JL's Columbia SC Real Estate Blog

Why Give a Bonus Rather Than a Price Reduction

 The simple answer to that question is, for the life of me I have no idea. Will Realtors sit up and take notice of the fact that there is a bonus attached to the listing, absolutely! I see listings on our MLS that offer $5,000, $10,000, and even one I noticed lately that had a $20,000 bonus to the selling agent. Don't get me wrong, I myself would love to get that $20,000 bonus, but the fact of the matter is that if my clients do not like the home itself and feel that it is priced fairly, then no bonus for J.L.

 I'm not in the habit of trying to sway my clients in any direction what so ever, after all, it is my clients that have to buy the home and live in it themselves. So with that being said, I think there are far more important things on their minds than a bonus that is offered to the selling agent. I know this has been the case with everyone that I have encountered, and I seriously doubt that there are any other agents that will tell me they have clients who ask them, "Is there a bonus available on this house? "

 I do however attempt to find my clients a home that they will love and make their own that fits the description they provide of what they are looking for. I also look for these homes in the price range that they provide to ensure they will be comfortable with their mortgage. I never even look at the commission until it has to be put onto paperwork, once an offer has been made and excepted. I never look at properties for the specific reason of a bonus attached to the selling of said property. I represent my clients and their best interest, not the interests of greed and my own self concern. If you do a good job for your clients and put their interests first, chances are you will make more money in the long run than that quick bonus will provide anyway.

 So my answer to the bonus question is, why not just make it a price reduction. It is money out on the side of the seller, whether it comes in the form of a bonus to a selling agent, or whether it comes in the form of a price reduction on the house. Whenever I have sellers ask me if they should offer a bonus, I ask them what type of bonus they have in mind. If it's a $2,000 bonus, then I tell them to drop the price of the house $2,000 instead. While it is great that you may have some agents take notice of the bonus, and wish they could get it, it would be even better to have a qualified buyer take notice of the price reduction and make an offer. In the end, I see Realtors as service providers, at least that's what I consider myself to be. If my clients are not happy with the house or the price, then it doesn't really matter how I feel about the house. It's the client that must be happy, and buyers don't care about bonuses, they care about what would be a good fit and a good deal for them.





JL Boney, III - Columbia, SC Realtor - Coldwell Banker Residential Real Estate

 I specialize in Columbia, SC real estate and the surrounding areas, including Blythewood, SC, Kershaw County, Fairfield County, and Lexington, SC. If you are in the market to buy or sell a home in Columbia, SC or any of the surrounding areas, I would love the opportunity to speak with to see how I can help. Thanks for reading and feel free to contact me if I can be of service to you.

Office- 803-788-1450     Cell- 803-730-9601     Email- James_Boney@Yahoo.com

My Columbia SC Real Estate Website

My Columbia, SC Real Estate Blog



Subscribe to JL Boney's Columbia SC Real Estate Blog by Email


Comment balloon 20 commentsJL Boney, III • March 31 2009 12:41PM
Why Give a Bonus Rather Than a Price Reduction
The simple answer to that question is, for the life of me I have no idea. Will Realtors sit up and take notice of the fact that there is a bonus attached to the listing, absolutely! I see listings on our MLS that offer $5, 000, $10, 000, and even one… more
A Walk Through The Village at Sandhill
Conveniently located at the corner of Two Notch Road and Clemson Road in Northeast Columbia, The Village at Sandhill has arguably become Columbia's premiere shopping experience. No matter what your day of shopping has you in search of, you are… more
Local Spotlight - Corked Wine Shop, Columbia SC
Nestled within the confines of The Village at Sandhill in Northeast Columbia, is one of my favorite local haunts. Corked is a small locally owned wine shop that offers a little bit of everything from the world of wine. Everything from… more
Is That Good News I'm Reading? Recession Turning Around
I don't know for the life of me how much stock anyone puts into reports they read on Yahoo, but if you haven't read the latest on about the recession, it's pretty optimistic. Financial experts are claiming that the recession should see an end by… more
Facebook… A Study of the Socially Unacceptable
Since I joined the millions of other members on Facebook, I have reunited with friends that I haven't seen in years. I have also made new friends and found it as an excellent tool to stay in touch with people and dare I say it, yes have a… more
Are You There For The Inspection
I know a lot of agents that forgo making an appearance at the inspections of properties that they sell or list. When they sell a home, they open the door, hand the inspector a check and go on about their business. I have only had one listing agent… more
Why Do Sellers Sell
It's a question that I inevitably get from interested buyers on listing. It seems like a simple and innocent question that is done completely out of curiosity, and I can't really blame anyone for asking. However it is a difficult question to answer… more
I am not Socially Awkward… At Least not in General
I would have to say that in general, when it comes to social situations, I am not a typically socially awkward person. I tend not to over react to outside stimulus and even though most of the time I would rather just be left alone, I am not at all… more
Of Heroes
Do you notice the overwhelming amount of super hero movies blowing up the box office over the past few years? Spider Man had three movies, there have been countless Batman movies that last of course was the Dark Knight. The new Superman movie,… more
Spring Has Sprung, But Have You
Now that it is time to once again reset the clocks and enjoy longer days of daylight, the grass is starting to green in certain areas and soon the flowers will start to awake from their Winter slumber. We all know that Spring is just around the… more