Hi Leo, saw his video, he does make a few valid points about the ethics of bonuses and split agency listings.  Just more shop talk type info to confuse the public.  Think you have to consider the source (seems angry at his old broker) and what he states in his blog replies about his transaction volume replying to nasty responses. His track record could be better if he spent less time on utube and more time selling. IMHO, he should read this article and make better use of his time:

http://www.brokeragentnews.com/news/residential/2007_2/2_23_2007_dc_1172248753.html

Happy new year!

LOL, he definitely has a face for radio! ;)

Leo, I agree with both you and utube star. I find those "bonus" options to be very questionable in how the public views us. I am not going to post a reply to his video. However, since you have made it a topic here, I think it should be addressed by his local board.

My thoughts on the boards and associations that steal our money to benefit themselves would make for better u tube entertainment. At least I know I'm laughing while sending out my dues.

Leo, I largely agree that this industry would be much better off if we all spoke kindly of our competitors, and we looked for opportunities to praise, rather than condemn. Having said that, our primary responsibilty under the law is to "protect and promote the interests of the client." It's hard for me to find any good reason that the practice exposed in this video should be allowed. Does it amount to anything more than a bribe to screw a buyer over? If so, I'm open to hearing it.

Until agents have enough respect for "agency" to identify evil when they see it, we will continue to be a business which fails to earn the respect of consumers. Sometimes, the only way to stop something seedy is to talk about it.

Candice, :rofl:  

Well, obviously it's not unethical otherwise it wouldn't be allowed. Since he  doesn't like that and his customers purchase the house he can always just give that bonus to the buyer or refuse to accept it if it.  He can also not accept the inhouse extra 10% if it bothers him so.

I don't 'steer' my customers to anything.  Now THAT would be unethical but if someone is going to cough up extra $$ for me just doing what I would do anyway, so be it.  That's THEIR choice.  

Leo, those are all gimmicks (smoke and mirrors) that are tricks to use with the seller. I have seen someone offer a brand new car for a full price offer. Do you think a buyer is going to offer full price?

Years ago when a offer was made to a selling agent a real bonus went to the agent. Now, if there is such a bonus, the broker claims half (or, whatever the split). How do you split a car?

Anyway, it's all trick played on the seller and "new" agent. If the home owner reduced the price of his home by the bonus amount he/she might get some activity and a sale. The formula of selling real estate hasn't changed since cave dwellings: price, location, inventory. If one is up the other part goes down. All three parts MUST be in balance to get a SOLD.

There was a time I never even looked at the commission split to sell a house. It was getting the best house for the client. But, I look at the company and agent I will be "dealing" with very close now a day. The business has been opened to the lowest of low life playing tricks with bonus, commission splits, and administration fees.

Like Norm said, maybe things need to be talked about to fix.

Norm and Greg: Compensation that I receive for selling a home has never been a topic that I engage in with my Buyer. What I make in the deal may never, ever be disclosed to the Buyer. It appears as a deduction from Seller Proceeds, where it should.

The assumption of this whole discussion is that if the bonus is offered that the Buyer's agent will not do his job and sell the Buyer ONLY THIS HOME. Don't know about you, but my Buyer's have NEVER, bought the home I thought they should (well maybe once), and that was based on my opinion of what was best for them.  I don't know how I would possibly influence them to buy what was best for me!

The Seller and the Seller's agent by offering a bonus is trying to get the home shown more, and ultimately sold.  Will the bonus help in that? Probably some, in the showings, if the offices are aware of it.  Does it somehow screw the eventual Buyer, of course not!

Since I have been around in RE about 1992, bonuses have been a regular part of a seller's arsenal to entice someone to buy the home.  We are offering one right now, $10,000, on a $500,000 home. This Seller approached us about offering it.  I would wager that most of the time, this kind of incentive is offered, BY THE SELLER, so they feel like they are doing all they can to get the home sold.  In reality, I doubt is has much of an impact in the real outcome.

As a fairly new agent, I listed a house at about $20,000 above what the seller initially thought the home was worth.  After about a month, she offered a $5,000 bonus. Within a week, I got a sign call and sold the house to a Mom relocating to Utah that wanted to live close to a married daughter just two blocks from the house.  It was the only one she could afford.  I made the commission on both sides and the bonus. I offered to take the bonus off, but the Seller insisted.  Only one I ever, ever got.  

I'm with you and Cyd, Leo

"Years ago when a offer was made to a selling agent a real bonus went to the agent. Now, if there is such a bonus, the broker claims half (or, whatever the split). How do you split a car?"

Ooooh, you poor thing!  I get to keep any bonuses.  If the commission is higher, that gets split but not bonuses!  :)

Besides, I think he was talking about offering a car to the BUYER, not the agent.   And thank goodness...I don't think I could afford the taxes on the car, lol.

I think the example here was "said bonus for a full price offer."

See any problems with that? Should that be disclosed to the buyer?

In Canada, buyers have a right to know how their agent is being compensated and it's a criminal offense to earn a "secret profit."

I wonder if he can sing also Candice? I saw this guy on American Idol trying to sing, you all may have remember him..

http://youtube.com/watch?v=6ijx-oe0o64

Pay no attention to that no body, rememebr its "You Tube"

You are playing into his spiel.. we are better then that.

Vance, that is very appropriate. Only a little bit pregnant for a virgin.

LOL being able to sing and sing well are different LOLOL

Vance...it's denial! The poor guy trying to be something he is not.  I feel sorry for him.  

I have sellers that have used incentives to get their home sold as well. When I show homes to buyers with seller's incentives listed in the agent's area only on the MLS, I always show this to potential buyers to let them know how motivated the seller is. It is no secret and my duty as their agent to disclose all information on any home they are interested.

Hey, how about ads now for TurboTax or TaxCut? You can now get bonus software with your purchase! Does that mean Intuit and H&R Block are getting kickbacks? Hmmmm? I think it is good old fashioned American competition!