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.

 

 

www.jlboney.com

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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

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Comment balloon 20 commentsJL Boney, III • March 31 2009 12:41PM
Why Give a Bonus Rather Than a Price Reduction
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