ONUS ON BONUS?

Some home sellers hope to generate interest in their property by offering bonuses to buyer’s agents, believing that it motivates associates when more compensation is on the table. However, many real estate professionals believe another tactic – pricing homes competitively by lowering the asking price – is more likely to close a deal. According to NAR associate counsel Michael Thiel, “It would be unethical for an agent to not show a client a property they thought was more suitable to the client’s needs and desires, in favor of showing them a property that offered a bonus.” However, Thiel notes that it is not inherently unethical for Realtors to accept bonuses. While some associates continue to offer low commissions to generate business, others are requesting more compensation to cover their marketing costs – especially if the home is not priced appropriately for the market.

Source: RISMedia (02/01/08)
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