I had a listing that the owners told me they wanted to withdraw a while ago, I convinced them to give me a couple more weeks, I immediately slapped a $3,000 selling agent bonus on the listing. Showings increased, but no sale. We withdrew. A man calls me about a month after the listing had been withdrawn, he had seen it before but his house did not have a contract, now it did, he wanted to see it. I called my owners, they obliged, signed a listing extension, and his agent took him over there and now it looks like we are going to have a contract!! Super excited, why am I so greedy, I don't know? I guess because the intent of the bonus was to entice an agent to sell the thing, however, this agent just stumbled upon this house by no doing of his own after it had been taken off the market because his client liked it so much.. but I never put anything in the listing about "paid to selling agent by XX/2011" or etc.. so I guess I owe it to him, huh? I had an agent only pay me 1/2 of a $2000 bonus on one of my very first deals even though it was more so the seller's fault settlement did not occur by the date specified.. however, my client's rate lock was expiring so I had no room to delay over an argument..

So.. I guess I should feel lucky it's being sold after we withdrew and also I'm helping the clients buy their new house (which will be 50% more expensive!), so two deals out of one withdrawn listing.. what's a $3000 bonus, eh?

If it was on the MLS at the time of initial offer or notification that he was represented then yes.

If not then I dont see why you should give up money. But if its a big enough pay out I would pay out the bonus or part o it just because karma can be my ex-wife.

No.. I withdrew the listing a month ago.. offer came today.. like I said this buyer came out of nowhere!! Amazing. I think I'm going to pay it because if the selling agent were smart enough (or slick enough) he would have immediately called the owner and tried to list it as unrepresented fsbo at higher than 3% and then take the whole thing.. instead his client called me and I quickly got the listing extension..

Commission will be $12,000 gross, $10,000 change after my split, $7,000 and change after the bonus.. but then I'm going to sell them a house so the total benefit to me after all is said and done will be more like $20,000 - $23,000 after splits and bonus paid! So.. I guess I shouldn't be greedy.

So you have to pay the bonus before the split? That would suck. I don't do bonuses but if I did it would definitely come be for the split.

Why would my broker chip in on the bonus?

Your broker gets a percentage of what you make. If you didn't make the $3000, there is no percent to take. Or look at it another way, you felt the $3000 would get the home sold. You are working on behalf of your broker their for your broker feels it will take $3000 to get the home sold. Either way you and your broker are in it together, good and bad.

This is how my math and thoughts work, and as long as I'm a productive agent it will stay that way. When my broker feels different he can let me know and if it makes sense to let me go then let me go, but I make dollars so it makes sense.

Its illegal to give anyone cash outside of the transaction. Its a RESPA violation. You will just need to have the title company or closing attorney (depending if your in a judicial state or not) to amend the commission statement before closing.

but if the other guy doesnt know about the out of date spiff you put on the property... why give away your money? just buy him some upper end liquor as a thank you gift... it makes everything good.

and maximizing your revenue on the transaction isn't greedy. its business.

and on that note: http://www.youtube.com/watch?v=bVVsDIv98TA&feature=related

There was a amazing Mike Ferry tape I listened to years ago, he discussed for a bit the problem that some realtors have when they start making good checks on easy deals that seemed to have no effort to them. They struggle with success even more than they struggle with just getting by. They say "what did I do to justify this kind of money". And the fact is that you did your job and no one is complaining... the seller is happy, the other realtor is happy, and when you get lit up with a nice fat 5 figure check you can be happy

Why do you think that it would be paid outside of the transaction? I would have it put on the HUD-1..

What did the agent put on the contract in regard to the commission, was he even asking for the bonus? It could have been worse because the other agent failed to ask the buyer if he had seen any houses he might like to see again, and then got a listing of his own and put you out of the deal period.


I personally would just pay it if asked and congratulated the buyer and agent on a successful purchase. Then lesson learned be more specific on my MLS listing next time. Surprises me how many agents are too lazy to add a few words, and then cry when you accept their offer as written. In your case you said you extended the original listing so to me the offer would have still been in effect.

Sorry, must have misunderstood what you meant

I would wait and see if the agent asks for it. If he does then make an adjustment on the HUD at that time. As a buyer's agent, I would not expect to receive it on a withdrawn listing, however, as a buyers agent I know to get escrow instructions for the commission prior to submitting an offer. I want to see either the listing active on the MLS stating the commission being offered or a signed commission agreement. Without it, I'm technically not owed any commission so I wouldn't even send the offer in.

If the buyer's agent isn't even mentioning anything than he is assuming just your regular buyer's split.

I agree with the prior posters. I would have expected that the bonus offer expired with the original listing.

When the buying agent contacted you, you could have drawn up a new listing agreement with your sellers instead of just "extending" the original paper work.

Call me cheap . . . . but I have not paid any bonuses out of my Commissions. If I have an anxious Seller, we'll add that incentive as a bonus Commission to the Broker who procures a Buyer who goes to Closing . . . . and the Seller happily pays it at Closing.

In this scenario, it sounds like the Listing Agent is funding the Bonus out of his own Funds. That's very charitable!

All of this discussion is a result of sloppy work.Next time put an expiration date in the MLS.

Do not count any commission until it closes and you get your check and make sure it is cashed and good.

I have seen closing attorneys,title companies,brokerages go under and then funds are frozen by the government or in a bankruptcy proceeding and you never see the money as an agent.

Brokers/agents start losing steam and getting comfortable once they see upcoming commission checks.Then a few deals fall apart and income is not what was expected.No matter how much business you have you have to keep the pipeline full because you can never 100% predict which ones will close.

Sometimes it's not about how good a job you do or how much you think out of the box.It just does not happen.

Heavens, I never count my chickens before the eggs are hatched...and I save for a rainy day all the time.

Just like "super realor" said, don't count it until you have the cash, and that means that the check has cleared the bank, not check in hand.

Did this deal close yet? Just wondering how it turned out for you.