On a daily basis I receive about 100 emails. A good percentage of them are listing advertisement emails from other agents. Most of them don't even get opened, they go directly from the Inbox to the Deleted Items folder. However, every once in a while something in the Subject line catches my attention. My guess is that this one caught a lot of attention..."WANT A PORCHE? Full price offer by 9/15/07 w/ a 30 day close & drive off in a gorgeous 2006 Carrera S Coupe in Carmon Red Metallic w/stone grey full leather interior."
I've written about Buyer's Agent incentives before (Bonus to the Buyer's Agent - Money Well Spent?). And Jay Thompson over at The Phoenix Real Estate Guy has written about the idea of buyer's and buyer's agent incentives, Buyers Incentives: Superbowl Tickets and The Sacrosanct 6% Commission - How About 12%.
Jay and I have voiced similar concerns about offering incentives to the Buyer's Agent. Is it really the right place to spend the money? Is it right for the Buyer's Agent to accept an incentive as large as what some sellers are offering? (i.e. 2006 Porsche, an additional 9% commission, etc.) How do you approach the situation with your buyers if they are interested in the house with the incentive? As is the case with the scenario that I've brought up today, the buyer's agent's incentive is only being offered with a full price offer and a 30 day closing. In this situation in order for the buyer's agent to earn the incentive, he/she could quite possibly be doing a disservice to his/her clients by getting them to offer full price. Especially in this market where it would be very rare for a buyer to pay full price for a home. All legitimate questions and concerns without any definite answers. I would say that each individual situtation deserves it's own individual solution.
[tags] Phoenix Real Estate, Buyer's Incentives, Buyer's Agent Incentives [/tags]