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Gotcha Guide™: Agent Bonuses are Bunk! Offer Real Incentives

Posted at Texas Real Estate Experts by Dee Copeland

Jan. 25, 2008

Categorized in: Gotcha Guides

Tagged with: agent, bonus, buyer seller, gotcha guide, incentive

NOTE: This article is part of the forthcoming book, the Gotcha Guide™ to Buying or Investing in Real Estate. By DeeinAustin™

Now that the mortgage market isn't so hot, builders and home sellers are super hot-to-trot on buyer agent bonuses. They think agents will be more motivated to show their homes if offered extra monetary incentives.

Here's how a buyer agent incentive is cooked up:

INGREDIENTS & DIRECTIONS (TASTY BUYER AGENT BONUSES)

Step 1:Take 2 cups of a Seller with an over-priced home.

Step 2: Whip in a heaping mound of a Cooled Real Estate Market.

Step 3: Drizzle in 1/2 teaspoon of a Listing Agent willing to "try anything".

Step 4: Pile on $5000 worth of a Buyer Agent Bonus.

Finally: Sparingly sprinkle on Potential Home Buyers and Top with a Smart Buyer's Agent.

COOKING INSTRUCTIONS: Half-bake until the home is taken off the market, the seller lowers the price, or you offer a real incentive that meets the buyer's needs.

WHY BUYER AGENT BONUSES SOMETIMES WORK

If your home sells because of a buyer agent bonus, it's because you changed our formula.

1. Swap out the smart, ethical buyer's agent with a greedy, Easy-Money Agent who values a trip to Cancun more than their client.

2. Ensure that you have an uneducated buyer who isn't aware of the bonus, home values, and/or isn't sharing the bonus.

PROBLEM: Many Easy-Money Agents are getting out. In leaner times, agents who aren't dedicated stop getting referrals and leave for easier ways to make money. In this new market, their gravy-train has stopped.

DON'T CATER TO THE GREEDY SALES AGENT! USE THESE 5 PROVEN WAYS TO GET YOUR HOME SOLD...NOW!

Match the features with benefits. Display numerous photos and describe the home in a refreshing, alluring way. Write longer sentences that capture the buyer's imagination.
Stage the home. Your home needs to look, feel and showcase like the new home where someone will raise their children, relax, retire, and entertain friends.
Minimize the buyer's expense. Pay a portion of the their closing costs or loan discount points.
Complete repairs. Buyers want to be proud of where they live without hassle. Repairs are better, but if needed, offer an allowance.
Help them qualify. Take a second lien, lease option, or a seller financed note. Each one of these can be separate topics, but they provide a motivated buyer easier access to financing.

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User Comments

1. RE: Gotcha Guide™: Agent Bonuses are Bunk! Offer Real Incentives

Written by: Julie Woodward-Trenker

Jan. 29, 2008

Great article. It is refreshing to see another agent willing to call those "agent incentives" exactly what they are, self-serving. I never did understand how agents who operate with the frame of mind "What's in it for me?" continue to do business.

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