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Common Incentive

Buyer Agent Compensation Incentive

2.5% Paid to Buyers Agents/Co-op MLS Agents

Advantages:

       *  When offered 2.5% incentive to sell your home, virtually every agent will show your  property.

       *  This is becoming the most common expectation by most agents

Disadvantages (compared to offering higher compensation):

      *  May or may not get priority showings.

        * Will not generate much additional excitement/enthusiasm

        * Won't likely create any ""buzz"" factor.

        *  Could discourage a busy agent from showing at all (everything else being equal).

NOTE:  Seller is not required to pay for Buyer Agent Commission.

Why a lower Co-op incentive can cost you money

Hundreds of agents working on commission-only will be available to try and sell your home. They are all trying to maximize the highest return in the shortest time period, so they tend to look very carefully at what percentage is being offered them to sell a home. Larger percentages tend to get them more motivated to take buyers to see your home. Reducing the economic incentive for them to sell your home may end up costing you far more than you save.

EXAMPLE: If there were 2 cars to wash and you could only wash one of them, would you do the one that paid $20, or the one that paid $40? You likely would not choose the one that paid just $20 unless it was the only one available. And if you agreed to do it, you may not like it and not do the same job or do any extras like you might on the higher paying job.

The very same concept is at work in real estate commission sales. By offering a higher incentive to agents, your home will possibly sell much quicker and for far more than the amount you are paying "extra".