RealTown's RealTownTalk

North Carolina will soon require written disclosure to buyers of any bonuses or incentives offered by sellers. It is recommended that disclosure be made at time of showing the property but no later than at the time of writing an offer. No standard form has been created. Does anyone from a state already requiring written disclosure have an example that can be shared? Thanks.

This is another reason for listing agents to explain to sellers that bonuses don't work ... it's like hanging a sign out that says "this listing is overpriced" or that it's a property that has some other real challenge(s).

A better way is to take whatever the $$ value of the proposed bonus is, and add it as X% to the gross commission .... whether it's split between you the listing agent & the selling agent (thereby giving additional incentive to both agents), or whether it goes only to the selling side, is up to you & the seller. Explain to the seller that this scenario creates the same bottom line for him, if he's willing to pay a bonus.

Maryland requires that the bonus be disclosed to the buyer.  Most agents put it in the remarks the buyer sees.  I have received bonuses when working with buyers.  The buyers' reaction  has been positive.  They see the value in what I do and how hard I am working for them.  If you attempt to "hide" the bonus the client will become suspicious.  If you would like the form used in MD, send me an email (I'm not sure how to attach it here) mailto:TheresaDiFonzo@ReMax.net     

John,

You likely have the sample by now but please let me know if you are still needing it.  Keep in mind, this is only used if what you will be paid is more than what you have listed on the exclusive buyer agreement.  If you have X% plus $500 agent bonus, no disclosure is needed.  They have already agreed to this. 

I know many of the agents in the area see this as punishment and strict regulations set upon only our industry, but this is something I have verbally explained and visually showed them in our contract process anyway.  One thing that has me a bit  like a fish out of the water is having to inform them verbally if any home you show differs in any income to the agreed on amount.

I guess we can go for the humor..."You will really like this home since they are offering me a bonus if you buy it!"

Lynn Starkey-Shuler, Fayetteville, NC