Selling bonuses are not allowed in my area and I think it's just as well. We have enough ethics issues as an industry without the suggestion that an agent should sell his or her client out for an extra few bucks.

In my area you have to disclose that bonus to your buyer.  Too much of an ethics issue for me.  My attitude is - just sell more.

Selling bonuses are a joke in my opinion.  Any agent who would try to steer a customer only toward listings offering a bonus is an unethical agent in my book - PERIOD.  Occassionally we get a seller who asks if we think offering a bonus to the agent would help and we say, "if you're eager to give away a few thousands dollars, why not give it to the buyer to help with his closing costs or whatever?  The buyer is the one making the decision - not the agent!"

We just closed on a listing in which we were the buyer's agents.  The seller was offering a $2500 bonus to us... instead of accepting the bonus, we negotiated a selling price $25,000 less for our buyer.  Guess what?  The buyer was thrilled and the seller was impressed with our skills... he told us so after the closing and asked for more info on how we work.

If we, as an industry, really want to be taken seriously and respected we are going to have to rise well above the 'norm'.  I am a firm believer that when we do WHAT IS RIGHT for our customers, the money/income will take care of itself.  It is not unlike playing a sporting event.  The person who concentrates on 'scoring more points' will lose out to the opponent who trains to become the best athlete possible and execute the moves/plays/gameplan flawlessly.

Ethics makes a difference.

I agree with Tim and Susan, "selling bonuses are joke."

It's the buyer that's going to make the decision, so the bonus if any should be offered to the buyer in the first place.

Having said that, should you take the bonus or not depends on your agrement with the buyer, many agents say if its over xxx amount the buyer gets the balance and if its under xxx amount the buyer pays the difference. We don't do that but I heard its being done.

Commissions are negotiable in CT.

Good Luck,

I personally think selling bonuses are a little corny but a more aggressive commission can certainly peak some broker cooperation.  I cry like a baby and run away if there is not at least 3% per side.

- Radley

I have no problem accepting legal money.  In fact, I sleep very well after each closing.

As we all know, there is no 'standard' commission. Commissions are always negotiable. A seller will offer a higher than 'usual' commission to induce more traffic. If I sell the listing with the higher commission, I feel no need to turn around and share it, because, after all, the seller offered it willingly and I did my job and sold his house. He'll pay me what's he's comfortable paying. The fact that commissions are always negotiable cuts both ways, you know. A seller can offer to pay more commission just as easily as he can negotiate to pay less; it's up to him. I also don't expect my clients to make up the difference if the commission offered is less than the (nonexistent) 'standard', by the way. It's all the cost of doing business, and the few that are higher make up for the few that aren't, IMO.

I understand the concern/confusion as regards higher commission vs bonus.   The fact is that we do not look at either when assisting a buyer.  Rather, we look for all listings that match the buyer's stated needs and desires and let him choose which ones to view and which one to purchase... our concern is in doing what is right for the buyer FIRST and FOREMOST.  It's a little thing I learned in pre-school called 'The Golden Rule'.  I know... it's a bit out of vogue today. SIGH.

Yep, I agree Shelly.  I have no problem taking the 'higher' commission as long as the choice was the buyers and I know in my heart that I did not steer them towards that choice in order to serve my own desires.

Here's how I tested the situation:  I asked myself if I would be comfortable saying to a seller during our first meeting together (or second, third or thirtieth for that matter) something along these lines.

"So, Mr. Buyer, now that we've established your needs in a home I need to explain to you that there are probably about 40 homes that will pretty much match your needs but, of course, they won't be identical to each other and will have different lots, face in different polar directions, have different foliage and various other minor differences.

Furthermore, I need to explain to you that I am not going to let you know about every one of these listings.  I am going to choose only those that offer me the highest compensation.  Does that work for you?"

.....nope, I just can't envision a scenario in which I'd be comfortable saying that to the buyer.  And, if I'm not comfortable 'saying' it then you can rest assurred I couldn't be comfortable doing it either.  To each his own I suppose.  I have an over-active conscience.  Thanks alot, mom! ;-)

Okay, normally I take the "High" road but Tim and Susan have that covered so I'll represent the "Low" road.

Commissions make the world spin around and without them, this planet will fall from the sky.

I run like heck from any of these discounted or flaky commission scenarios.  Buyers all end up happy.  There is TONS of inventory out there right now.

Hello, my name is Anna and I am a bonus-holic.

Not really, but I have and will continue to accept bonuses. Everything is very well disclosed in TX and I have never had a client request a rebate either. I earned it. The first one I received was for a 15K HUD Repo. After all the extra work done, I'm sure I earned at least $1.00 an hour.

Do I seek them out? No.

Do I "steer" my clients? NO WAY.

Do they make the final decision? Always.

Am I the lowest of the low? By some standards, probably, but every client that I have ever received a bonus on, knew about it before the offer was made. Not one has told me that I wasn't worth it!

shelly,  If it's legal and disclosed take the money and enjoy the fruits of your labor.  Bonuses are incentives and legal around here.

Francy and I were just talking about this last night. We were wondering who and when it was decided that 3/6% was "it". I know, I know, there are no set commissions. But unless we're living under a rock and in complete denial, we have to understand the perception of the masses out there is the whole 3/6 thing.

I disclose my split to my buyers, and do not feel obligated at all to "rebate" something over and above some mystical level. I have worked with a couple on new builds where the builder was offering a ridiculous buyer agent co-broke (10%). I gave up half of that in a price reduction to the buyer. They were tickled pink, and we still got a nice commission. I didn't feel *obligated* to do this, and in fact had to pretty much talk one of the buyers into letting us do it. I did it because it seemed like the right thing to do.

No one seems to mind when we cut our commission below some mystic level. As long as all the parties know up front what's happening, I sleep quite well.

I can't say that I've ever noticed a selling agent bonus around here, but I don't look for them, either.  I have seen lots of bonuses for buyers if property closes by such & such date, though.

Shelly whatever is offered, that you are willing to accept, is your payment for hopefully doing a job well done.  So why be obligated to give your money to a buyer or seller?  I have seen bonus' if the property sells by a certain date, cars, trips, 4% commission.  This is all in hopes to get agents to show that property over the others in the neighborhood!  So I see no reason to feel guilty if a client happens to fall in love with that house too!  

The smart sellers are the ones who offering a decent commission plus offering to buy down the buyer's interest rate, or offering to help with closing costs, or carpet and paint allowance, or free house cleaning, or help with moving costs, etc.  Seller's are not stupid and know that the cost of doing business in this market may mean getting creative.  They know that the more people who see their home over the others in the neighborhood the more chances that their home will sell in a timely manner.

Jana