What cracks me up most is when I'm searching thru the MLS for properties for my buyers and I see "broker bonus" or extra commission paid to the selling agent. Anything from a higher commission to a flat amount (I've seen thousands of $$) to be paid to the selling agent at close.
This is not a good incentive to get your house sold. The AGENT isn't the one buying the house, the BUYER is. Don't get me wrong, I'd LOVE to receive that extra amount for doing my job, but if I have a buyer and another agent has a house listed that match their criteria, I'm going to show it to them. The extra $2,000 in commission is not going to enable me to make their mind up to buy that house. And I'm certainly not going to push someone into buying a house that isn't perfect for them.
What incentives work? Practical ones that focus on the home price and monthly mortgage payments:
1. Reasonable asking price. Have the most bang for the buck. Be "below assessed value".
2. Offer downpayment assistance.
3. Offer to pay all or some of the closing costs.
4. Buy mortgage points for the buyer to make the transaction more affordable.
5. Include a home warranty.
You can advertise your incentive to bring buyers in if you are not having much action, or you can use them once you have an interested party to sweeten the deal.
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