

A point is a good place to consider but depending on value, if very high it could be lower. $3,000 and up seem to attract large numbers of showing in my area.

For the same effect with a discount to a buyer, the cost would always be far greater and not worth the cost.

The Bonus MUST be for an Accepted Offer.... NEVER based on offers at List Price or for very short times. If a time limit is used make it for being placed under contract NOT closing. If you do otherwise... YOU will loose credibility and it will NEVER work for you again. I have seen many agent attempt to entice showing only to pull the bonus for bogus reasons.... they loose in the long run.... don't make that mistake.

Most agents are honest and realistic.... they will show high payoff properties more often if they come anywhere near their clients interest and needs. To do otherwise is simply silly, unrealistic and possibly naive.

Thanks, all! Very informative discussion, as usual.

The agent they're probably going to use talked them out of it.

When they emailed me about it last night, I told them I didn't think they needed this kind of incentive, and that pricing the house right and paying a decent commission would yield the results they were after. Glad to see there's agreement here.

I think you might.

Let's say there was a billion dollar bonus. The house is a 3-2 beachfront and it's a great one but your buyers want a 3-3. Usually you wouldn't waste your time showing it because it has 1 less bathroom than they want, but for a possible billion dollars you're telling me you wouldn't take a chance and say "here's another one that just misses your wish list, but hey let's take a look you never know you might fall in love with it."

There's always some grey area, some houses that are long shots but the buyers might love it when they see it. That's where bonuses come in handy.

For a billion dollar bonus, I'd buy the house myself just to get the bonus then turn around and sell it. Be realistic Jason... the radical situations you present in your arguments for or against something never cease to amaze me.

-J