I don’t have a license to lose first of all, I am NOT a realtor, I’m an INVESTOR! Secondly, There is not a thing wrong with putting a better commission deal on a home as an incentive. Now…having said that, IF you were under the IMPRESSION that… I… was a realtor and was suggesting this method, then I agree 100% with you. It would be unethical to tell a seller you’d do a better job if they gave you more money. I AM NOT, and NEVER have been a realtor in any state, at any time, in my life. Considering that…
What you are telling people here does not make any sense at all. We all know it’s perfectly fine for me to write a listing agreement were the realtor gets only a 3% commission. If it’s OK to offer a lower than “standard” (6%) commission then there is absolutely NOTHING wrong with offering a BETTER one.
Just so you guys know this…I have done this OPENLY and IN WRITING in, Massachusetts, Rhode Island, and Virginia. I… not the REALTOR, writes this into the listing agreement. It is my choice. The extra commission is usually split between the buyers agent and my (sellers) agent. I use 12% but if you usually pay a 5% commission you could accomplish the same thing by doing a 10% rate. IT’S UP TO YOU. No one is holding a gun to my head.
I do this to stimulate activity for the listing. My attorney, numerous realtors, and other investors have used this method and there is nothing wrong in doing so. Has anyone ever heard of a realtor putting IN part of their commission towards a price reduction on a home? I guess THAT would be unethical also, based on your logic.
Having said all of that, if you offer a 50% commission and property is not priced correctly, it still will not sell.
Your comment is suggestive of some type of illegal activity. Your wrong. The increased commission is listed right on the MLS sheet. Again this is my choice as a seller. The realtor has not solicited this in anyway, shape, or form. My agent splits the increase with the buyers agent. EVERYBODY WINS! Would my homes sell without it?? Probably? But I don’t DO probably’s in this market. I want in and out FAST!!!
I pay for performance. I get what I pay for plain and simple. All my properties are AGGRESSIVELY priced and I continue to use this method because IT WORKS FOR ME.
There is absolutley NO WAY a realtor is going to lose their license accepting a written agreement that I WROTE with a higher commission based on an IF, and THAT is the BIG WORD here…IF…they sell that home in 30 days. They know that, I now that, and anyone reading the listing knows that. I’ve sold over a dozen homes in the last 2 years (since the market slowed) using this method and have had transactions in 3 states with 12 different realtors. NEVER A PROBLEM, never even a question about this.
Remember where your closings take place??? Usually at an Attorneys office. That closing attorney does the payouts to the parties involved, the 12% is right there in writting, nothing hidden, nothing underhanded, IT’S AN INCENTIVE!!! 12 attorneys have paid this money out on over 13 different occasions. If it was illegal, they. by law, could not complete the transactions.
Sorry, your wrong on this one.