Comments on: Buyer Agent Bonuses

By: Buyer's Agent Atlanta Georgia GA New Homes

Buyer's Agent Atlanta Georgia GA New Homes — Wed, 25 Jun 2008 19:02:40 +0000

If buyers will directly pay their buyer’s agents, then your argument would be appropriate; but, most buyers want the best of both worlds. They don’t to pay anything, plus no buyer agent bonuses either; that doesn’t even make sense. We must get paid somehow.

If a buyer’s agent bonus is in place, then I will have earned it — but it will not influence me to encourage a purchase.

By: Why I Hate Buyer Agent Bonuses

Why I Hate Buyer Agent Bonuses — Fri, 16 Nov 2007 00:33:21 +0000

[...] It is not about sales, but about representing clients and fiduciary responsibility.Â Lack of true client representationÂ is one of the reasonsÂ I got into the Chicago real estate biz in the first place.Â Ardell says it best so refer to the excellent post at Rain City Guide.Â Read the article at Rain City Guide: Buyer Agent Bonuses. [...]

By: Why I Hate Agent Bonuses at ChitownLiving

Why I Hate Agent Bonuses at ChitownLiving — Tue, 15 Aug 2006 00:15:04 +0000

[...] Rain City Guide: Buyer Agent Bonuses [...]

By: Seattle’s Rain City Real Estate Guide » Negotiating the Commission vs. “Discounting”

Sat, 15 Jul 2006 17:02:10 +0000

[...] One of the main reasons to highlight the difference between “discounting” and “negotiating” is the fact that Buyer Agent Bonuses are on the rise. Every night I receive emails and “Zip Your Flyers” from agents around the Puget Sound offering “$5,000 EXTRA Buyer Agent Bonus!” and “4% SOC!” [...]

By: ARDELL

ARDELL — Sat, 27 May 2006 23:06:54 +0000

Russ, I’m sure TB is allowed, but it is not an option explained in the Washington Law of Agency handout. I think it should be, so that consumers can trade down to Transaction Broker for a reduced fee. Buyer’s wanting a reduced fee is clearly a demand of the marketplace, and that option should be more readily available.

As to how “hard” it is to sit down with a buyer and address payment scenarios of “low SOC’s”. The topic of the post is HIGH SOC’s. I sat down with a buyer and we together determined his fee, based on his price range, needs and qualifications, to be 2% of sale price. So if the property he eventually purchases has a 4% SOC, he gets 2% of that and I get 2% of that.

At present I do not charge Buyers for a low SOC and haven’t run across that problem in properties I have sold. I think we will actually see it less and less over the next six to twelve months here in the Seattle Area.

I would love to see more progress with regard to buyer’s setting the buyer agent fee with their agents. But there is reluctance in our marketplace to accommodate that line of thinking, particularly among the large, traditional brokerages.

By: Russ Cofano

Russ Cofano — Sat, 27 May 2006 22:42:58 +0000

Ardell,

Just a quick clarification. It is legal in Washington to be a Transaction Broker (i.e. representing neither buyer nor seller in the transaction). Not many folks do it but it is allowed.

I guess I am a bit confused on the problem with dealing with low SOCs. How hard is it to sit down with your buyer and address the various scenarios for the payment of the agent’s desired compensation and create a plan to deal with each.

-Russ

By: ARDELL

ARDELL — Sat, 27 May 2006 07:12:49 +0000

Back to Becky 15. and 23. I see you answered my question in that you are a transaction broker and not a Buyer’s Agent. Here in Washington agents represent buyer’s at first contact, without an agency agreement, and we do not have Transaction Brokerage.

As to how do I “handle my commissions with buyers?” Pretty much the same way I do with sellers. I don’t make a distinction between the two different types of consumers. I determine the value of my services based on their needs. It’s a little harder with buyers on the front end to determine the time and effort that will be needed, so sometimes I have to catch it on the back end.

By: ARDELL

ARDELL — Sat, 27 May 2006 00:20:52 +0000

Russ, Thanks for the response. Sounds a lot like “fiduciary duties” to me, so glad I didn’t drop my standards. Without regard to self interest equals fiduciary level of care, doesn’t it? As for buyer’s signing contracts, as long as they get to negoitate commission issues at the same time…but many want buyers to sign contracts and act like the commission is none of their business because “it is paid by the seller”.

By: ARDELL

ARDELL — Sat, 27 May 2006 00:12:06 +0000

Becky, I worked in FL when they Outlawed Dual Agency and brought in Transaction Brokerage back in 1996 or so. When you are “working with” a buyer, are you a Buyer’s Agent or a Transaction Broker?

By: Becky

Becky — Fri, 26 May 2006 23:35:43 +0000

I really don’t know…a very large “discount broker” that I won’t mention the name of….used to put listings in the MLS for $202 minus $200…..which works out to be a $2.00 commission for the buyers agent. I questioned them on it to clarify I was reading it correctly and they said “that’s just the way we put it in the MLS, if your buyer wants to make an offer then you have to write your commission in the contract and hopefully the seller will approve it”……now that’s a load of CRAP! And if the seller doesn’t pay your commission….I guess you’re screwed? Gimme a break! Last time I checked, the real estate profession wasn’t classified as a “non-profit” originization!

But what can you do? I hear other agents talk, and hear what they do…..things that they aren’t supposed to do, but they do it anyway, like secretly boycotting certain companies or agents for this very reason. I guess in the long run it worked…..because that “discount broker” doesn’t do it anymore!

Luckily, I haven’t been put in the spot yet where a buyer wants that particular property and the other brokerage is only offering $1 or $2 for a commission.